Pages

Total Pageviews

Wednesday, February 21, 2018

Pradhan Mantri Vaya Vandana Yojana (PMVVY) - All You Need To Know



Life Insurance Corporation(LIC)started offering PMVVY scheme from May 2017.

The PMVVY scheme was supposed to remain open for subscription for one year. Now, with the proposed extension, it scheme will remain open till March 2020.

Financial planners say PMVVY offers more avenues to senior citizens to earn a steady regular income at a time when fixed deposit interest rates are not that attractive.

PMVVY can be purchased offline as well as online through Life Insurance Corporation (LIC) of India.

Currently, the maximum amount the amount a senior citizen can invest is Rs. 7.5 lakh. The proposed change in Budget 2018 will double it to Rs. 15 lakh.

The scheme provides an assured return of 8 per cent per annum payable monthly (equivalent to 8.30 per cent per annum) for 10 years.

The pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly/quarterly/half-yearly/yearly mode as chosen by the pensioner at the time of purchase.

Currently, in the monthly mode, an investor in the PMVVY scheme gets a monthly interest rate of Rs. 5,000 if he/she invests Rs. 7.5 lakh.

No comments:

Post a Comment