Pradhan Mantri Vaya Vandana Yojana

Pradhan Mantri Vaya Vandana Yojana (2020 Modified) is a simplified pension plan subsidized by the Government of India through LIC. The LIC Pradhan Mantri Vaya Vandana Yojana comes with a modified pension rate and is available for sale till 31st March 2023. These rates may be updated by the Finance Ministry at the start of each year. For the year 2022-23, the assured rate of monthly pension will be 7.4% per annum. 

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This pension scheme was introduced for senior citizens after the success of a similar scheme called the LIC Varishtha Pension Bima Yojana. LIC is solely responsible for the sale of these schemes.

Key Features of the Pradhan Mantri Vaya Vandana Yojana for Senior Citizens

  • Only people aged 60 years or above are eligible to invest in this scheme.

  • The latest LIC Pradhan Mantri Vaya Vandana Yojana interest rate for 2022 is 7.40% per annum. The pension rate remained the same in 2020-21 and 2021-22 as well.

  • There is a cap on the minimum and maximum pension amount and purchase price as per the mode of payment chosen by the pensioner (see Eligibility Conditions).

  • The purchase price has to be paid in a lump sum.

  • LIC offers a refund of the purchase price if the pensioner finds the scheme unsatisfactory and returns it within the free look period.

Benefits Offered Under LIC Pradhan Mantri Vaya Vandana Yojana Policy

It comes packed with the following benefits for senior citizens:

  1. A regular pension for 10 years

    The assured pension amount shall be paid out regularly as per the interval chosen by the pensioner. If you want a monthly pension, LIC will pay out a fixed pension amount at the defined rate every month for 10 years (unless you die during this period).

  2. Death benefits for family & dependents

    If you die within the policy term of 10 years, LIC will return the purchase price paid by you to the assigned nominee.

  3. Maturity benefits from surviving 10 years

    If the insured individual survives to the very end of the policy tenure of 10 years, the purchase price, including the final pension installment, will be paid by LIC.

  4. Surrender benefits on premature exit

    This benefit can be availed under exceptional events like the assured life requiring money for the treatments of any critical/terminal illness of self or spouse. In such cases, LIC will pay you an S.V (Surrender Value), which is around 98% of the original Purchase Price.

  5. Loans can be availed in financial emergencies

    If you find yourself in urgent need of capital during the policy tenure, you can request LIC for a loan against the policy benefits. The loan facility can be availed after the completion of 3 policy years and is subject to a maximum loan of 75% of the Purchase Price.

    The Pradhan Mantri Vaya Vandana Yojana interest rate 2021 on loans availed till 30th April 2021 is 9.5% p.a.

  6. Increased savings through income tax benefits

    One can avail of the income tax benefits on premiums under Section 80C and on the death & maturity benefits under Section 10(10D) of the Income Tax Act of 1969.

    * Tax benefits are subjected to certain changes in the tax laws

Eligibility Conditions

Certain parameters have to be met to enjoy the benefits of this pension plan for senior citizens.

Criteria Minimum Maximum
Entry Age (completed) 60 years No limit
Policy Term 10 years (fixed)
Mode of Purchase Price Payment One-time lump sum payment
Purchase Price Monthly: Rs.1,62,162
Quarterly: Rs.1,61,074
Half-yearly: Rs.1,59,574
Yearly: Rs. 63,960
Monthly: Rs.15,00,000
Quarterly: Rs.14,89,933
Half-yearly: Rs.14,76,064
Yearly: Rs.14,49,086
Mode of Pension Payment Monthly, quarterly, half-yearly, or yearly
Pension Amount Monthly: Rs. 1,000
Quarterly: Rs. 3,000
Half-yearly: Rs. 6,000
Yearly: Rs. 12,000
Monthly: Rs.9,250
Quarterly: Rs.27,750
Half-yearly: Rs.55,500
Yearly: Rs.1,11,000


How does the LIC Pradhan Mantri Vaya Vandana Yojana Work?

Let’s assume that you are a 60-year-old male at the time of purchasing the policy. You pay a purchase price of Rs.10 lakhs in the scheme. You want to secure a monthly pension for 10 years. The annual pension rate of 7.40% p.a will be divided into 12 payments for every month in a year.

Here are the benefits you will be entitled to under the following circumstances -

  1. Monthly pension from the age of 60 to 70

    Your monthly pension will amount to Rs (10,00,000 x 7.40%)/12 = Rs.6,167 payable across 10 years.

  2. If you die in the 6th policy year

    • You will be entitled to a monthly pension of Rs.6,167 for the first 5 policy years.

