Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Pradhan Mantri Vaya Vandana Yojana Summary

This is a pension plan for senior citizens who are 60 years and above. Under this scheme senior citizens will get a guaranteed return of 8% for 10 years. This plan is exempted from Goods and services tax (GST).The scheme will be available for one year from date of launch. LIC has already sold 58,152 policies so far and collected Rs. 2,705 crore since its soft launch on 4th May 2017.

This policy can be purchased online as well as offline. 

The plan UIN is 512G311V01.

Update on 3rd May 2018: The Union Cabinet, chaired by Prime Minister Narendra Modi implemented some major changes under Pradhan Mantri Vaya Vandanan Yojana (PMVVY). They are as follows:

  1. The investment limit has been increased to 15 lakhs under under the Pradhan Mantri Vaya Vandana Yojana (PMVVY). The earlier limit was 7.5 lakhs.
  2. The last date to apply for Pradhan Mantri Vaya Vandana Yojana (PMVVY) has been extended to 31st March, 2020. It was earlier supposed to end on 4th May, 2018
  3. The limit on maximum investment has now revised to per senior citizen(and not per family). So now in a family if both husband and wife are senior citizen. Both can invest 15 lakhs each as purchase price (total 30 lakhs) and can enjoy bonus facility.
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Death Benefit
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Maturity Benefit
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Pension Payments
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Pension Payments

On survival of the policyholder during the policy term of 10 years, pension is payable at the end of each period as per the mode of monthly/ quarterly/ half yearly/ yearly as chosen by the pensioner at the time of purchase.
For every Rs. 1,000 invested in the plan,

  1. Rs. 80 will paid out in the monthly mode
  2. Rs. 80.5 paid out in the quarterly mode
  3. Rs. 81.3 will paid out in the half-yearly mode
  4. Rs. 83 paid out in the yearly mode

Use this Calculator to calculate the Annuity in Pradhan Mantri Vaya Vandana Yojana.

Death Benefit

On death of the policyholder during the policy term of 10 years, the Purchase Price shall be refunded to beneficiary.

Maturity Benefit

On survival of the policyholder to the end of the policy term of 10 years, Purchase price along with final pension installment shall be returned.

Surrender Value

The policy allows premature exit during the policy term under exceptional circumstances like the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases shall be 98% of Purchase Price.


Loan facility is available after completion of 3 policy years. The maximum loan that can be granted shall be 75% of the Purchase Price
For financial Year 2016-17, the applicable interest rate to be charged is 10% p.a.

Free Look period

If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy stating the reason of objections.
In this case the policyholder will get the entire amount after deducting the charges for Stamp duty and pension paid (if any).


Suicide - There shall be no exclusion on count of suicide and full Purchase Price shall be payable.

Tax Benefit

The deposits made in the scheme are exempt from income tax under section 80C of Income Tax Act, 1961. However, the interest earned on the deposit is not exempt from income tax. Provisions of Tax Deduction at Source (TDS) are applicable to the Scheme.

How it works


Let us understand this plan with the help of an example.
Suppose Ramesh with following details has taken this plan. He invests a lumpsum from his savings to ensure a fixed regular income for the next 10 years.

Age: 60 years
Purchase Price: Rs. 7,50,000
Policy Term: 10 years
Purchase Year: 2017
Pension Mode: Monthly

So the benefits received by Ramesh in the Pradhan Mantri Vaya Vandana Yojna will be as follows:

Pension Benefit 
Ramesh will receive Rs. 5,000 as pension amount at the end of every month for 10 years. The rate of interest is 8%. So 8% of Rs. 7,50,000 divided by 12 is what he will get every month. This is of course if he survives the 10 year term.

Maturity Benefit
On completion of 10 years Ramesh will receive the purchase price i.e Rs. 7,50,000 which he had paid to purchase the plan.

Death Benefit
In case Ramesh dies at the age of 65 - Till the age of 65 he will receive monthly pension of Rs. 5,000 and on his death the purchase price i.e Rs. 7,50,000/- will be payable to his nominee. This is true for his death at anytime during the policy term of 10 years.

Surrender Benefit
Suppose at the age of 68 Ramesh needs his money for treatment of some critical illness of self or spouse. In such a scenario, till the age of 68 he will receive monthly pension of Rs. 5,000 and at the age of 68 when he surrenders the policy he will be refunded 98% of purchase price i.e. 98% of 7,50,000 = Rs. 7,35,000.

Check out the regular Annuity Plan from LIC - Jeevan Akshay

If you have any questions on this plan, please drop a comment and we would be happy to help you.


  Minimum Maximum
Age 60 Years (Completed) No Limit
Policy Term 10 Years
Pension Mode Monthly, Quarterly, Half-yearly or Yearly
Purchase Price Rs. 1,50,000 for monthly
Rs. 1,49,068 for quarterly
Rs. 1,47,601 for half-yearly
Rs.1,44,578 for yearly
Rs. 15,00,000 for monthly
Rs. 14,90,683 for quarterly
Rs. 14,76,015 for half-yearly
Rs. 14,45,783 for yearl
Pension Amount Rs. 1,000/- per month
Rs. 3,000/- per quarter
Rs.6,000/- per half-year
Rs.12,000/- per year
Rs. 10,000/- per month
Rs. 30,000/- per quarter
Rs. 60,000/- per half-year
Rs. 1,20,000/- per year

The maximum pension amount criteria in this plans is for per senior citizen.

Mode of pension payment: 

The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System.