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New Delhi: The Central Government has announced a new investment scheme for senior citizens. Union Finance Minister Arun Jaitley launched the PMVYYY scheme ie PMVVY. This plan was announced by Prime Minister Narendra Modi in May.
This scheme can be used as a monthly pension, if a person makes a lump sum investment of Rs 1,44,578 for 10 years under this scheme, he will get a pension of Rs 1,000 per month. If the investment is increased to Rs 7,22,892 then every month Rs 5,000 will be paid as pension. If the buyer dies during 10 years, the whole money will be returned to his nominee.
Let us tell you that the new pension scheme announced by the government is for senior citizens above 60 years of age. This plan will be available from May 4, 2017 to May 3, 2018. Service tax and GST are excluded from this plan. This plan can be purchased online alongside the Life Insurance Corporation of India (LIC) as well as online. The Life Insurance Corporation of India has been given the privilege to conduct this scheme.
This scheme ensures a fixed return of 8 percent per annum for 10 years (equivalent to 8.30 percent effective per annum). According to the monthly / quarter / half-yearly / annual frequency selected by the pension at the time of purchase of the scheme, pension is payable at the end of every period during the policy term of 10 years.
With the purchase price of the plan, the last installment of the pension will be paid on the survival of the pensioner till the end of the policy term of 10 years. At the end of three policy years (to meet the requirements of cash), loan up to 75 percent of the purchase price will be allowed. The loan interest will be paid from the installments of pension and the recovery of the loan will be done through the claim process.
There is also permission for premature withdrawal for the treatment of any serious / terminal illness of the spouse himself or in this scheme. In case of such premature withdrawal, 98 percent of the plan purchase price will be refunded. During the policy term of 10 years, the purchase price will be paid to the beneficiary on the death of the pensioner.