Government of India has announced Pradhan Mantri Vaya Vandana Yojana for citizen age 60 years and above. LIC of India has been given the sole privilege to operate this scheme. It has been decided to launch Pradhan Mantri Vaya Vandana Yojana on 4th May 2017. The scheme shall be available for one year from date of launch.
1. Pension Payment:
On survival of the Pensioner during the policy term of 10 years, pension in arrears (at the end of each period as per mode chosen) shall be payable.
2. Death Benefit:
On death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to beneficiary.
3. Maturity Benefit:
On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension installment shall be payable.
1. Minimum Entry Age: 60 years (completed)
2. Maximum Entry Age: No limit
3. Policy Term : 10 years
4. Minimum Pension: Rs. 1,000/- per month
Rs. 3,000/- per quarter
Rs.6,000/- per half-year
Rs.12,000/- per year
5. Maximum Pension: Rs. 5,000/- per month
Rs. 15,000/- per quarter
Rs. 30,000/- per half-year
Rs. 60,000/- per year
Ceiling of maximum pension is for a family as a whole i.e. total amount of pension under all the policies allowed to a family under this plan shall not exceed the maximum pension limit. The family for this purpose will comprise of pensioner, his/her spouse and dependants.
The scheme can be purchased by payment of a lump sum Purchase Price. The pensioner has an option to choose either the amount of pension or the Purchase Price.
The minimum and maximum Purchase Price under different modes of pension will be as under:
|Mode of Pension||Minimum Purchase Price||Maximum Purchase Price|
|Yearly||Rs. 1,44,578/-||Rs. 7,22,892/-|
|Half-yearly||Rs. 1,47,601/-||Rs. 7,38,007/-|
|Quarterly||Rs. 1,49,068/-||Rs. 7,45,342/-|
|Monthly||Rs. 1,50,000/-||Rs. 7,50,000/-|
The Purchase Price to be charged shall be rounded to nearest rupee.
The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System.
The first instalment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.
|Policy Anniversary coinciding/ following completion of ages||Percentage of Sum Assured to be paid as Survival Benefit|
|Option 1||Option 2||Option 3||Option 4|
20 to 24 years
|Nil||5% each year||10% each year||15% each year|
Policyholder has to opt for any one of the options above at the proposal stage only.
Maturity Benefit: In case of Life Assured surviving the stipulated date of maturity, a fixed percentage of Sum Assured shall be payable on maturity for inforce maturing policies. The fixed percentage under different Options is as below:
|Maturity Age||Option 1||Option 2||Option 3||Option 4|
In addition to the above, vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall also be payable.
Participation in Profits: The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is inforce.
Final Additional Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity.
LIC's Premium Waiver Benefit Rider (UIN: 512B204V01), on the life of proposer may be opted for by payment of additional premium.
For more details on the above Rider, refer to the Rider brochure or contact LIC's nearest Branch Office.
1. Eligibility Conditions and Other Restriction:
2. Minimum Sum Assured : Rs. 75,000
3. Maximum Sum Assured : No Limit
(The Sum Assured shall be in multiples of Rs. 5,000 from Sum Assured Rs. 75,000 to Rs. 100,000 and Rs. 10,000/- for Sum Assured above Rs 100,000)
4. Minimum Age at entry :  days (last birthday)
5. Maximum Age at entry :  years (last birthday)
6. Minimum/ Maximum Maturity Age :  years (last birthday)
7. Policy Term : [25 – Age at entry] years
8. Premium Paying Term (PPT) : [20 – Age at entry] years
Date of commencement of risk:
In case the age at entry of the Life Assured is less than 8 years, the risk under this plan will commence either one day before the completion of 2 years from the date commencement of policy or one day before the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately.
Date of vesting:
The policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly mode (through ECS only) or through SSS mode over the premium paying term of the policy.
However, a grace period of one month but not less than 30 days will be allowed for yearly, half-yearly, quarterly modes and 15 days for monthly mode of premium payment.
Following are some of the sample tabular premium rates (exclusive of service tax) under different Options per Rs. 1000/- Sum Assured:
Yearly mode - 2% of Tabular Premium
Half-yearly mode - 1% of Tabular premium
Quarterly, Monthly, SSS - NIL
High Sum Assured Rebate:
Sum Assured (SA) Rebate (Rs.)
