The government has created a new pension plan that will ease the retirement lives of senior citizens.
The Pradhan Mantri Vaya Vandana Yojna was launched by the Government on 21 July 2017. The scheme was launched softly on May 4, 2017, but it is now officially announced. The policy will be available one year after its announcement. Senior citizens of minimum 60 years old and above are the main beneficiaries.
The amount that will be paid into the pension plan over the next 10 years is 8%.
Further, there is no maximum amount that can be enrolled in the scheme. Already stated is the mode of payment for pensions, which will be via NEFT or Aadhaar Enabled Payments System.
The beneficiary will be reimbursed the cost of any error made by the pensioner.
Maximum loan amount is 75% of purchase price
This is important to remember. The loan facility will become available after the customer has completed 3 policy years. The rate of interest for the loan amount, which is 10% per annum payable half-yearly, shall be determined at periodic intervals.
In emergency situations, or if there is any possibility, the pensioner may be subject to a 2% charge and the remainder of the purchase price will be due.
The policy will be subject to the applicable tax laws and rates.
HOW DO I ENTER THE POLICY?
The scheme is available for purchase online or offline through LIC (Life Insurance Corporation of India), which is the sole operator.
LIC has posted a pdf file on its official website in which it clearly states that the Policy is subject to the Definitions of Benefits, Conditions Related to Servicing Aspects. Other Terms and Conditions and Statutory Provisions. The Schedule and any endorsements placed by the Corporation on the Policy are considered part of the Policy.
The government has made every effort to clarify all points (in english and in hindi) so that there is no confusion when you enter the policy.
The customer will have the right to a free look period. This means that if the policy holder does not like the terms and conditions of the policy, he/she may return it within 15 days (offline mode), or 30 days (online mode).