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||This scheme offers 3 unique benefits which are:
|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.|