Planning for a peaceful retirement involves ensuring a stable income to meet day-to-day expenses. The LIC Pradhan Mantri Vaya Vandana Yojana Plan-856 (PMVVY), introduced by the Government of India, is a simple yet effective solution for senior citizens looking for guaranteed income post-retirement. Operated by Life Insurance Corporation of India (LIC), this scheme offers financial stability and peace of mind during your golden years.
What is LIC Pradhan Mantri Vaya Vandana Yojana Plan-856?
The LIC Pradhan Mantri Vaya Vandana Yojana Plan-856 (PMVVY) is a non-linked, non-participating pension plan exclusively for senior citizens aged 60 years and above. It ensures a fixed pension income for 10 years, with returns safeguarded against market fluctuations. This scheme is perfect for retirees who want a reliable source of income.
Key Features of LIC Pradhan Mantri Vaya Vandana Yojana Plan-856
- Guaranteed Pension: Provides assured monthly, quarterly, half-yearly, or yearly pension payouts for 10 years.
- Senior Citizen Exclusive: Designed for individuals aged 60 years and above.
- Single Premium Payment: Pay a one-time premium to secure your regular pension.
- Fixed Returns: Offers a guaranteed rate of return on the invested amount.
- Loan Facility: Avail a loan of up to 75% of the purchase price after three years.
- Maturity Benefit: At the end of the policy term, the purchase price along with the last pension installment is paid back.
- Death Benefit: In case of the policyholder’s demise during the policy term, the entire purchase price is returned to the nominee.
- Tax Exemption: Pension income is taxable, but premiums may qualify for tax benefits under Section 80C.
Eligibility and Plan Details
| Feature | Details |
|---|---|
| Minimum Entry Age | 60 years |
| Maximum Entry Age | No limit |
| Policy Term | 10 years |
| Minimum Purchase Price | ₹1,56,658 (for yearly mode) |
| Maximum Purchase Price | ₹15,00,000 |
| Pension Mode | Monthly, Quarterly, Half-Yearly, Yearly |
| Pension Rates | Guaranteed based on the mode chosen. |
Why Choose PMVVY?
- Reliable Income: Offers a steady income stream for retirees.
- Market-Proof Returns: Fixed returns are not affected by market volatility.
- Nominee Security: Ensures your purchase price is returned to your nominee.
- Loan Facility: Helps meet unexpected financial needs during the policy term.
- Ease of Access: Available for purchase online through the LIC website or offline via LIC agents.
Pension Payout Modes and Rates
| Mode | Minimum Pension | Maximum Pension |
|---|---|---|
| Monthly | ₹1,000 | ₹10,000 |
| Quarterly | ₹3,000 | ₹30,000 |
| Half-Yearly | ₹6,000 | ₹60,000 |
| Yearly | ₹12,000 | ₹1,20,000 |
How to Apply for Pradhan Mantri Vaya Vandana Yojana Plan-856?
- Visit LIC: Go to your nearest LIC office or visit the official LIC website.
- Select Pension Mode: Choose the frequency of pension payouts (monthly, quarterly, half-yearly, or yearly).
- Fill the Form: Provide necessary details and documents, including age and address proof.
- Pay the Premium: Make a one-time payment based on your chosen pension mode and amount.
- Receive Policy Document: Once processed, you’ll receive the policy document detailing your pension plan.
FAQs on LIC Pradhan Mantri Vaya Vandana Yojana Plan-856
1. Who is eligible for PMVVY?
Any Indian citizen aged 60 years or above can apply for this scheme.
2. What happens at the end of the 10-year policy term?
At maturity, the purchase price is returned along with the final pension installment.
3. Is there a lock-in period for PMVVY?
While the policy term is 10 years, you can avail of a loan or surrender the policy under specific conditions.
4. Can I avail of a loan under this scheme?
Yes, loans up to 75% of the purchase price can be taken after three policy years.
5. Is the pension income taxable?
Yes, the pension is taxable as per the prevailing income tax laws.
Conclusion
The LIC Pradhan Mantri Vaya Vandana Yojana Plan-856 is a reliable choice for senior citizens looking to secure their post-retirement life. Its guaranteed pension, market-proof returns, and added benefits like loan facilities make it a comprehensive retirement solution. Whether you’re planning for your daily expenses or a safety net for unforeseen needs, PMVVY ensures you enjoy financial stability and peace of mind in your golden years.
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