APY or Atal Pension Yojana guarantees a return of investment, meaning, upon the death of the policyholder, the beneficiary will get back the paid premiums. 

In the Atal Pension Yojana scheme, once the subscriber dies, his/her spouse will receive the exact pension amount. After the death of the subscriber's spouse, the nominee of this account gets a corpus amount. This corpus amount is the total of the premiums you have paid towards the scheme. 

The corpus amount is fixed based on the pension amount that was selected by the subscriber. The pension plan promises a fixed monthly pension of Rs. 1000/Rs. 2000/Rs. 3000/Rs. 4000/Rs. 5000, and according to the plan the subscriber gets the corpus amount.

Here is a simple table illustrating the corpus amount you will receive based on the pension amount: 

Pension Amount

Corpus Amount

Rs. 1000

Rs. 1.7 lakhs

Rs. 2000

Rs. 3.4 lakhs

Rs. 3000

Rs. 5.1 lakhs

Rs. 4000

Rs. 6.8 lakhs

Rs. 5000

Rs. 8.5 lakhs


If a subscriber chooses Rs.5,000 as his or her pension amount, the pension will be available to his or her spouse in the event of the subscriber's death, and if both of them (subscriber and spouse) die, the pension corpus (as shown in the above table) will be returned to his or her nominee and the pensions will seize.