The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens, which was launched by the Government of India and is operated by the Life Insurance Corporation (LIC) of India. This scheme provides an assured return of 8% per annum for ten years and the amount is payable monthly, quarterly, half-yearly, or annually as per the choice of the investor. The robustness and flexibility of PMVVY make it one of the most adequate income sources for the elderly.
Understanding PMVVY
This scheme is exclusively for senior citizens aged 60 years and above. The tenure of the policy is ten years, with a minimum and maximum purchase price of Rs. 1,56,658 and Rs. 15,00,000, respectively for a yearly pension. After the completion of the policy tenure, the purchase price is refunded to the policyholder. Moreover, the PMVVY scheme allows premature exit in case of emergencies such as critical health conditions.
PMVVY can be purchased offline as well as online through the LIC India website. Saving and organizing hard copies can be troublesome, hence an important part in digitizing these processes is Umang app download. Umang, or Unified Mobile Application for New-age Governance, is aimed at promoting Indian Government services from Central to Local government bodies and other citizen-centric services in India. After downloading the Umang app, the user can easily access the details about the PMVVY scheme and determine the benefits of investing in it.
Benefits of PMVVY
Considering the return on investment, PMVVY is one of the most beneficial schemes for senior citizens compared to other schemes available in the market. It provides an assured pension based on a guaranteed rate of return of 8% per annum for the next 10 years.
Moreover, the scheme provides the policyholders with an option to choose the payout frequency – monthly, quarterly, half-yearly, or yearly. With a maximum limit of Rs. 15,00,000 investment, an elderly can enjoy a comfortable pension amounting to Rs. 1,00,000 yearly or Rs. 8,300 monthly.
Another striking advantage of PMVVY is the sustainability feature. A person investing in this scheme can be assured of getting a fixed income at regular intervals, irrespective of market fluctuations. Additionally, in case of the death of the policyholder during the policy term, the purchase price will be refunded to the beneficiary.
To sum up, PMVVY is a safe and assured way of securing a regular flow of income post-retirement. This scheme is not only an income source but also provides peace of mind to the senior citizens, knowing that they have a financially secure future.
Summary:
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed pension scheme for senior citizens, promising an assured return of 8% per annum for 10 years. More than being an investment, this scheme provides security, given the steady income it guarantees in the post-retirement period irrespective of market fluctuations. Apart from the offline channel, this scheme can also be digitally accessed via the umang app download, enhancing the user experience through easing processes. However, all investments carry inherent risks and hence, it is highly advised to consider all aspects, seek expert advice if needed, before making the investment decision.
Disclaimer:
Investment in financial markets and schemes such as PMVVY includes market risks. It is advisable for investors to understand these risks thoroughly. The information provided in this article is for educational purposes only and any decision to invest should be made after considering all pros and cons.