75,000 to 1,90,000 - Nil
2,00,000 to 4,90,000 - 2 per thousand SA
5,00,000 and above - 3 per thousand SA
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 2 consecutive years from the date of first unpaid premium by paying all the arrears of premium together with interest (compounding half-yearly) at such rate as fixed by the Corporation from time to time, subject to submission of satisfactory evidence of continued insurability.
The Corporation reserves the right to accept at original terms, accept at revised terms or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated to the Policyholder.
Revival of rider, if opted for, will be considered along with revival of the Basic Policy and not in isolation and shall be subject to underwriting.
For policies with premium paying term less than 10 years if after at least two full years' premiums have been paid and for policies with premium paying term 10 years or more if after at least three full years' premiums have been paid, and any subsequent premiums be not duly paid, this policy shall not be wholly void, but shall continue as a paid-up policy.
The Sum Assured on Death under paid–up policy shall be reduced to such a sum called "Death Paid-up Sum Assured" and shall be equal to [(Number of premiums paid/Total Number of premiums payable) x Sum Assured on Death]
The Sum Assured on Maturity under paid-up policy called as "Maturity Paid-up Sum Assured" shall be equal to [(Number of premiums paid/Total Number of premiums payable) x (Sum Assured on Maturity plus Total Survival Benefits payable under the policy)] less Total amount of Survival Benefits already paid under the policy.
The policy so reduced shall thereafter be free from all liabilities for payment of the premiums, but shall not be entitled to participate in future profits. However, the vested Simple Reversionary Bonuses shall remain attached to the reduced paid up policy.
In the case of a paid up policy, no future survival benefits shall be payable and the applicable paid up value along with the vested Simple Reversionary Bonuses, if any, shall be payable only in lump-sum on the expiry of policy term or on death of life assured, if earlier.
Rider shall not acquire any paid-up value and the rider benefit ceases to apply, if policy is in lapsed condition.
The policy can be surrendered at any time during the policy term provided premiums have been paid for atleast two consecutive years if PPT is less than 10 years and for atleast three consecutive years if PPT is 10 years or more.
The Guaranteed Surrender Value shall be equal to the total premiums paid (excluding taxes, extra premium and rider premium, if any) multiplied by the Guaranteed Surrender Value factor applicable to total premiums paid, less any Survival Benefits already paid under the policy. These Guaranteed Surrender Value factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered and are specified as below:[picture here]
In addition, the surrender value of any vested Simple Reversionary Bonuses, if any, shall also be payable, which is equal to vested bonuses multiplied by the surrender value factor applicable to vested bonuses. These factors will depend on the policy term and policy year in which policy is surrendered and are specified as below:[picture here]
Corporation may, however, pay Special Surrender value, if it is more favorable to the Policyholder.
Loan can be availed under the policy provided the policy has acquired surrender value and subject to the terms and conditions as the Corporation may specify from time to time.
Taxes including Service Tax, if any, shall be as per the Tax laws and the rate of tax shall be as applicable from time to time.
The amount of tax as per the prevailing rates shall be payable by the Policyholder on premiums including extra premiums, if any. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.
If the Policyholder is not satisfied with the "Terms and Conditions", the policy may be returned to us within 15 days from the date of receipt of the policy bond stating the reasons of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium (for basic plan and rider, if any) for the period on cover, expenses incurred on medical examination and special reports (for basic plan), if any, and stamp duty charges.
Suicide Clause: This policy shall be void
If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim under this policy except for 80% of the premiums paid excluding any taxes and extra premium, if any, provided the policy is inforce. This clause shall not be applicable in case age at entry of the Life Assured is below 8 years.
If the Life Assured (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the premiums paid till the date of death (excluding any taxes and extra premium, if any,) or the surrender value shall be payable. The Corporation will not entertain any other claim under this policy. This clause shall not be applicable:
in case the age of the Life Assured is below 8 years at the time of revival; or
for a policy lapsed without acquiring paid-up value and nothing shall be payable under such policies.