What is Pradhan Mantri Vaya Vandana Yojana (PMVVY)?

    In a move to bolster financial stability for India’s senior citizens, the Government of India has rolled out the Pradhan Mantri Vaya Vandana Yojana (Modified-2020). This initiative aims to provide a modified pension rate, with the sale period extended for an additional three years from the Financial Year 2020-21 until 31st March 2023.

    The Ministry of Finance takes the responsibility to review and decide the guaranteed pension rates for policies sold during each financial year.

    Notably, the scheme offered an assured pension rate of 7.40% per annum, payable monthly, for policies purchased up until 31st March 2021. Exclusively authorized to operate this plan, the Life Insurance Corporation (LIC) of India ensures seamless accessibility for interested citizens.

    Prospective policyholders can either visit a LIC branch to purchase the scheme offline or conveniently log on to to purchase online. Emphasizing the importance of financial security for the elderly, the Pradhan Mantri Vaya Vandana Yojana strives to create a reliable safety net for the golden years of our loved ones.

    Benefits of Pradhan Mantri Vaya Vandana Yojana

    The Pradhan Mantri Vaya Vandana Yojana offers a myriad of benefits tailored to ensure financial security and peace of mind for our senior citizens. The key advantages of this pension scheme include:

    1. Pension Payment: Pensioners who survive the 10-year policy term will receive pension payments in arrears, according to the chosen payment mode. This ensures a steady income flow throughout the policy’s duration, providing financial stability during their golden years.
    2. Death Benefit: In the unfortunate event of a pensioner’s demise during the 10-year policy term, the scheme ensures that the Purchase Price is refunded to the designated beneficiary. This feature offers a safety net to the pensioner’s family, providing them with financial support in difficult times.
    3. Maturity Benefit: Upon the pensioner’s survival until the end of the policy term, the scheme offers a dual benefit of refunding the Purchase Price along with the final pension instalment. This feature acts as a financial reward for the pensioner, allowing them to make the most of their investments and enjoy a worry-free post-retirement life.

    Eligibility Conditions and Other Restrictions

    1. Minimum Entry Age: 60 years (completed)
    2. Maximum Entry Age: No limit
    3. Policy Term: 10 years

    Pension Amounts

    Minimum Pension Maximum Pension
    Monthly ₹1,000 ₹9,250
    Quarterly ₹3,000 ₹27,750
    Half-yearly ₹6,000 ₹55,500
    Yearly ₹12,000 ₹1,11,000

    Total Purchase Price Limit

    The total amount of purchase price under all the policies taken under this plan, as well as policies under Pradhan Mantri Vaya Vandana Yojana (with UIN: 512G311V01 and UIN: 512G311V02), is capped at ₹15 lakhs for a senior citizen. This ensures that the financial benefits are well-distributed among the elderly population, providing a fair opportunity for all to secure their future.

    Payment of Purchase Price

    The scheme can be purchased by paying a lump sum Purchase Price. The pensioner has the option to choose either the amount of pension or the Purchase Price.

    Minimum and Maximum Purchase Price Under Different Modes of Pension:

    Mode of Pension Minimum Purchase Price Maximum Purchase Price
    Yearly ₹1,56,658 ₹14,49,086
    Half-yearly ₹1,59,574 ₹14,76,064
    Quarterly ₹1,61,074 ₹14,89,933
    Monthly ₹1,62,162 ₹15,00,000

    Please note that the Purchase Price to be charged shall be rounded off to the nearest rupee. This ensures simplicity in calculating purchase prices and enables pensioners to manage their finances more effectively.

    Mode of Pension Payment

    The available modes of pension payment are monthly, quarterly, half-yearly, and yearly. Pension payments will be made through NEFT or Aadhaar Enabled Payment System. A unique Aadhaar number validation is required for purchasing a policy under this government-subsidized scheme.

    First Installment of Pension

    The first pension instalment will be paid depending on the chosen mode of pension payment:

    • 1 year from the purchase date for the yearly mode
    • 6 months from the purchase date for the half-yearly mode
    • 3 months from the purchase date for the quarterly mode
    • 1 month from the purchase date for the monthly mode

    Sample Pension Rates per ₹1000 Purchase Price

    Mode of Pension Pension Rate per ₹1000 Purchase Price
    Yearly ₹76.60 p.a.
    Half-yearly ₹75.20 p.a.
    Quarterly ₹74.50 p.a.
    Monthly ₹74.00 p.a.

    Please note that pension instalments are rounded off to the nearest rupee, and these rates are age-independent.

    Surrender Value

    The scheme permits premature exit during the policy term under exceptional circumstances, such as the pensioner or their spouse requiring funds for the treatment of critical or terminal illnesses. In such cases, the surrender value payable is 98% of the Purchase Price, providing a safety net for the pensioner during times of unforeseen medical emergencies.


    • Loan Facility: Available after the completion of 3 policy years.
    • Maximum Loan Amount: 75% of the Purchase Price.
    • Interest Rate: Determined at periodic intervals. For loans sanctioned till 30th April 2021, the interest rate is 9.5% p.a. for the entire loan term.
    • Loan Interest Recovery: Recovered from the pension amount payable under the policy.
    • Loan Outstanding Recovery: Recovered from the claim proceeds at the time of exit.
    • Interest Rate Method: Based on the method approved by IRDAI.


    Statutory taxes, such as Goods and Services Tax (GST), will be levied as per the tax laws and rates applicable from time to time. The amount of tax paid will not be considered for the calculation of benefits payable under the plan.

    Free Look Period

    Duration: 15 days (30 days for policies purchased online).

    If a policyholder is not satisfied with the “Terms and Conditions” of the policy, they may return it to the Corporation within the Free Look Period, stating their objections.

    Refund: The refunded amount will be the Purchase Price deposited by the policyholder, minus the charges for stamp duty and any pension paid during the Free Look Period.

    In conclusion, the Pradhan Mantri Vaya Vandana Yojana is a crucial pension scheme introduced by the Government of India to ensure financial stability for senior citizens.

    With features like flexible pension payment modes, age-independent pension rates, loan facilities, and provisions for premature exit, this policy caters to the diverse needs of the elderly population.

    The policy safeguards the interests of pensioners and their families during emergencies and ensures a steady flow of income during their golden years. Considering the ever-increasing cost of living and medical expenses, a policy like the Pradhan Mantri Vaya Vandana Yojana is indispensable in providing much-needed financial security to our elderly citizens.

    It enables them to lead a dignified and stress-free post-retirement life, while also serving as a reliable safety net for their families.

    Disclaimer: While we make every effort to update the information, products, and services on our website and related platforms/websites, inadvertent inaccuracies, typographical errors, or delays in updating the information may occur. The material provided on this site and associated web pages is for reference and general information purposes only. In case of any inconsistencies between the information provided on this site and the respective product/service document, the details mentioned in the product/service document shall prevail. Subscribers and users are advised to seek professional advice before acting on the information contained herein. It is recommended that users make an informed decision regarding any product or service after reviewing the relevant product/service document and applicable terms and conditions. If any inconsistencies are observed, please reach out to us.

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