LIC Kanyadan Policy (2023) : Future, Eligibility and Benefits | Best Investment for Your Daughter’s Future

Explanation of LIC Kanyadan Policy

LIC Kanyadan Policy is a unique life insurance policy offered by the Life Insurance Corporation of India (LIC) with the aim of providing financial security to daughters. By providing them with financial support in the event of unforeseen circumstances, the plan is designed to address the demands of parents who want to safeguard their daughter’s future.

The fact that the policy offers the policy holder life insurance makes it similar to other types of life insurance policies. However, it also comes with the added benefit of building a corpus for the daughter’s future education and marriage expenses. This policy is meant to provide parents with a safety net in the case of the unexpected while also pushing them to save for their daughter’s future.

The LIC Kanyadan Policy offers a range of benefits such as tax exemptions on premiums paid, flexible payment options, and competitive returns on investment. Parents can choose the policy term and premium payment frequency as per their convenience, making it a highly flexible and customizable policy.
The policy also offers loan and surrender value benefits, making it a versatile financial instrument that can be used to meet a range of financial needs. Overall, the LIC Kanyadan Policy is a comprehensive financial planning tool that provides parents with peace of mind while ensuring their daughter’s financial security.

Overview of LIC Kanyadan Policy

Lic Kanyadan Policy is a special life insurance policy offered by Life Insurance Corporation of India (LIC) for the benefit of parents who want to financially secure the future of their daughters. This policy is intended to offer the daughters financial security in the event of unanticipated occurrences, such as the passing of the parents.

In the customary Hindu wedding ceremony known as kanyadan, the father of the bride presents his daughter as a gift to the groom, signifying his acceptance of the groom as his son-in-law.
LIC Kanyadan Policy draws inspiration from this tradition and aims to provide a gift of financial security to the daughter.

The policy is a unique offering from LIC and is specially designed to cater to the specific needs of parents who wish to secure their daughter’s future. It not only provides life insurance cover but also helps parents in accumulating funds for their daughter’s future education and marriage expenses.

The LIC Kanyadan Policy offers a host of benefits such as tax exemptions on premiums paid, attractive returns, and flexible payment options. It also allows parents to choose the policy term and premium payment frequency as per their convenience.

Overall, the LIC Kanyadan Policy is a thoughtful and practical solution for parents who want to ensure their daughter’s financial stability and security. By offering women the tools to realize their goals and desires, this strategy advances gender equality and empowers women.

Read also : Sukanya Samriddhi Yojana

Understanding LIC Kanyadan Policy

To fully understand the benefits and eligibility criteria of the LIC Kanyadan Policy, it is important to delve into the details of the policy. This involves understanding the premium payment options, policy term, maturity benefits, tax benefits, and loans and surrender value.

By having a clear understanding of the LIC Kanyadan Policy, parents can make an informed decision about whether this policy is the right choice for them and their daughter’s financial security.

Definition and explanation of the policy

The LIC Kanyadan Policy offers life cover to the policyholder along with the added benefit of building a corpus for the daughter’s future education and marriage expenses. With the ability to help women realize their goals and desires, this policy is a potent financial planning instrument intended to advance gender equality.

The policy offers a range of features such as flexible premium payment options, competitive returns on investment, and tax benefits. Additionally, the policy comes with loan and surrender value benefits, making it a versatile financial instrument that can be used to meet a range of financial needs.

To be eligible for the LIC Kanyadan Policy, the policyholder must be a parent or a legal guardian of the daughter. The policy has a minimum policy term of 13 years and a maximum policy term of 25 years, and it is available for daughters between the ages of 0 and 12 years.

Benefits of LIC Kanyadan Policy

The LIC Kanyadan Policy is a unique life insurance policy offered by the Life Insurance Corporation of India (LIC) that provides a range of benefits to policyholders. Here are some of the key benefits of the LIC Kanyadan Policy:

• Financial Security: The policy provides financial security to the daughter in the event of the policyholder’s untimely death. The policy offers life insurance cover along with the added benefit of building a corpus for the daughter’s future education and marriage expenses.
• Tax Benefits: The premiums paid towards the policy are eligible for tax exemptions under Section 80C of the Income Tax Act. Additionally, the maturity benefits are also tax-free under Section 10(10D) of the Income Tax Act.
• Competitive Returns: The policy offers competitive returns on investment, providing parents with an opportunity to build a corpus for their daughter’s future needs.
• Flexible Payment Options: The policy offers flexible premium payment options, allowing parents to choose the policy term and premium payment frequency as per their convenience.
• Loan and Surrender Value Benefits: The policy offers loan and surrender value benefits, making it a versatile financial instrument that can be used to meet a range of financial needs.

