LIC Senior Citizen Pension Schemes

Mentioned are the features and benefits of the Pradhan Mantri Vaya Vandana Yojana, the eligibility criteria of the scheme designed for senior citizens in the country, the minimum pension amount and the payout.

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In India, LIC or Life insurance Corporation of India has been synonymous with life insurance for ages. Established in 1956, LIC was the very first life insurance provider in India, which built its reputation as being not only one of the oldest, but also the largest life insurance provider in the country. Since inception, the life insurance giant has been helping millions of Indians take care of their life insurance needs, one policy at a time. Now counted among one of the most reliable and preferred life insurance provider, LIC offers a wide range of policies catering to different categories of customers, including senior citizens.

Pradhan Mantri Vaya Vandana Yojana

Currently, LIC offers a selection of pension plans which cater to the insurance needs. For senior citizens, the insurer offers one unique pension plan by the name of Pradhan Mantri Vaya Vandana Yojana. This plan was announced by the Indian government on 4 May 2017 for all citizens who are above the age of 60 years, or senior citizens. LIC is the only insurer in India with the licence to operate and offer this scheme. Interested customers can purchase this scheme online, and offline.

Eligibility - Pradhan Mantri Vaya Vandana Yojana

Min. entry age	60 years
Max. entry age	No limit
Policy term	10 years
Min. pension	Rs.1,000/month; Rs.3,000/quarter; Rs.6,000/half-year; Rs.12,000/year
Max. pension	Rs.5,000/month; Rs.15,000/quarter; Rs.30,000/half-year; Rs.60,000/per year

Features & Benefits - Pradhan Mantri Vaya Vandana Yojana

Benefits	Pension payment - The policyholder will be eligible to receive the amount of pension in arrears if they survive plan's policy term of 10 years. Death benefit - If the policyholder passes away before the end of the policy term (10 years), the policy's purchase price will be paid to the nominee. Maturity benefit - If the policyholder survives the policy term, they will be eligible to receive the policy's purchase price + final pension instalment.
Loan facility	Pensioners can avail loan facility under this plan after they have completed 3 policy years. The quantum of loan provided under this facility will not exceed 75% of the policy's purchase price.
Free look period	15 days; 30 days if policy has been purchased online
Payment mode	Payment for the plan an be done on a monthly, quarterly, half-yearly, and yearly mode.
Surrender value	Policyholders can exit the plan before the end of the policy term only under special circumstances like the emergency need of cash for treatment of a critical illness for themselves or their spouse. The maximum surrender value paid in this case will not exceed 98% of the policy purchase price.
Exclusion	In case the policyholder commits suicide before the end of the policy term, the full policy purchase price will be paid.

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