The Buyt Desk
LIC is one of the largest and most trusted insurance companies having multiple plans that help individuals meet their financial goals. To meet the daughter’s marriage and education goal, LIC has a Kanyadan policy. This plan intends to offer financial security to the girl child. Here are the details of this plan.
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It provides financial protection to the girl child.
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Risk cover up to three years before the plan matures.
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The insured person receives the maturity amount in a lump sum.
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In case of the death of the father, the premium gets waived off.
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In the condition of accidental death, immediate payment of 10 Lakh is made.
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In case of natural/non-accidental death, immediate payment of 5 Lakh is made to the beneficiary.
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Insurer receives Rs 50,000 every year until the maturity of the plan.
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People living outside India can also buy this plan.
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This policy has some features of the Jeewan Laksha Policy as well.
Various Benefits Of LIC Kanyadan Policy
LIC Kanyadan scheme secures the daughter’s future and benefits them in multiple ways. The corpus accumulated through the plan could be used for girl child education as well as marriage. Following are the benefits of the LIC Kanyadan policy.
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The premium paying term in the policy is limited.
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It is a with-profit endowment plan and so comes with saving and insurance benefits.
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All four premium payment modes are available within the policy, i.e. yearly, half-yearly, quarterly and monthly.
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If the policy applicant dies within the policy tenure, the beneficiary will receive 10% of the sum assured every year before the one year of the maturity date.
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The policy tenure of this plan is between 13 years to 25 years.
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The policyholder can choose the payment option for 6, 10, 15 and 20 years.
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The policy beneficiary receives the additional benefits if the daughter’s father dies within the policy tenure.
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The insurer also receives the disability rider provided that he has paid the premium for at least five years.
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In a situation, policyholder commits suicide within 12 months from the start of the policy, then LIC will pay 80 per cent of the premium except for the surrender value or taxes of two, whichever is higher.
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The insurer can avail loan against the policy if paid the premium for three years in a row.
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It is a tax-exempted policy under the Income Tax Act of 1961.
Eligibility For LIC Kanyadan Policy
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Only the father can purchase the policy for her daughter.
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The age limit for buying the policy is between 18 years to 50 years.
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The daughter should be at least 1 year old at the time of policy purchase.
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The minimum sum assured at maturity time is 1 Lakh.
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The maximum sum assured has no limit.
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Premium paying term is less than three years than the policy term. E.g. The premium term for a 10-year policy is seven years.
LIC does not have a policy with the name Kanyadan. It is the Jeewan Lakshya policy that LIC is selling under the name LIC Kanyadan Policy. This plan is an ideal low premium and high sum assured plan. In comparison to the Sukanaya Samridhi Yojna, which is also a dedicated scheme for the girl child, the LIC Kanyadan Scheme offers security to the beneficiary in case of the untimely death of the insurer/ father of the child, which is lacking in the Sukanaya Samridhi plan.