The LIC Kanyadan Policy is a comprehensive financial planning tool that provides parents with peace of mind while ensuring their daughter’s financial security.

Eligibility criteria for the LIC Kanyadan Policy

To be eligible for the LIC Kanyadan Policy, the policyholder must meet the following criteria:

• Age: The policyholder must be between the ages of 18 years to 50 years.
• Relationship with the Daughter: The policyholder must be a parent or a legal guardian of the daughter. The policy can be taken out for daughters between the ages of 0 to 12 years.
• Premium Payment: The policyholder must agree to pay the premiums as per the policy schedule. The premium payment frequency can be monthly, quarterly, half-yearly, or annually.
• Medical Examination: The policyholder must undergo a medical examination if required by the insurance company. This is to determine the policyholder’s health condition and assess the risk associated with the policy.
• Policy Term: The policy term for the LIC Kanyadan Policy can range from a minimum of 13 years to a maximum of 25 years.

It is important to note that the eligibility criteria for the LIC Kanyadan Policy may vary depending on the insurance company’s policies and regulations. It is advisable to consult with an insurance agent or company representative to understand the specific eligibility requirements and documentation required to apply for the policy.

How to apply for the policy

To apply for the LIC Kanyadan Policy, follow the steps below:

• Visit the nearest LIC branch or website: You can visit the nearest LIC branch office or their website to initiate the process of applying for the Kanyadan Policy.
• Fill out the application form: You will be required to fill out the application form for the LIC Kanyadan Policy. The form will require details such as your personal information, daughter’s details, policy term, premium payment frequency, and nominee details.
• Submit the required documents: You will need to submit the required documents, which may include identity proof, address proof, age proof, income proof, and medical examination reports if applicable. The specific documents required may vary depending on the insurance company’s policies.
• Pay the premium: Once the application is submitted, you will be required to pay the premium as per the policy schedule. The premium payment frequency can be monthly, quarterly, half-yearly, or annually.
• Medical Examination: You may be required to undergo a medical examination if necessary for the policy.
• Wait for approval: Once the application is submitted, it will be reviewed by the insurance company, and you will be notified of the approval or rejection of the application.

LIC Kanyadan Policy is a straightforward process that requires you to fill out the application form, submit the required documents, pay the premium, and undergo a medical examination if required. It is advisable to consult with an insurance agent or company representative to understand the specific requirements and documentation required to apply for the policy.

Features of LIC Kanyadan Policy

The LIC Kanyadan Policy comes with a range of features that make it a comprehensive life insurance policy for parents who want to secure their daughter’s future. Here are some of the key features of the LIC Kanyadan Policy:

• Life Insurance Cover: The policy offers life insurance coverage to the policyholder, providing financial security to the daughter in case of the policyholder’s untimely death.
• Maturity Benefit: The policy offers a maturity benefit, which is paid out at the end of the policy term, providing parents with a corpus to meet their daughter’s future education and marriage expenses.
• Premium Payment Options: The policy offers flexible premium payment options, allowing parents to choose the policy term and premium payment frequency as per their convenience.
• Loan and Surrender Value Benefits: The policy offers loan and surrender value benefits, making it a versatile financial instrument that can be used to meet a range of financial needs.
• Tax Benefits: The premiums paid towards the policy are eligible for tax exemptions under Section 80C of the Income Tax Act. Additionally, the maturity benefits are also tax-free under Section 10(10D) of the Income Tax Act.
• Policy Term: The policy term for the LIC Kanyadan Policy can range from a minimum of 13 years to a maximum of 25 years.
• Additional Riders: The policy offers additional riders such as accidental death benefit, critical illness benefit, and disability benefit, which can be added to the base policy for enhanced coverage.

