Here are 10 things to know about new PMVVY (Pradhan Mantri Vaya Vandan Yojana) scheme:
1) The PMVVY scheme has been implemented through Life Insurance Corporation of India (LIC) to provide social security during old age and protect elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions.
2) The scheme provides an assured pension based on a guaranteed rate of return of 8 per cent per annum for ten years, with an option to opt for pension on a monthly, quarterly, half-yearly or annual basis.
3) The differential return, the difference between the return generated by LIC from the scheme and the assured return of 8 per cent per annum, is borne by the government as subsidy on an annual basis.
4) As of March 2018, a total number of 2.23 lakh senior citizens were getting regular pension under the Pradhan Mantri Vaya Vandan Yojana (PMVVY).
5) PMVVY can be purchased offline as well as online through Life Insurance Corporation (LIC) of India.
7) On death of the pensioner during the policy term of 10 years, the purchase price will be paid to the beneficiary.
8) Currently, a loan up to 75 per cent of purchase price (amount invested to earn pension) is allowed after three policy years to meet the liquidity needs.
9) The PMVVY scheme also allows for premature exit for treatment of any critical/terminal illness of self or spouse.
10) On such premature exit, 98 per cent of the purchase price will be refunded.