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Invest In LIC's Pradhan Mantri Vaya Vandana Yojana Before It Closes On March 31

The deadline to invest in LIC Pradhan Mantri Vaya Vandana Yojana is March 31. Read on to know the details!

<div class="paragraphs"><p>LIC's Pradhan Mantri Vaya Vandana Yojana</p></div>
LIC's Pradhan Mantri Vaya Vandana Yojana

As one nears retirement, taking appropriate steps to maintain a certain standard of living becomes a question of utmost importance. To solve this concern, the government has been introducing several pension plans to provide social security to senior citizens. The Pradhan Mantri Vaya Vandana Yojana pension programme is one such scheme.

The government introduced this pension programme in 2017 with a view to provide senior residents with retirement benefits. However, the investment deadline for this plan has been set as March 31, 2023. Those who want to take advantage of this scheme should be aware of its benefits and other related information.

Pension Plans Of Pradhan Mantri Vaya Vandana Yojana

Pension facility under the PMVVY plan is paid in accordance with the pay-out option that the investor chooses at the time of investing in the scheme. The plan enables investors to choose how often they get a pension: monthly, quarterly, half-yearly, or annually.

Under the yearly pension option, the policy can be bought for Rs 1,56,658 for an annual pension of Rs 12,000 or at Rs 14,49,086 for an annual pension of Rs 1,11,000. The table below shows the different modes of pension as well the corresponding minimum and maximum investment amounts.

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Source: https://licindia.in/Products/Pension-Plans/Pradhan-Mantri-Vaya-Vandana-Yojana1

 *Please note that once a pension mode is selected, it cannot be changed afterwards.

Pension Benefit Of Pradhan Mantri Vaya Vandana Yojana

Pension arrears will be paid if the retiree lives past the ten-year insurance term. However, if a pensioner dies during the policy's term, the purchase amount is reimbursed and paid to the nominee or the policy's legal heirs. Moreover, the plan allows an investor to withdraw their funds before maturity if they are diagnosed with a serious disease. Moreover, they can also withdraw funds for their spouse or take a loan against the policy after three years of purchasing it.

Interest Rate On Pradhan Mantri Vaya Vandana Yojana

The PM Vaya Vandana Yojana provides a 7.4% annualised interest rate with a monthly payout option. The LIC website states, "For Financial Year 2022-23, the Scheme shall provide an assured pension of 7.40% p.a. payable monthly. This assured rate of pension shall be payable for the full policy term of 10 years for all the policies purchased till 31st March, 2023."