Pradhan Mantri Vaya Vandana Yojana (Plan No: 842) from LIC

Pradhan Mantri Vaya Vandana Yojana is Pension plan for Senior citizen announced by Government of India. This plan is government subsidized pension scheme which will avail guaranteed 8% return in monthly mode and 8.3% return in yearly mode. This plan plan can be purchased from LIC up to 03-05-2018.

Related Link: Pension Calculator

Plan Parameters

Age at Entry60 Years (Completed)
Calculate your Age
Maximum Age at Entry No Limit
Policy Term 10 Years (Fixed)
Pension Receiving Mode Monthly, Quarterly, Half Yearly or Yearly
Proposal Form Download

Pension benefit

  • Pensioner will receive pension amount as per selected mode. Pension will be available on completion of selected mode, for example, in case of monthly mode, pension will be paid on completion of month.

This plan can be purchsed on payment of single one time amount, the minimum and maximum limit of one time lumpsum amount is given in the following table

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

Please use following calculator to calulate pension as per your choice of amount and pension mode.

PMVVY Pension Calculator

Death benefit

  • Deposited amount will be returned to nominee or legal heirs.

Maturity Benefit

  • On compltion of 10 years, the deposited amount along with last due pension will be returned to policy holder.

Policy Surrender

  • In extra-ordinary cases like critical medical emergency of policy holder or spouse, the policy can be surrendered before completion of 10 year term. The surrender value will be 98% of purchase price.

Example of Pradhan Mantri Vaya Vandana Yojana (LIC Table 842)

Let's take example of PMVVY with following details.

Age (Years)60 (Completed)
One Time Deposit7,50,000
Policy Term(Years)10
Purchase Year2017
Pension ModeMonthly

As per above example, pension scheme holder requires to deposit on time lumpsum amount of 7,50,000 and monthly pension will credit in to his/her account on completion of each month from date of purchase for next 10 years.

On completion of 10 years, 7,50,000 will be returned to policy holder. Following table provides year-wise pension details.

Pension Details

Year Age Deposit Amount Monthly Pension Total Pension in a Year Return of Purchase Price
2017 60 750000 5000 60000 0
2018 61 0 5000 60000 0
2019 62 0 5000 60000 0
2020 63 0 5000 60000 0
2021 64 0 5000 60000 0
2022 65 0 5000 60000 0
2023 66 0 5000 60000 0
2024 67 0 5000 60000 0
2025 68 0 5000 60000 0
2026 69 0 5000 60000 0
2027 70 750000

Death Claim Details

In case death before completion of 10 years (Before Year 2027 in this case), purchase price (Rs. 7,50,000) will be returned to policy holder's nominee or legal heirs

Comments & Reviews

Wrote : 24-07-2017 14:02:51

Is it mandatory to purchase the policy through lic agent only or I can purchase it directly from office ?

Replied : 24-07-2017 16:24:53
You may buy this plan online as well as visiting a LIC branch.

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Wrote : 24-07-2017 13:27:18

As per my opinion this scheme is restricted for only senior citizen who may get benefit after their retirement. But in some cases below the 60 and above 40 age group who are unemployed or agriculturist or self employed. Kindly give chances to such people to get this benefit also.

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Wrote : 24-07-2017 10:08:02

Interest rate of 8% is too low for seniors, to get a moderate pension amount one has to deposit huge sums beyond their capacity. Surrendering the policy should be without any precondition as Seniors do not have any other income and depend on their savings to be invested in such schemes. Instead of single policy for max amount it should be of multiple policies each of rupees fifty thousand so that for any urgent expenses seniors can close one of the policies instead of single policy with max amount.

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Wrote : 24-07-2017 09:24:53

We both me & my wife are more than 60 yes old means eligible for this scheme as I understood Can we avail this scheme individually say Rs 722892/per person as yearly mode of pension? Anticipating an early reply Thanks

Replied : 24-07-2017 09:48:50
In case of yearly mode, it will be 722892 per family.

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Wrote : 23-07-2017 20:23:45

The plan is beneficial to senior citizens. But it should be modified to enable both husband & wife to invest Rs 7.50 Lakh each to get respectable amount of pension.

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Wrote : 22-07-2017 20:11:44

Sir I want to know whether interest rate of 8% will remain unchanged during the tenure of policy?

Replied : 22-07-2017 23:59:33
As per plan details, 8% interest will be guaranteed for next 10 years.

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Wrote : 22-07-2017 18:23:46

I got a SMS ON 6/6/2017 FROM lic STATING THAT MY pmvvy pOLICY HAS BEEN REGISTERED and the Policy no.13750xxxx. But , I have not yet received the Policy Certificate. Also I want to know when I will get my half-yearly pension of Rs.30000/= ? Will the six month period be calculated from June-November2017 , and I will get the pension in December,2017 ?

Replied : 23-07-2017 00:05:27
Pension will be due on 6/12/2017.

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Wrote : 22-07-2017 12:38:37

As per calculation given in to Table format the last limit of deposit is 7,22892 Rs. For any pension receiving mode and after 10 years the amount given back is the same or 750000/

Replied : 22-07-2017 12:46:33
Above example is a case of monthly mode and maximum deposit amount in case of monthly mode is 750000, this why it is so. After completion of 10 years purchase price will be returned.

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Wrote : 22-07-2017 12:23:08

Post Office senior citizen scheme is for 5 years duration with 80(C) benefits , whereas this scheme is for 10 years. In which way this scheme is better than post Office Senior Citizen Savings Scheme?

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Wrote : 22-07-2017 12:07:44

SCSS is still providing 8.3% interest rate which seems to be a better option.