Comparison LIC Kanyadan Policy with Other Insurance Policies

Comparison with traditional endowment policies

The LIC Kanyadan Policy and traditional endowment policies are two different types of life insurance policies. Here’s a comparison of the two:

• Purpose: The purpose of the LIC Kanyadan Policy is to provide financial security for the policyholder’s daughter, while traditional endowment policies are designed to provide financial security for the policyholder and their dependents.
• Policy Term: The policy term for the LIC Kanyadan Policy can range from a minimum of 13 years to a maximum of 25 years, while traditional endowment policies typically have a longer policy term of 15 to 30 years or more.
• Maturity Benefit: Both policies offer a maturity benefit, but the LIC Kanyadan Policy’s maturity benefit is specifically designed to meet the daughter’s education and marriage expenses.
• Premium Payment Options: The LIC Kanyadan Policy offers flexible premium payment options, while traditional endowment policies typically require regular premium payments for the entire policy term.
• Additional Riders: Both policies offer additional riders for enhanced coverage, but the LIC Kanyadan Policy’s riders are specifically designed for the policyholder’s daughter’s future financial security.
• Tax Benefits: Both policies offer tax benefits on premiums paid and maturity benefits received, but the specific tax benefits may vary based on the policy’s terms and conditions.

Comparison with child plans

The LIC Kanyadan Policy and child plans are both life insurance policies that are designed to provide financial security for a child’s future. However, there are some key differences between the two. Here’s a comparison of the LIC Kanyadan Policy and child plans:

1. Purpose: The LIC Kanyadan Policy is specifically designed to provide financial security for the policyholder’s daughter, while child plans can be used to provide financial security for any child.
2. Maturity Benefit: The LIC Kanyadan Policy offers a maturity benefit that is specifically designed to meet the daughter’s education and marriage expenses, while child plans may offer a more general-purpose maturity benefit.
3. Premium Payment Options: The LIC Kanyadan Policy offers flexible premium payment options, while child plans may require regular premium payments for the entire policy term.
4. Investment Component: Some child plans may offer an investment component, allowing parents to build a corpus for their child’s future financial needs, while the LIC Kanyadan Policy does not have an investment component.
5. Policy Term: The policy term for the LIC Kanyadan Policy can range from a minimum of 13 years to a maximum of 25 years, while child plans may have longer policy terms.
6. Additional Riders: Both policies may offer additional riders for enhanced coverage, such as accidental death benefit or critical illness benefit.
7. Tax Benefits: Both policies offer tax benefits on premiums paid and maturity benefits received, but the specific tax benefits may vary based on the policy’s terms and conditions.

Comparison with Sukanya Samriddhi Yojana

The LIC Kanyadan Policy and Sukanya Samriddhi Yojana (SSY) are two popular financial products in India that are designed to provide financial security for a girl child’s future. While both products share a similar objective, there are some key differences between the two. Here’s a comparison of the LIC Kanyadan Policy and Sukanya Samriddhi Yojana:

1. Purpose: The LIC Kanyadan Policy is a life insurance policy that is designed to provide financial security for a policyholder’s daughter, while the Sukanya Samriddhi Yojana is a government-sponsored savings scheme aimed at securing the future of a girl child.
2. Policy Term: The LIC Kanyadan Policy can have a policy term of up to 25 years, while the Sukanya Samriddhi Yojana has a tenure of 21 years, or until the girl child reaches the age of 18, whichever is earlier.
3. Maturity Benefit: The LIC Kanyadan Policy offers a maturity benefit, which is designed to meet the daughter’s education and marriage expenses. In comparison, the Sukanya Samriddhi Yojana provides a lump sum amount at maturity.
4. Premium Payment Options: The LIC Kanyadan Policy offers flexible premium payment options, while the Sukanya Samriddhi Yojana requires a fixed minimum contribution every year.
5. Interest Rate: The interest rate for LIC Kanyadan Policy is decided by the company, while Sukanya Samriddhi Yojana offers a higher interest rate than most other savings schemes.
6. Tax Benefits: Both products offer tax benefits under Section 80C of the Income Tax Act, but the LIC Kanyadan Policy also provides tax-free maturity benefits under Section 10(10D).

