Insurance intermediaries such as agents and brokers will get commission of 0.1% on invested amount in a newly launched pension scheme for senior citizen called Pradhan Mantri Vaya Vandana Yojana (PMVVY), said VK Sharma, Chairman, LIC India.
LIC India distributes this scheme on behalf of the government.
PMVVY gives an assured return of 8% p.a. payable monthly (effective returns of 8.30%) for 10 years. Pension is payable at the end of each period. Investors can choose frequency of payments i.e. monthly/ quarterly/ half-yearly/ yearly at the time of purchase. Investors can also take loan on up to 75% of the purchase price after three years. The scheme also allow premature exit for the treatment of any critical illness.
In addition, the government has exempted this scheme from GST. This means, distributors selling this scheme will not have to pay GST on their commissions as well.
Senior citizens can also buy this scheme directly from the company’s website.
