Pension Schemes in LIC For Senior Citizens: LIC Senior Citizen Pension Scheme, also known as the Pradhan Mantri Vaya Vandana Yojana (PMVVY), is government-backed pension schemes in lic that is specifically designed for senior citizens in India. The scheme is operated by the Life Insurance Corporation (LIC) of India, and it aims to provide financial security to elderly citizens in their retirement years.
The scheme is open to all Indian citizens aged 60 years and above, and it offers a guaranteed pension payout for a period of 10 years. The minimum investment amount for the PMVVY is Rs. 1.5 lakh, and the maximum amount is Rs. 15 lakh. The scheme also provides a death benefit to the nominee of the policyholder, which is equal to the purchase price of the policy.
The PMVVY scheme provides an attractive interest rate of 7.4% per annum, which is paid out on a monthly, quarterly, half-yearly or annual basis, depending on the preference of the policyholder. The scheme also offers the option of premature exit, with a surrender value payable after completion of 3 years of the policy tenure.
One of the main advantages of the PMVVY Scheme is that it is completely exempt from Goods and Services Tax (GST). Additionally, the pension received from the scheme is treated as income and is taxable under the Income Tax Act, 1961. However, the tax liability can be reduced by investing the pension amount in a suitable tax-saving instrument.
What is Pradhan Mantri Vaya Vandana Yojna?
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed pension scheme launched by the Ministry of Finance, Government of India, in May 2017. The scheme is administered by the Life Insurance Corporation of India (LIC) and is aimed at providing regular pension income to senior citizens aged 60 years and above. PMVVY is a highly attractive pension scheme for senior citizens as it offers a guaranteed return, death benefit, and tax benefits. It provides a secure and regular income stream during the retirement years, making it a popular investment option for senior citizens in India.
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Benefits of Pension Schemes in LIC
Here is the a host of benefits of Pension Schemes in LIC For Senior Citizens as mentioned below –
- It aims to provide financial security to elderly citizens in their retirement years.
- It offers a guaranteed pension payout for a period of 10 years.
- The scheme also provides a death benefit to the nominee of the policyholder.
- The PMVVY scheme provides an attractive interest rate of 7.4% per annum.
- The scheme also offers the option of premature exit, with a surrender value payable after completion of 3 years of the policy tenure.
- It offers a guaranteed return, death benefit, and tax benefits.
Eligibility Criteria of PMVVY Scheme
There are some of the eligibility listed below of Pension Schemes in LIC For Senior Citizens –
- The scheme is open to all Indian citizens aged 60 years and above.
- The tenure of the policy is 10 years.
- The minimum investment amount for the PMVVY is Rs. 1.5 lakh, and the maximum amount is Rs. 15 lakh.
|
Repayment Type |
Minimum |
Maximum |
|
Yearly |
Rs.12,000 |
Rs.1,11,000 |
|
Half-yearly |
Rs.6,000 |
Rs.55,500 |
|
Quarterly |
Rs.3,000 |
Rs.27,750 |
|
Monthly |
Rs.1,000 |
Rs.9,250 |
Pension Schemes in LIC Plans
|
Mode of Pension |
Minimum Purchase Price |
Maximum Purchase Price |
|
Yearly |
Rs.1,56,658/- |
Rs.14,49,086/- |
|
Half-yearly |
Rs.1,59,574/- |
Rs.14,76,064/- |
|
Quarterly |
Rs.1,61,074/- |
Rs.14,89,933/- |
|
Monthly |
Rs.1,62,162/- |
Rs.15,00,000/ |
In conclusion, the LIC Senior Citizen Pension Scheme is a highly attractive investment option for senior citizens looking for a guaranteed source of income in their retirement years. The scheme offers a competitive interest rate, a guaranteed pension payout for 10 years, and a death benefit to the nominee of the policyholder. It is also completely exempt from GST and offers the option of premature exit with a surrender value payable after completion of 3 years.