LIC Kanyadan Policy: Every Parent’s lifelong dream is to give their daughter a good upbringing—whether it is through education, marriage, or financial independence. The LIC of India systematically designs the LIC Kanyadan Policy to help parents build a substantial fund. In return, this will give their daughter good financial coverage to help her complete higher education, cover her marriage expenses, or aid her in lifelong pursuits.
The girl’s parents manage the LIC Kanyadan’s Savings Plan. The girl child will not have any access to the account. However, in any eventuality, the earning member of the family is given complete protection to support the family, especially the girl child. In difficult times, it comes to supporting the family, especially the girl child, to aid her educational and wedding expenses. The tenure of LIC Kanyadan Insurance Plan is 25 years, with a minimum term of 13 years and a maximum tenure of 25 years. The father should be in the age range of 18 to 50 years old.
The policy is a structured, customized variant of LIC’s Jeevan Lakshya Policy to meet a daughter’s financial needs in case of an unfortunate event affecting the earning Parent. The policy ensures that the girl’s future is well-protected by providing financial security and savings benefits. It will help parents build a corpus over time that can be used for major life events like education, marriage, or significant expenses.
The LIC Kanyadan Policy is a specially crafted life insurance-cum-savings plan by the Life Insurance Corporation of India (LIC), designed to help parents secure their daughter’s education, marriage, and future financial independence. Based on the LIC Jeevan Lakshya plan, this policy offers a perfect blend of protection, savings, and long-term growth benefits.
Eligibility Criteria for LIC Kanyadan Policy
| Entry Age (Parent/Policyholder) | Minimum 18 years – Maximum 50 years |
| Entry Age of Daughter | Minimum 1 year |
| Policy Term | 13 to 25 years |
| Premium Payment Term | Policy term minus 3 years |
| Maturity Age | Up to 65 years |
| Minimum Sum Assured | Rs. 1 lakh |
| Maximum Sum Assured | No limit (in multiples of Rs. 10,000) |
| Who Can Buy | Only parents or guardians; not in the name of the daughter itself |
Features and Benefits of the LIC Kanyadan Policy
The following are some key features and benefits of the LIC Kanyadan Policy. They are:
Financial Security in Case of Parent’s Demise:
- If the earning Parent or the policyholder passes away during the policy term, LIC waives all future premiums related to the policy and ensures that the financial future of the girl child remains intact. LIC also provides an immediate lump sum amount to the nominee.
Maturity Benefits:
- Suppose the policyholder survives the entire policy term. The full maturity amount is provided at the end of the tenure to help the daughter cover their marriage or educational expenses.
Flexible Payouts:
- LIC bestows flexible payouts under the LIC Kanyadan Policy. Under this scheme, the life assured can receive the death benefit or maturity benefits as a huge one-time lump sum payment or installments to provide a regular flow of income. The installment can be spread over a month, quarterly, half-yearly, or annually.
Premium Waiver Benefit
- No further premiums need to be paid in case the policy holder experiences any eventuality during the policy tenure.
Annual Income Benefit:
- In case of the policyholder’s eventuality, LIC pays 10% of the sum assured annually until the maturity period to support the family financially.
Accidental Death Benefit:
- In case of the policyholder’s accidental death, LIC releases an immediate amount of Rs. 10 Lakhs to the family.
Non-Accidental Death Benefit:
- In the case of non-accidental death, the LIC Kanyadan Policy provides immediate financial assistance of 5 Lakh Rupees, enabling the family to meet any immediate expenses.
Flexibility in Premium Payment:
- The Premium for the LIC Kanyadan Policy can be paid for 6, 10, 15, or 20 years, depending on the policyholder’s choice and financial capacity.
Loan Against Policy:
- The policyholder has the flexibility to take out a loan against the policy after a certain period of time. The loan can be taken out even if two premium amounts have been fully paid by the policyholders. The maximum loan amount that can be taken out under the policy is 80% of the surrender policy, and for an in-force policy, it is 90% of the surrender policy.
Tax Benefits:
- LIC offers various Tax Benefits for the Kanyadan Policy under the Income Tax Act 1961. Premiums paid under the policy are eligible for an exemption from tax under Section 80C of the Income Tax Act 1961, and the maturity benefits are tax-free under Section 10(10D).
Grace Period to Pay Premiums:
- Suppose the Policyholder forgets to pay the premium during the policy term. In that case, he is given a grace period of 30 days to pay the premium.
Accidental Rider Benefit:
- The policyholder of the LIC Kanyadan Policy can get extra insurance coverage by opting for accidental coverage.
Free Look Period:
- The LIC Kanyadan Policy comes with a free-look period. Under the Free-Look Period, the policyholder has the flexibility to return the policy within 15 days of acquiring it if they are not satisfied with the terms and conditions laid out in the policy. Upon scrutiny, LIC of India will cancel the LIC Kanyadan Policy and return the premium amount after deducting certain charges.
