Lic senior citizen scheme: LIC or Life Insurance Corporation of India is the largest and the oldest insurance provider in India since 1956. Ever since its inception, it has helped millions of Indians with their insurance needs.
It is not only the oldest but also the most reliable insurance provider across the country. With a plethora of products and services, LIC has something to suit every individual’s needs, including senior citizens.
LIC has a wide variety of schemes and plans that cater to the needs of senior citizens. A unique pension plan has been introduced by the name of Pradhan Mantri Vaya Vandana Yojna of the LIC senior citizen scheme for senior citizens above the age of 60.
LIC is the only service provider that is responsible for providing this scheme. Any individual interested in this scheme can easily purchase this scheme online.
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Features and Benefits of LIC senior citizen scheme
There are numerous LIC senior citizen schemes available for senior citizens today like fixed deposits, NSC, post-office savings, etc. Undoubtedly, senior citizens can easily shop around and look for schemes that are suitable to their financial needs.
However, some schemes may provide high returns but the providers might not be as reliable or as beneficial as LIC. PMVVY allows senior citizens to save a lump sum amount received either in the name of pf withdrawals or savings sitting in their bank account providing a fixed monthly income or pension for 10 years even after the age of 60.
Benefits
- There is no maximum age limit to purchase this policy. Every Indian citizen 60 years and above is eligible to buy this plan
- Investing in this scheme can assure a pension for 10 years
- Apart from getting an assured pension for 10 years, senior citizens also get an 8% of assured return on the invested amount
- Unlike earlier, when senior citizens were allowed to only invest 7.5 lakhs under this scheme, now they can invest up to 15 lakhs under this scheme
Features
- Pension Payment modes – Depending on the need, senior citizens can opt for a monthly, quarterly, or annual payment plan. If they choose a monthly payment plan, the first payment will be made after one month, after 3 months for quarterly payments, 6 months for half-yearly payments, and one year for yearly payments. The payments are made through a secured payment gateway via NEFT or AEPS (Aadhar-enabled payment system)
- No GST is levied on this scheme i.e. this scheme is exempted from GST
- If you are comfortable online, you can easily purchase this scheme online from the LIC portal or you can also choose to visit any LIC branch to purchase this scheme. Please ensure to carry passport-size photographs, and KYC documents like PAN or Aadhar along with the cheque for the amount to be invested
- Policyholders are eligible for a loan against policy after three policy years. The loan value would be 75% of the purchase amount. The interest rate of 10% will be charged.
- In case of suicide or death, the policy holder’s nominee would receive the purchase value and the policy is terminated.
- PMVVY allows the holders for a premature exit that is before the completion of the term under emergencies. In such cases, the holder receives 98% of the purchase price
PMVVY is better than other investment schemes, especially for senior citizens who are looking for a regular pension. However, the only drawback to the scheme is that they must have a substantial amount in hand to invest in this scheme.
SCSS or PMVVY. Which LIC scheme is better?
A senior citizen saving scheme or SCSS is one of the most common LIC senior citizen schemes for people above 60 years of age. Like PMVVY, the senior citizen savings scheme also offers regular income, tax savings, and safety on the amount.
Under this scheme as well, senior citizens can invest from a minimum amount of Rs 1000 to a maximum of 15 lakhs in a lump-sum amount.
The interest rate offered on this scheme is 7.4% per annum and the documentation process is also quite simple. Senior citizens can enjoy tax benefits up to Rs 1.5 lakh as per the 80C of the Income Tax Act.
Under this scheme as well, senior citizens have the option of early withdrawals, however, they are required to pay some premature charges according to ppf withdrawal rules.
Summing Up!
Inflation in the country is at an all-time high. In such a situation, only savings won’t be enough to keep your family surviving after retirement. Hence, retirement planning is the need of the hour.
It not only offers security but also gives financial independence even after retirement when you have no regular income coming.
With the different options available, you can choose any one of the LIC senior citizen schemes that suit your financial needs. However, you must do your due diligence before investing your money.
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