LIC Senior Citizen Pension Scheme: Know this amazing scheme with assured returns; subscribe for immediate pension

LIC Senior Citizen Pension Scheme: If you are a senior citizen, you must know about this amazing scheme offered by the Life Insurance Corporation of India (LIC) which gives immediate pension for senior citizens 60 years and above. Pradhan Mantri Vaya VandanaYojana (PMVVY) can be purchased by paying a lump sum amount. The plan provides for pension payments of stated amount for the policy term of 10 years, with return of purchase price at the end of 10 years.

The pension payment modes are available on a monthly, quarterly, half-yearly and yearly basis.

Pension will be paid at the end of each period as per payment mode chosen starts as early as next month if monthly mode is chosen.

On the death of the pensioner at any time during the term of 10 years, the purchase price will be refunded to the legal heirs/nominees.

Only resident Indians are eligible to purchase this plan.

The scheme provides an assured rate of return of 7.40 percent for the period of 10 years. The state insurer made available this plan from 26 May 2020 and will be available for purchase till 31 March 2023. It can be availed via online or off-line mode. 

In a major relief to the senior citizens, the government of India had earlier this year given approval for another extension of the scheme by three years up to 31 March 2023. The Modi government has also offered to pay to the extent of the difference between the market return generated by LIC and the guaranteed return of 7.40% per annum initially for the year 2020-21.

PMVVY is a social security scheme for senior citizens offered by the Life Insurance Corporation of India (LIC). It is intended to give an assured minimum pension to for 10 years based on an assured return on the purchase price/ subscription amount. It also offers a death benefit in the form of return of purchase price to the nominee. This policy was open for a short period and was later extended to 31 March 2020.

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The expenses on managing the scheme are capped at 0.5 per cent of assets under management per annum for the first year of the scheme and 0.3 per cent p.a. for second year onward for the next nine years.