    • Your family will get the Rs.10 lakhs that you had invested in the scheme.

  3. If you survive 10 policy years

    • A monthly pension worth Rs.6,167 will be credited to your account throughout the tenure of 10 years.

    • The purchase price of Rs.10 lakhs will be returned to you after completing 10 years.

    You can use the Pradhan Mantri Vaya Vandana Yojana Calculator to calculate the pension amount against the purchase price.

What Are the Documents Required to Buy This Policy?

One is advised to keep the mentioned documents ready to buy Pradhan Mantri Vaya Vandana Yojana:

  • Identification purposes: Passport, Aadhar card, Birth certificate, driving license, Voter ID card, Ration card, etc.

  • For address verification: Above mentioned documents, Gas bill, Electricity bill, maintenance bill, etc.

  • Income tax statements, Bank statements, photographs, Credit scores, etc., may also be needed.

Exclusions of Pradhan Mantri Vaya Vandana Yojana Plan

It covers all deaths irrespective of whether it is natural or resulting from suicide, accidents, etc. The purchase price shall be returned in full if it occurs within the policy term.


  • Q: What is the assured pension rate with Pradhan Mantri Vaya Vandana Yojana?

    Ans: The plan will provide a guaranteed pension of 7.40% p.a., which would be paid monthly.
  • Q: How to know the Pradhan Mantri Vaya Vandana Yojana Status?

    Ans: To know the Pradhan Mantri Vaya Vandana Yojana Status, one can contact LIC or log in to its online portal.
  • Q: Can one terminate Pradhan Mantri Vaya Vandana Yojana?

    Ans: If the insured individual is not satisfied with any of the details in the policy, he or she might return the plan to the company within a free look period of 15 days. If the policy was bought online, the free look period is 30 days.
  • Q: What is the interest rate on a Loan taken against the Pradhan Mantri Vaya Vandana Yojana scheme?

    Ans: For the loan given till 30th April of 2021, the applicable rate of interest would be 9.5% p.a.
  • Q: Is GST applicable to Pradhan Mantri Vaya Vandana Yojana?

    Ans: Yes, and the amount of Tax (GST) paid should not be considered for calculating the benefits payable within the plan.
  • Q: Can Pradhan Mantri Vaya Vandana Yojana be bought from a Third-party insurer?

    Ans: No, the LIC of India is solely authorized to sell this policy/ scheme.
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Pradhan Mantri Vaya Vandana Yojana Reviews & Ratings

4.8 / 5 (Based on 73 Reviews)
(Showing Newest 10 reviews)
Chalakudy, April 16, 2021
Easy claim settled
I bought the Lic India term plan from the suggestion of my family friend and he recommended me a lot of plans. He said that the claim settlement ratio is quick and easy. Also, it is protective plan.
Balasore, April 16, 2021
Child security fulfilled
I have bought a Lic India child plan online and it has been a year now. I like the way the this works. It is a nice plan I got for my child’s security.
Asifabad, April 14, 2021
Additional riders
Along with my Lic India term insurance plan I have got the additional riders too. It has been an important thing for me and can be useful at any point in time. It can be added with a minimal amount.
Mainpuri, April 14, 2021
Low premium
The premium rate of the child insurance plan of LIC India which I bought 3 years ago is best and it was under my budget. I was searching for some good plans related to child insurance. I got the way of buying this plan and loved it.
Lakhimpur Kheri, April 13, 2021
Tax rebate
I bought a Lic India term insurance policy online and it has been into my budget. Also, I like one thing that I would able to get the tax benefits under it. It is a good option and can be beneficial for all tax payers.
Babina, April 13, 2021
Maturity benefits to get
It is easy to get the maturity benefits when LIC India child plan gets matured and my child would get a better return. It would be easy for him to get the best education and can go for a higher education abroad.
Lakhimpur, April 12, 2021
I feel safe and secured for my family when I will be not around. The Lic India ULIP plan will give the better returns and maturity benefits. And will be quite helpful for my family to sustain their future.
Raghunathpur, April 09, 2021
Happy customers
I am one of the happiest customer of Lic India term plan and I have found various good deals. It is the plan which has come under my budget. And it has been a protective shield for me and my family.
Mota Chiloda, April 09, 2021
Great plan
I am happy with this plan and have recommended many people for the same. I bought the Lic India ulip plan 2 years back and It is a best kind of investment.
, April 09, 2021
Good Benefits
It is important for everyone to understand that benefit is must when you are buying a child insurance plan. I bought a beneficial child plan of LIC India.
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