Recap of the benefits and features of the policy

To recap, the LIC Kanyadan Policy is a life insurance policy designed to provide financial security for a policyholder’s daughter. Here are some of the benefits and features of the policy:

Benefits:

• Provides long-term savings for a daughter’s future expenses, such as education or marriage
• Offers a maturity benefit, which can be used to meet the daughter’s future expenses or provide a lump sum amount for her financial security
• Provides tax benefits under Section 80C of the Income Tax Act and the maturity benefit is tax-free under Section 10(10D) of the Income Tax Act
• Provides life insurance coverage, ensuring the daughter’s financial future is secure even in the event of the policyholder’s untimely demise

Features:

• Offers flexible premium payment options, allowing policyholders to choose a premium payment frequency that suits their financial situation
• Provides a death benefit, which is paid to the nominee in the event of the policyholder’s death during the policy term
• Offers a loan facility against the policy for emergency financial needs
• Allows policyholders to customize the policy with various riders, such as critical illness rider and accidental death and disability benefit rider

The LIC Kanyadan Policy is a popular choice among parents who want to secure their daughter’s financial future and plan for their expenses in advance. It provides long-term savings, tax benefits, flexible premium payment options, life insurance coverage, and a maturity benefit, making it a comprehensive policy for the financial security of a daughter.

Importance of financial planning for daughters

Financial planning is an important aspect of everyone’s life, including daughters. Financial planning for daughters is crucial because it ensures that they have the resources they need to achieve their goals and live a financially secure life. Here are some reasons why financial planning is important for daughters:

• Education: Education is the key to success, and every parent wants their child to have access to the best education possible. However, education can be expensive, and not planning for it in advance can lead to financial strain. Financial planning ensures that parents can provide their daughters with quality education without worrying about the cost.
• Marriage: Marriage is a significant event in a daughter’s life, and it can come with significant expenses. Financial planning helps parents save for their daughter’s wedding expenses, so they can provide a beautiful wedding without straining their finances.
• Career: A daughter’s career is an essential aspect of her life. Financial planning can help her pursue the career of her choice without worrying about financial limitations. Parents can use financial planning to save for their daughter’s future business or to fund any training or certification that may be required to excel in her chosen field.
• Retirement: Financial planning is not just about saving for the immediate future. It also involves planning for the long-term, including retirement. Parents can use financial planning to build a retirement fund for their daughter, ensuring that she has a secure financial future.

Exclusions of The LIC Kanyadan Policy

Even while the LIC Kanyadan Policy has a ton of benefits, it also has several exclusions. Please inform us of the policy’s exclusions listed below.

• The Corporation will not consider any claim under the policy, with the exception of 80% of the total premiums paid, providing the policy is in force, if the insured parent commits suicide at any point within 12 months of the date on which the risk first became a concern.
• On the other hand, 80% of the total premiums paid up until the day of death or the surrender value available as of the date of death, whichever is higher, will be repaid if the insured parent dies by suicide within 12 months of the date of revival. Any additional claims under the policy will not be handled by the insurer.

In conclusion, financial planning for daughters is essential for their financial security and to achieve their goals in life. By planning for their education, marriage, career, and retirement, parents can ensure that their daughters have the resources they need to succeed in life.

Consider LIC Kanyadan Policy

If you are a parent or guardian of a daughter, financial planning is crucial for her future success and security. The Lic Kanyadan Policy is an excellent option to consider, as it offers a range of benefits, including a lump sum payout at maturity, protection against life’s uncertainties, and tax benefits.

By investing in the Lic Kanyadan Policy, you can ensure that your daughter has access to financial resources when she needs them the most. It is a valuable investment that can help your daughter achieve her dreams and provide financial stability for her future.

So, if you want to secure your daughter’s financial future, consider investing in the Lic Kanyadan Policy today. Consult with a Lic agent or visit their website for more information on the policy’s eligibility criteria, features, and benefits. Take the first step towards securing your daughter’s future today!

Conclusion

LIC Kanyadan Policy is widely becoming popular even though LIC does not offer any such policy in its name. LIC Jeevan Lakshay policy is the policy on which LIC Kanyadan policy is based. Mainly because of the name focusing more on the girl child, LIC Kanyadan Policy is becoming famous amongst the buyers. A pure endowment plan, the Kanyadan plan offers great risk covers along with great saving options making it a good plan to buy for your daughter.

FAQ of LIC Kanyadan Policy