The PM Vaya Vandana Yojana is a combination of insurance and pension scheme that offers senior residents of the country additional sources of income. This pension plan is supplied by Life Insurance Corporation (LIC), which is backed by the Indian government and caters to one’s requirement for post-retirement financial planning. This program is available to people over the age of 60. PMVVY, which was formerly available from 4 May 2017 to 31 March 2020, was recently extended by the government for another three financial years until 31 March 2023. PMVVY provides a ten-year guaranteed pension payout at a set rate. This scheme will provide an annual guaranteed return of 7.4%, which will be paid out monthly for the next ten years.

Features and Benefits of PM Vaya Vandana Yojana

1) Retirement financial security via pension payment

Individuals who have enrolled in the Pradhan Mantri Vaya Vandana Yojana are entitled to a predetermined amount at the conclusion of a specified time decided by the applicant for a maximum term of ten years.

2) Guaranteed returns

For the years 2020-21, the PM Vaya Vandana Yojana will provide an assured rate of return of 7.40 percent per year, which would be revised every year after that.

Annual reset of the assured rate of interest, effective April 1st of each financial year, in accordance with the updated rate of returns of the Senior Citizens Saving Scheme (SCSS), up to a ceiling of 7.75 percent, with a fresh appraisal of the scheme if this level is breached at any time.

3) Options for recurring payments

Individuals can choose from monthly, quarterly, half-yearly, or annual payouts with the plan, depending on their financial needs. Depending on the payment mechanism selected, the first payment must be made as soon as possible once the plan is purchased. For example, if a pensioner has chosen quarterly payment, the first payment should arrive within three months after the policy’s purchase date.

4) Maturity benefit

Pradhan Mantri Vaya Vandana Yojana additionally features a maturity advantage that allows you to get a lump sum payment for the plan’s purchase price as well as the last instalment payout. This benefit is contingent on a pensioner’s survival until the policy’s term expires.

5) Benefit in case of death

If a pensioner dies during the policy term, his or her beneficiary is entitled to a claim for the entire purchase price upon submission of the relevant documentation.

6) Surrender value

Given the financial burden of receiving critical sickness treatment for oneself or a spouse, this scheme also permits a pensioner to renounce the coverage. During a premature exit from the policy term, policyholders might get up to 98 percent of the purchase price.

7) Free lock-in period

If individuals are not satisfied with the contract’s terms and conditions after acquiring a policy, they have 30 days from the date of receipt in the case of an online transaction to return the policy. However, the free lock-in time for offline purchases is 15 days from the date of purchase. When returning this policy, you must also include a rationale for your objection. After deducting any relevant stamp duty or released pension payment, the entire purchase price must be repaid within the free lock-in period.

8) Loan facility

Individuals can get a loan against a PM Vaya Vandana Yojana investment after three successful policy years. Pensioners can borrow up to 75% of the purchase price in the form of a loan. The loan’s interest is deducted from the pension payout at the set loan payback frequency. The interest is due on the due date of the pension payout. Furthermore, the unpaid loan will be recovered from the claim amount at maturity or surrender.

9) Exclusion

The pension-cum-insurance plan also contains a one-of-a-kind exclusion for the purchase price return. If a policyholder commits suicide, the entire purchase price is payable under this exception.

Eligibility Criteria for the PM Vaya Vandana Yojana

Individuals can only buy the Pradhan Mantri Vaya Vandana Yojana if they match the government’s qualifying requirements.

Minimum entry ageMaximum entry agePolicy termMinimum pensionMaximum pension
60No limit10 yearsRs.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.

Application Process of the PM Vaya Vandana Yojana Scheme

Individuals can purchase Pradhan Mantri Vaya Vandana Yojana from Life Insurance Corporation of India both physically and online.


Individuals must go to their nearest or preferred LIC branch to purchase this plan in the offline way. Individuals must complete out the application form and submit it along with the needed documentation and the desired amount after settling on the selected purchase price or pension payment.


Individuals can apply for Pradhan Mantri Vaya Vandana Yojana online using the procedures below for a hassle-free application process.

  • Step 1: Go to the Life Insurance Corporation of India’s official website.
  • Step 2: Next, click the “Pradhan Mantri Vaya Vandana Yojana” option under the “Buy Policy Online” headline.
  • Step 3: A new tab with four alternative options will open. Now, select the ‘Buy Online’ option by pressing the designated button no. 842. A new page will open on the screen, and you must click the ‘Click to Buy Online’ option in the page’s left side corner.
  • Step 4: To continue, you must first create an Access ID. To generate the ID, provide your name, email address, phone number, date of birth, address, and servicing unit. This 9-digit Access ID will be sent to the registered cellphone number through SMS or via email.
  • Step 5: To continue with the application, enter your Access ID and click the ‘Proceed’ option.
  • Step 6: Finally, after deciding on a pension plan under the Pradhan Mantri Vaya Vandana Yojana, fill out the application form, submit scanned copies of all relevant papers, and pay the fee. You will receive an acknowledgement and policy number after successfully submitting the application form.

Documents Required for Pradhan Mantri Vaya Vandana Yojana Application –

Individuals must provide a few basic documents to apply for the pension system, including: –

  • Aadhaar card
  • PAN card
  • Details of the desired bank where the retiree wants the income credited every month

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