Pradhan Mantri Vaya Vandana Yojana (PMVVY)

6 mins read
by Angel One
Pradhan Mantri Vaya Vandana Yojna is a pension scheme for senior citizens in India. Read on to know all about it.

Launched by the Government of India on May 4, 2017, the Pradhan Mfantri Vaya Vandana Yojana (PMVVY) was introduced to provide a solution to the long-standing problem of financial insecurity faced by senior citizens in India. It provides senior citizens with a regular and guaranteed pension income and helps them secure their financial future during retirement. 

What is the Pradhan Mantri Vaya Vandana Yojana?

The Pradhan Mantri Vaya Vandana Yojana is a pension scheme for senior citizens in India, which is primarily aimed at providing financial security to individuals aged 60 and above. The scheme is administered by the Life Insurance Corporation of India and was introduced by the Government of India. It offers a guaranteed regular pension income to senior citizens for a specified period, which can be either 10 years or 15 years, depending on the choice of the policyholder.


The PM Vaya Vandana Yojana aims to provide financial security to senior citizens in India by offering them a guaranteed and regular pension income. It encourages savings and financial independence among the elderly population by providing predictability and stable returns. This scheme not only supports the ageing demographic but also fosters financial inclusion, especially in rural areas. PMVVY offers tax benefits on premiums, reducing the tax burden on policyholders. Overall, it helps seniors lead dignified lives during retirement, alleviating their financial concerns and promoting their overall well-being.

Features and Benefits of PMVVY

PMVVY has a variety of features and benefits for the senior citizens of India.  Let’s expand on each of the features and benefits of the Pradhan Mantri Vaya Vandana Yojana :


Age Eligibility: PMVVY is available to individuals aged 60 and above, making it accessible to a wide range of senior citizens.

Policy Term: Policyholders can choose between two policy terms 10 years and 15 years, based on their financial planning and retirement needs.

Pension Options: PMVVY provides flexibility in choosing the frequency of pension payments. Policyholders can opt to receive their pension income on a monthly, quarterly, half-yearly, or annual basis, depending on their preferences and financial requirements.

Guaranteed Returns: One of the most significant features of PMVVY is the guarantee of fixed interest rates for the entire policy term. This ensures that policyholders receive a stable and predictable pension income, safeguarding them against market fluctuations.

Minimum and Maximum Purchase Price: PMVVY specifies a minimum purchase price, making it accessible to a wide range of individuals. There is no maximum limit on the purchase price, allowing policyholders to invest according to their financial capacity. The pension amount is determined based on the purchase price, offering flexibility.

Loan Facility: After three years of policy, policyholders can avail of a loan against their PMVVY plan, providing them with a financial safety net in case of unexpected expenses or emergencies. This feature enhances the scheme’s liquidity.

Surrender Value: While PMVVY is designed for the long term, it offers a surrender value option under exceptional circumstances, such as the diagnosis of critical illness. In such cases, policyholders can surrender the policy and receive the purchase price along with a specified percentage of interest.


Pension Income: The primary benefit of PMVVY is the regular pension income it provides to policyholders. This income serves as a financial lifeline during retirement, covering day-to-day expenses and ensuring a comfortable retirement lifestyle.

Maturity Benefit: At the end of the chosen policy term (either 10 or 15 years), policyholders receive the purchase price along with the final pension instalment. This ensures that their initial investment is returned to them.

Death Benefit: In case of the policyholder’s demise during the policy term, the nominee receives the full purchase price as a death benefit, providing financial security to the family or dependents

Income Tax Benefits: Premiums paid under PMVVY are eligible for tax benefits under Section 80C of the Income Tax Act, reducing the policyholder’s taxable income. This feature helps policyholders lower their overall tax liability.

Financial Security: PMVVY offers peace of mind and financial security to senior citizens, allowing them to lead a dignified life during their retirement years without depending solely on their family or social security benefits.

Encourages Savings: By offering an attractive interest rate and tax benefits, PMVVY encourages senior citizens to channel their savings into a secure and structured investment, promoting financial discipline and long-term financial planning.

Eligibility Criteria for the PM Vaya Vandana Yojana 

The Pradhan Mantri Vaya Vandana Yojana is open to Indian citizens aged 60 or above, without a maximum age limit, as well as Non-Resident Indians (NRIs). It requires a minimum purchase price, with no maximum limit, and does not necessitate a medical examination, simplifying accessibility. 

Policyholders can choose between two terms, 10 or 15 years, and payment options. After three years, loans can be availed, and nominees can be designated. While specific details may change, PMVVY remains a viable option for senior citizens seeking financial security and a stable income during retirement.

Application Process for PM Vaya Vandana Yojana


Individuals are required to visit their nearest or preferred LIC branch to acquire this programme offline. Individuals have to complete the online submission along with the relevant documentation and the specified amount after settling on the desired purchase price or pension payout.


Step 1: Go to the LIC India’s official website.

Step 2: Click on the “Pradhan Mantri Vaya Vandana Yojana” option under the ‘Buy Policy Online’ headline.

Step 3: A fresh window with four options will open. Now, select the ‘Buy Online’ option by clicking on the appropriate button no. 842. A new page will open on the screen and then click to Buy Online’ option in the upper left-hand corner.

Step 4: To proceed, generate an Access ID in the next step. To produce the ID, provide contact information such as your name, email address, mobile phone number, birth date, residence, and servicing unit. This 9-digit Access ID will be sent to you through SMS or email at the registered cellphone number.

Step 5: To proceed with the application, enter the Access ID and click the ‘Proceed’ option.

Step 6: Finally, after deciding on a pension plan through the PMVVY, complete the online application, submit scanned versions of the needed papers, and make payment. After submitting the application form successfully, you will receive a confirmation email and policy number.

Required Documents to Apply for Pradhan Mantri Vaya Vandana Yojana 

To apply for the PMVVY individuals typically need to provide age proof (e.g., Aadhaar card, passport), identity proof (e.g., PAN card, Aadhaar), address proof (e.g., utility bills, voter ID), passport-size photographs, and nominee details if applicable. Document requirements may vary, so it’s advisable to check the LIC website or contact LIC directly for the most current information.


PMVVY is a government-backed pension scheme for senior citizens that offers financial security during retirement. With guaranteed returns and flexible payout options, it helps elderly individuals secure their financial future. It serves as a valuable tool in ensuring a dignified and worry-free retirement.


Who is eligible for PMVVY?

PMVVY is open to Indian citizens aged 60 and above, with no maximum age limit. It is also available to Non-Resident Indians (NRIs).

What is the policy term for PMVVY?

Policyholders can choose between two terms: 10 years and 15 years, based on their retirement planning preferences.

How is the pension income paid under PMVVY?

Policyholders can choose the payout frequency: monthly, quarterly, half-yearly, or annually. The pension income is paid accordingly.

Are the premiums paid under PMVVY eligible for tax benefits?

Yes, the premiums paid for PMVVY are eligible for tax benefits under Section 80C of the Income Tax Act. However, the pension income received is taxable according to the policyholder’s income tax slab.