Pradhan Mantri Vaya Vandana Yojana (PMVVY) and LIC Dhan Varsha Life Insurance Plan will end for investment on March 31, 2023. Hence, individuals interested in these plans should hurry and buy the policies before it closes. While Pradhan Mantri Vaya Vandana Yojana is an insurance-cum-pension initiative to provide assured pensions to senior citizens in their retirement, LIC Dhan Varsha is a non-linked, non-participating, individual, savings life insurance plan.
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Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Under PMVVY, investors get a guaranteed pension at the rate of 7.4 percent for 10 years which can be between Rs 1,000 to Rs 9,250 per month. The payment can be done after a month, 3 months, 6 months, or after a year of investment.
The following benefits are payable under this policy:
Pension benefit
On survival of the pensioner during the policy term, amount of pension installment as mentioned in the schedule is payable in arrears (at the end of each period as per the mode chosen). This benefit ceases on death of the pensioner.
Total amount of purchase price under all the policies under this plan, and all the policies taken under Pradhan Mantri Vaya Vandana Yojana allowed to a senior citizen do not exceed Rs 15 lakh.
Death benefit
On death of the pensioner during the policy term, the purchase price is refunded to the beneficiary.
Maturity benefit
On pensioner surviving to the stipulated date of maturity, the purchase price along with the final pension installment is refunded to the pensioner.
LIC Dhan Varsha plan
This plan provides financial support for the family in case of unfortunate death of the life assured during the policy term. It also provides guaranteed lumpsum amount on the date of maturity for the surviving life assured. This is a close ended plan and hence is available for sale only till today i.e. March 31, 2023.
Benefits payable under an in-force policy are:
Death benefit
Death benefit payable, on death of the life assured during the policy term
after the date of commencement of risk but before the date of maturity,
will be “Sum Assured on Death” along with accrued guaranteed additions.
Maturity benefit
On life assured surviving the stipulated date of maturity, “Basic Sum
Assured” along with accrued guaranteed additions will be payable.
Guaranteed additions
The guaranteed additions will accrue at the end of each policy year,
throughout the policy term and shall depend on the option chosen, basic
sum assured and the policy term.
How can policyholders pay the premiums?
Premiums can be paid in single (lumpsum) payment mode only. Here's a sample illustrative single premiums for basic sum assured of Rs 10 lakh for standard lives:
| Single Premium for Basic Sum Assured : Rs 10,00,000 | ||||
| Option 1 | Option 2 | |||
| Age | Policy Term | Policy Term | Policy Term | Policy Term |
| 10 years | 15 years | 10 years | 15 years | |
| 10 | 9,53,500 | 8,84,300 | 8,01,100 | 7,27,600 |
| 20 | 9,54,550 | 8,85,500 | 8,28,850 | 7,56,300 |
| 30 | 9,55,200 | 8,86,750 | 8,48,950 | 7,98,700 |
| 40 | 9,58,800 | 8,93,050 | 9,78,250 | |
| 50 | 9,71,800 | 9,13,200 | ||
| 60 | 9,99,000 | 9,57,900 | ||
The policy can be surrendered by the policyholder at any time during the policy term.
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