Outlook Money
The PMVVY plan is provided by the Life Insurance Corporation (LIC) of India for post-retirement financial planning.
The scheme offers an assured return of 7.40 per cent per annum, reset annually.
The policyholder can receive the pension in monthly, quarterly, half-yearly and yearly modes till the policy ends.
The policyholder will receive the purchase price in a lump sum at the end of the policy term.
The beneficiary will receive the full purchase price if the pensioner passes away before the policy term expires.
A 2 per cent penalty will be levied on the total deposits in case of premature exit; the rest will be returned to the policyholder.
PMVVY provides a 15-day free-look period, during which the policyholder can unsubscribe from the scheme without any penalty.
PMVVY provides a minimum monthly pension of Rs 1,000 and a maximum of Rs 1.1 lakh, depending on the purchasing price.
Compiled By Himani Verma