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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 : 14-09-2017 15:30:36

Why the amount for diferent period is diferent ......plz,explain it...I.e.....144,000 for yearly nd 150000 for monthly....

Replied : 15-09-2017 12:18:17
It can be explained as follows.
Suppose there are two investments where one time single amount is deposited in both the cases, one provides 5000 per month for 12 months and the second scheme provides 60,000(in one installment) after 12 months. As 12 monthly 5000s, that is total 60,000 is more than 60,000 which is paid in single installment. This is why monthly mode deposit amount is more than yearly mode deposit.

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Wrote : 07-09-2017 08:46:07

Very unfair to not allow both husband and wife to separately deposit upto specified limit of Rs 7.5 Lakh

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Wrote : 06-09-2017 16:15:04

pls. tell me Service tax is applicable in this plan. if yes so tell me how much percentage.

Replied : 06-09-2017 16:58:12
Service tax is not applicable to this plan.

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Wrote : 30-08-2017 12:50:55

LIC MUST CLARIFY ,IF PENSION IS ADDED AS YEARLY INCOME ? ON MATURITY 10/10D ELIGIBLE PLEASE? LIC & GOVERNMENT MUST RELAX TO SENIOR CITIZENS ON THESE ASPECTS REQUESTED

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Wrote : 29-08-2017 10:19:54

PLZ PROVIDE INCOME TAX PROVISION ON INVESTMENT. WHETHER INCOME TAX REBATE ON SINGLE PREMIUM THIS PLAN IS AVAILABLE. IF SO IN WHICH SEC.

Replied : 29-08-2017 11:04:51
As per our understanding, investment amount is not exempted from taxation as we don't find mention of it and the pension plan is already a subsidized scheme.

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Wrote : 19-08-2017 17:40:26

In whose name cheque should be drawn ?

Replied : 20-08-2017 10:20:20
In favour of "LIC of India".

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Wrote : 13-08-2017 17:56:54

A person whose age is 53yrs Can take benfit of this scheme

Replied : 13-08-2017 19:24:21
This plan is for aged 60 or above. Jeevan akshay 6 is available for age 53.

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Wrote : 13-08-2017 10:26:25

Like other LICI plans, this scheme also should have been tax free. It would then be like Tax Free Bonds and would be fair for Senior Citizens.

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Wrote : 11-08-2017 15:57:27

While we appreciate the Government's concern to mitigate the sufferings of Senior Citizen with decreasing interest rate under fixed deposits , it would have been better to extend the scheme to both the family members ie husband and wife instead of the family concept of one of the members only.

Replied : 11-08-2017 22:34:09

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Wrote : 10-08-2017 04:27:37

I am NPS retiree and a sum of Rs 279000/_are lying with NSDL and I want to deposit my balance PF in senior citizen scheme. Can I deposited in PM senior citizen scheme.

Replied : 11-08-2017 22:51:37
Yes, a person age 60 or above can deposit and take benefit of this plan.

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Wrote : 04-08-2017 01:47:58

Hi why this scheme is only valid for one year its not right at all you mean to say after one year no one will become a senior citizen ,this is absolutely not right it should be continue all the time because everyday many indian citizens are becoming senior citizens and it should not be 750000 rs per family it should be 750000 per senior citizen in the family to coverup the old age expenses government should think about their indian senior citizens.

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Wrote : 03-08-2017 19:36:47

please confirm whether pradhan mantri vaya vandana yojana pension received is taxable or not under IT ACT.

Replied : 04-08-2017 00:17:02
Pension will be taxable.

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Wrote : 25-07-2017 16:21:05

I am 64 years old and my wife is 61 years old. Can we both take this pension scheme for Rs 7.5 lakh each to get Rs 5000/- PM pension each separately. Thus we both will invest Rs 15 lakh.

Replied : 25-07-2017 18:21:37
Combine limit for a family is 7.5 Lakhs.

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Wrote : 25-07-2017 13:23:26

Yes I agree, the surrender terms should be unconditional, they are not giving extraordinary benefit thru this...Very marginal interest is being offered, when lic charge 10% interest rate for loan availed thru this after 3 years what consideration offered to SR citizen? If tomorrow interest rate goes up thru other channels will lic revise and give that benefits to the policy holder? I think govt should have mercy to SR. Citizens

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Wrote : 25-07-2017 13:15:18

Can we invest in part ? . I mean first time some amount like 2,50,000 & there after 2 lacs and so on . Secondly can my wife invest part of 7.5 lacs say 2 lacs and balance in my name. As it is for Family.

Replied : 25-07-2017 13:17:30
Yes, it can be done.

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Wrote : 25-07-2017 12:50:18

Im planning to take this scheme for my mother who is running 64 yrs. I would like to know whether an online policy would be cheaper rather than through an agent.

Replied : 25-07-2017 12:55:39
Please follow this online purchase link and know more.

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Wrote : 25-07-2017 12:38:13

In yearly interest option if policy holder die before completing one full year , he or she would not get any interest ,just purchased money only be returned . Is it true ? If his/her spouse is also a senior citizen then what would be ?

Replied : 25-07-2017 13:10:46
Yes, pension will be available on completion of selected mode duration, for example, if yearly mode has been selected then, first pension will be available on completion 1 years from date of purchase.

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Wrote : 25-07-2017 12:07:13

We are totally aghast when we came to know that this scheme is available for a family !!! We senior citizens are already suffering a lot due to the low interest rate from Banks. Government should take action to protect the senior citizens, especially when we are very old - over 75 and are unable to meet both ends meet to eat, sleep and on top of it pay for the exorbitant medical bills. No insurance schemes allow us to claim our expenses - always with some clause they deduct and restrict the total amount.. the max insurance given is only 3 lacs. Government measures to overlook the interest of senior citizens is very sad !! Hindu Dharma begins with "Mata, Pitha, Guru, Deivam" where is the protection of Mata and Pitha in these days ? This scheme should be made for individual - that means father and mother separately. At least it will give some relief. I never expected the Government I voted for will throw us in total disarray in our last part of our life.

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Wrote : 25-07-2017 10:43:03

I am interested for plan 842 onlie.Please let me know the procedure. Thanks Hemp Prosad Roy

Replied : 25-07-2017 13:20:20
Please visit online purchase link for online application.

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Wrote : 25-07-2017 09:11:56

Income derived from this is not TAX FREE

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Wrote : 24-07-2017 21:38:41

SIR, THIS SCHEME IS RATHER BEST SUITED FOR GOVT SERVANTS MPS MLA . WHERE IS SCHEME FOR DYING FARMERS , FARM LABORS? FOR 80 0/0 FARMING POPULATION OF INDIA IS USELESS.WHEN FARMERS HAVE NO FUNDS TO BUY SEED/ FERTILIZERS THEN FROM WHERE THEY BRING DEPOSIT RS 150000? WILL GOVT EVER THINK OF POOR?

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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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