The LIC Kanyadan Policy
The following table gives a detailed enlisting of the LIC Kanyadan Policy.
| Particulars | Details |
| Age Criteria for Policy Holder | 18-50 Years Old |
| Age of Daugther | Minimum of 1 Year |
| Policy Term | 10 Years to 25 Years |
| Premium Paying Terms | Term – 3 Years (10 to 22 Years) |
| Minimum Sum Assured | Minimum – Rs. 1,00,000 Maximum – No Upper Limit Basic Sum Assured – In Multiples of Rs.10,000 |
| Maximum Maturity Age | 65 Years |
| Policy Term | 13 Years – 25 Years Old |
| Premium Paying Term | Policy Term Minus 3 Years |
| Premium Payment Options | Monthly, Quarterly, Half Yearly, Yearly |
| Rides Benefit | Available |
| Loan | In force Policies: 90% of the Surrender Value Paid-Up Policies: 80% of the Surrender Value |
| Surrender | Receives a Surrender Value calculated as the Guaranteed Surrender Value or Special Surrender Value after paying premiums for three years |
| On Maturity | Receives the Sum Assured along with Simple Reversionary Bonuses and Final Additional Bonus |
| Income Tax Benefits | Premium Exemption under Section 80C and Maturity Benefits Exemptions under Section 10(10D). |
| Who can Buy the Policy | Father and Mother of the Girl can Buy the Policy |
Who Requires LIC Kanyadan Policy?
- Parents who want to secure their daughter’s future financially for their education and marriage.
- Families who want to use an insurance policy as a mode of investment. Ideally, this gives them the perfect blend of savings and protection for their girl child.
- Individuals who want to avail themselves of income tax benefits and insurance coverage.
- Family who want to secure their daughter’s future without their earning partner.
- The LIC Kanyadan Policy is an excellent option for parents looking for the perfect insurance coverage for their daughters. It gives them 100% protection against any eventuality.
Benefits of LIC Kanyadan Policy
- Financial Security: Ensures your daughter’s education and marriage expenses are covered even after your demise.
- Maturity Benefits: Receives the sum assured and bonuses if the insured survives the policy term.
- Death Benefits: Provides immediate lump-sum payout and yearly income for the nominee.
- Rider Options: Choose from four optional covers – Accidental Death and Disability, Accident Benefit, New Term Assurance, and New Critical Illness Riders.
- Loan Facility: Borrow against your policy after 2 years of full premium payments.
- Rebate on Premiums:
- Yearly payment – 2% discount
- Half-yearly – 1% discount
- High Sum Assured Rebate:
- Rs. 2 to 4.9 lakh – 2% rebate
- Rs. 5 lakh & above – 3% rebate
Policy Exclusions
- Suicide Clause: If the insured commits suicide within 12 months of policy commencement, 80% of premiums paid are refunded (excluding taxes and extra premiums).
- Grace Period:
- 30 days for annual, half-yearly, or quarterly premiums
- 15 days for monthly payments
- Surrender and Loan Provisions
- Surrender Value: Eligible after paying 2 full years of premiums.
- Guaranteed Surrender Value: Percentage of premiums paid (excluding taxes and rider premiums) based on policy year.
- Loan Facility:
- Up to 90% of surrender value for active policies
- Up to 80% for paid-up policies
Surrender and Loan Provisions
- Surrender Value: Eligible after paying 2 full years of premiums.
- Guaranteed Surrender Value: Percentage of premiums paid (excluding taxes and rider premiums) based on policy year.
- Loan Facility:
- Up to 90% of surrender value for active policies
- Up to 80% for paid-up policies
Example of LIC Kanyadan Policy Illustration
Suppose Mr. Sharma, aged 36, buys LIC Kanyadan Policy for 15 years with a sum assured of Rs. 25 lakh.
- Yearly Premium (Approx): Rs. 1,99,770 + GST
- Maturity Benefit: Rs. 25 lakh + Bonuses
- Total Benefit to Nominee (Tax-free): Rs. 87.5 lakh (including death and annual income benefits)
Additional Information
- Free Look Period: 15 days from policy bond receipt to cancel the plan.
- Policy Revival: Can be revived within 5 years from lapse by paying arrears and interest.
- Rider Selection Limit: Up to 3 riders allowed to enhance coverage.
- CSC Payments: Premiums can now be paid at any CSC centre across India.
How to Apply for LIC Kanyadan Policy?
LIC of India encourages its customers to buy the LIC Kanyadan Policy through offline mode. Customers can walk into the nearest LIC branch and enquire about the requisite documents that need to be submitted. They will be given details of the terms and conditions that must be followed during the policy’s tenure. Some of the documents that need to be submitted for the LIC Kanyadan Policy are:
Girl Child Documents:
- Birth Certificate
- Passport Size Photograph
Parent’s/Legal Guardian Documents:
- Identity Proof: PAN Card/Aadhar Card/Voters ID Card
- Address Proof: Aadhar Card/ Passport
- Income Proof: Salary Statement, Bank Statement, Form 16
- Valid Mobile Number
Other Documents:
- Any documents that are required at the time of application
- Canceled Cheque Leaf for providing the bank details of the Policyholder.
These are some of the documents that might be required to purchase the LIC Kanyadan Policy. The LIC of India might also ask you to submit some of the documents as and when needed.
LIC Kanyadan Policy Revival
If, at any point, you cannot pay the premium of the LIC Kanyadan Policy within the due date or the grace period mentioned, the policy ceases to exist. You will lose all the benefits of the policy, and the rider benefits. But at the same time, you can also revive the policy within 5 years by paying the outstanding premiums with the half-yearly compounding interest. This policy is revived only when LIC of India accepts the unpaid premium amount and issues a receipt for the revival of the policy.
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Conclusion
We have enlisted detailed coverage of the LIC Kanyadan Policy. It enlists the details of the policy benefits for the girl child and the Policyholder, especially during testing times. To get more information about the LIC Kanyadan Policy, you can get in touch with any of the LIC Branches or LIC Insurance Agents.