Pradhan Mantri Vaya Vandhana Yojana(PMVVY) – LIC’s Pension Plan 842 Review

By | June 10, 2017

It ‘s been a great news for pensioners. As per the promise by the central Government during the financial budget 2017, they have launched a new scheme named “Pradhan Mantri Vaya Vandhana Yojana” specially for Pensioners. This plan is available from LIC with 8% guaranteed pension.

Features of the Plan:

  • Minimum age for the entry of this plan is 60 years.
  • There is no maximum age limit for this plan.
  • You are eligible to receive the monthly pension of 8%.
  • Minimum pension for the month is INR 1000, quarterly is INR 3000, half early is INR 6000 and yearly is INR 12,000.
  • Minimum pension for the month is INR 5000, quarterly is INR 15000, half early is INR 30000 and yearly is INR 60,000.
  • Only LIC is allowed to sale this product.
  • As it is limited plan version, you can purchase this product from 4 th May 2017 to 3 rd May 2018.
  • Surrender option is available in the policy for the policy period of one year during any certain circumstances like the policy holder requires money for the critical illness / treatment for himself or the family members.
  • 98% of purchase price will be paid, when policy is surrendered.
  • Loan facility is available in this policy after completion of 3 years. Maximum loan payable will be 75% of the payable price.
  • If the pensioner commits suicide during the policy period, his nominee will receive the purchase price.

Investments in Pradhan Mantri Vaya Vandana Yojana

This is called so called as Immediate Pension Plan. As soon as you invest in the plan, the pension will starts from the next month. Below is the chart for minimum and maximum investment in the plan.

Pension Mode Minimum Pension Minimum Investment Maximum Pension Maximum Investment
Monthly Rs.1,000 Rs.1,50,000 Rs. 5,000 Rs.7,50,000
Quarterly Rs.3,000 Rs. 1,49,068 Rs. 15,000 Rs.7,45,342
Half Yearly Rs.6,000 Rs. 1,47,601 Rs. 30,000 Rs.7,38,007
Yearly Rs.12,000 Rs. 1,44,578 Rs. 60,000 Rs.7,22,892


Here, the pension applies to whole family means self, spouse and dependents.

Benefits of the plan:

Policy Period:

The policy holder can choose his pension term either monthly, quarterly, half yearly or annually.

Death Benefit:

On the death of the pensioner during policy term, the policy will be transferred to the nominee.

Maturity Benefit:

Final Installment and Purchase price will be paid if the pensioner survives over the entire policy term.

Reviews of Pradhan Mantri Vaya Vandana Yojana:

No Tax:

Tax is always an additional benefit for the pension plan. But, considering this plan is a total failure. There will not be any tax exemption for this product.


This product mainly fails to understand the requirements of senior citizens. Liquidity is available in exceptional case in this product.


In this product, the pension will remain same for every month. As inflation rises, it is tough to manage the expenses with this pension.

Maximum Ceiling:

The maximum pension one can avail under this plan is 5,000 per month. The maximum investment of the plan is 7,50,000. It clearly shows that one cannot survive with this product during the pension time.


This product will provide only 8% of the returns. As tax and inflation goes high, it is hard to match the returns with the other product. This product is quite interesting when compared to FD.

2 thoughts on “Pradhan Mantri Vaya Vandhana Yojana(PMVVY) – LIC’s Pension Plan 842 Review

  1. kishore kumar sharma

    I have taken a policy under pradhan mantri vaya vandana yojana on 8/3/2018 its firt pension payment is due on 8/04/2018 but till 11/04/2018 the pension payment not started.


    i have purchased a policy worth rupees 15 lakhs under pmvvy yojna on 26-07-2018 vide policy no./ receipt no.208335883 dtd. 26-07-2018, but ORIGINAL POLICY has not been received so far.
    LIC BRANCH- Bhoot nath complex, Lucknow


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