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Wrote : 22-07-2017 11:54:38

I wish to deposit Rs. 150000 ( or more ) now and avail the monthly pension after 60 years. I am now 52 years of age. Pls. forward this scenario also.

Replied : 22-07-2017 12:50:02
This plan is available ONLY for those who have completed 60 years of age.

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Wrote : 22-07-2017 11:51:25

If within the stipulated period of 10 year, due to sudden death before completion of the policy period will the policy continue ..? also in such case will the nominee get the entire sum invested ...?

Replied : 22-07-2017 12:51:52
In that case purchase price will be returned to policy holder's nominee and policy will be terminated.

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Wrote : 22-07-2017 11:37:50

Sir, how is it called a Pension Scheme, when it is nothing but a Fixed Deposit scheme. So also with a stricture of 10 year blockibg term. It is a liberal FD scheme for Senior Citizens in par with Post Office FD Scheme. If the Banks are allowed to deal it with same interest rate , there is not much strain for the Senior Citizens to avail it. Anyhow LIC will get a boost in Business and we Senior Citizens who got some money to deposit will get an additional interest than present bank FD.

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Wrote : 22-07-2017 08:48:22

Any tax deduction at source if so can one fill up 15 H form for exemption

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Wrote : 21-07-2017 19:37:42

Any periodical Bonus provision is there to be declared by LIC under PMVVY scheme as like on other LIC policies which are released at maturity of the policy.

Replied : 21-07-2017 20:40:09
This is not a bonus based plan. It will avail pension as per deposited amount and on completion of 10 years, purchase price will be returned.

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Wrote : 21-07-2017 16:04:26

When government say it is pention plan for senior citizens. If both parents are senior citizens in a family, then why one cann not invest 7.5 Lac per senior citizen in this plan? can you please explain what are your reservations on this, because in one of the questions above, you have replied that one can invest only 7.5 Lac per family, in that case for two senior citizens (viz. husband and wife) in a family, how will you apply this rule? please explain

Replied : 21-07-2017 21:20:27
Please download form and read more details about this plan.

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Wrote : 21-07-2017 15:59:59

Why on completion of 10 years only 700000 will be refunded?

Replied : 21-07-2017 20:42:51
There was some typing mistake and the same has been corrected. As written in the text, purchase price will be refunded.

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Wrote : 21-07-2017 13:58:41

In post office ,senior citizen fixed deposit scheme for 5 year deposit interest rate is 8.3%P.A. and deduction under sec 80C is allowed. In what way this scheme is better than post office senior citizen FD.

Replied : 21-07-2017 14:58:19
One apparent difference is interest or pension payment, which will start on completion selected mode, for example if monthly mode is selected, then pension will be available from completion of one month and so on.

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Wrote : 21-07-2017 13:11:44

Plan 842 have any gst?

Replied : 21-07-2017 14:49:11
GST will not be levied on this plan.

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Wrote : 21-07-2017 11:23:57

Could any one let me know if the interest paid is tax free or taxable?

Replied : 21-07-2017 12:32:19
Pension will be added to other income for tax assessment.

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Wrote : 21-07-2017 10:40:41

Can a family of 2 senior citizens can survive only in 5000 per month by investing maximum of 750000 in this age of growing rates? When a policy is given to senior citizens it should be provided completely by considering all pros and cons. What is the use of such a policy where only 5000 is provided to a family consisting of at least 2 senior citizens when more than 5000 is required.

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Wrote : 19-07-2017 01:43:59

LIC earlier announced Barista Pension Ayojana with 9.33 % p.a. with some difference. Has it been discontinued ?

Replied : 19-07-2017 09:54:55
Varistha Pension Yojana is closed for sale.

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Wrote : 16-07-2017 11:26:54

I'm 78 years old , surviving on FD Interest which I accumulated during service period. The way banks are decreasing fd rates it's heart sheering - let me know the uper limit of this scheme ( is there any maximum cap of depositing ? ) Do you deduct any charge at the time of investing ? Ideally we should get the credit of the whole amount which I will deposit - pls clarrify.

Replied : 16-07-2017 11:37:28
Sir, the Uper limit is 7.5 Lakhs and there is no other charges (e.g. GST) at the time of deposit.

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Wrote : 11-07-2017 07:54:29

Weather Deposited Premium amount can be claim as u/s 80C under income tax law,1961.

Replied : 12-07-2017 15:37:35
No, it will not exempted under 80c. It is already a social security scheme (Government subsidized) for senior citizens.

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Wrote : 04-07-2017 19:11:48

agent commission in pradhan mantri vaya vandana yojana plan

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Wrote : 04-07-2017 19:08:54

agent commission in pradhan mantri vaya vandana yojana plan

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Wrote : 01-07-2017 19:56:04

The scheme is of great help to sr the interest rates post offices have been reduced. However the ten year locking period is very harsh on old people.

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Wrote : 13-06-2017 15:05:24

whether the 8% pension policy can directly be taken from LIC office or in case taken from Agent any commission we have to pay or is inclusive. if inclusive then to what percentage.

Replied : 13-06-2017 15:17:14
Pension will be credited into policy holders account directly. Purchase price will include everything.

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Wrote : 12-06-2017 16:45:59

in your table for monthly 5000/ aiso you have shown the same amount 722892. how can this be ?

Replied : 12-06-2017 16:57:33
Thanks for your comments, highlighted error has been corrected.

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Wrote : 11-06-2017 16:56:56

I am 56 now ,will the scheme be in force 4y from now

Replied : 11-06-2017 22:16:00
As per current information, this plan is available up to 03-05-2018.

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