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LIC Kanyadan Policy: Secure Your Daughter’s Future with LIC.
Table of Contents
Introduction
LIC Kanyadan Policy aims to provide financial security for the girl child. When parents in India have a girl child, they worry about future expenses such as education and marriage. Parents can now relax with LIC’s Kanyadan Policy, ensuring a secure financial future for their daughters. Life Insurance Corporation of India offers this policy for worry-free planning. LIC Kanyadan Policy is a fully customized policy for users and is also affordable for middle-class families.
Read below the detailed Policy plans with eligibility criteria, premiums, key benefits and exclusions.
What is LIC Kanyadan Policy?
LIC Kanyadan Policy provides financial security specifically for a girl child. LIC Kanyadan Policy is a fully customized policy version of the LIC Jeevan Lakshay policy and combines both protection and savings features. The main aim of the LIC Kanyadan Policy is to provide financial support to parents for their daughter’s education and marriage.
Key Features of the LIC Kanyadan Policy
Eligibility Criteria
| Parameters | Details |
|---|---|
Policyholder’s age | Minimum 18 years, maximum 50 years |
Daughter’s age | Minimum 1 year |
Sum assured | Minimum rs. 1 lakh; no upper limit (basic sum assured in multiples of rs. 10,000) |
Maximum maturity age | 65 years |
Policy term | 13 to 25 years |
Premium paying term | Policy term minus 3 years |
Premium payment options | Monthly, quarterly, half-yearly, and yearly |
Rider benefits | Available |
Key Benefits of the LIC Kanyadan Policy
The LIC Kanyadan Policy not only ensures a secure financial future for your daughter but also provides a variety of benefits of LIC Kanyadan Policy. Refer to the details below for more information.
- In case death of the insured parent during the policy period in that case premiums are waived off for reduced financial burden on the policyholder.
- If the policyholder dies during the policy term, their beneficiaries will receive a death benefit. This benefit is calculated as either 7 times the annual premium or 110% of the basic sum insured. Additionally, the beneficiaries will also receive the Annual Income Benefit. The LIC Kanyadan Policy also covers accidental death benefits, providing up to Rs. 10 lakh in case of accidental death and Rs. 5 lakh for natural death.
- In case a life-assured person survives throughout the policy maturity term that case policyholder provides a Basic Sum Assured plus vested Simple Reversionary bonuses and a Final Additional Bonus, if any, payable on policy maturity.
- LIC Kanyadan Policy also provides a loan facility to the policyholders after paying at least two full years’ premiums, up to 90% of the surrender value for in-force policies and 80% for paid-up policies.
- Under this scheme, policyholders can also claim tax benefits under Section 80C of the Income Tax Act, 1961.
A practical example of working LIC Kanyadan Policy
Refer to the detailed breakdown below to understand the workings of the LIC Kanyadan Policy
Suppose you’re a 36-year-old planning to purchase LIC Kanyadan Policy for a 15-year term with a sum assured of Rs. 20 lakhs.
Premium Calculation
Policy Benefits of LIC Kanyadan Policy
| DETAILS | AMOUNT (RS.) |
|---|---|
PREMIUM FOR THE FIRST YEAR | 159,816 + 7,192 (4.5% GST) = 167,008 |
PREMIUM FROM SECOND YEAR ONWARDS | 159,816 + 3,596 (2.25% GST) = 163,412 |
| BENEFITS TYPE | AMOUNT (RS.) |
|---|---|
Guaranteed sum insured | 20,00,000 |
Bonus + final additional bonus | 20,00,000 |
Total maturity benefit | 40,00,000 |
Annual income benefit (10% of sum assured) | 2,00,000 x 14 years = 28,00,000 |
Tax Benefits
Policyholders can claim tax benefits under Section 80C of the Income Tax Act, 1961, for the premiums paid, subject to the prevailing tax laws.
This example illustrates the comprehensive coverage and benefits provided by the LIC Kanyadan Policy, ensuring financial security for your daughter’s future.
Exclusions in LIC Kanyadan Policy
Keep in mind the LIC Kanyadan Policy comes with certain terms and conditions under the insurance company rules for suicide.
No claims will be entertained for suicide within 12 months of policy commencement or revival; only 80% of the premiums paid will be refunded.
Surrender and Revival
You can surrender your LIC Kanyadan Policy if premiums have been paid continuously for up to 2 years.
| SURRENDER VALUE TYPE | DETAILS |
|---|---|
GUARANTEED SURRENDER VALUE | Total premiums paid (excluding extra premiums and taxes) multiplied by applicable factors. |
SPECIAL SURRENDER VALUE | Determined by the insurer and subject to IRDAI approval. |
Revival
If you are not able to pay the premiums with in the grace period, the policy will be terminated without any prior notice to the policyholder. But policyholder is also revived his policy within a period of 5 consecutive years from the date of the first unpaid premium.
Buying Process of LIC Kanyadan Policy
The LIC Kanyadan Policy can only be purchased offline. To buy this policy, you can visit the nearest LIC of India office where their experts will guide you through the process. Additionally, you can connect with a licensed LIC agent who can assist you in purchasing the policy and provide detailed information and support throughout the application process.
For more information, you can also visit the Life Insurance Corporation of the India website and see policy wording and premium break up.
Calculate your LIC Kanyadan Policy premium with our LIC Kanyadan Policy calculator.
Conclusion
The LIC Kanyadan Policy offers a valuable solution for securing your daughter’s future, combining protection and savings in one plan. By understanding its features and using the LIC Kanyadan Policy Calculator, you can make an informed decision that aligns with your financial goals. Ensure your daughter’s education and marriage are well-planned with this comprehensive policy.
For more information and to get started with your policy, visit your nearest LIC branch or contact a licensed LIC agent today.
FAQs
To apply for the LIC Kanyadan Policy, visit the nearest LIC office or their official website, fill out the application form, and submit it along with required documents such as identity proof, address proof, age proof, income proof, and passport-sized photographs. Alternatively, you can contact an LIC agent for assistance with the application process.
The LIC Kanyadan Policy can only be purchased offline. To buy this policy, you can visit the nearest LIC of India office where their experts will guide you through the process.
LIC Kanyadan Policy provides financial security specifically for a girl child for their education and marriage expenses.
To purchase the LIC Kanyadan Policy, you need identity proof (Aadhaar Card, PAN Card, Passport), address proof (Utility bills, Rental Agreement, Bank Statement), age proof (Birth Certificate, School Leaving Certificate), income proof (Salary Slip, ITR documents), passport-sized photographs, and a completed proposal form.
To calculate the LIC Kanyadan Policy premium, you can use the LIC Kanyadan Policy premium calculator available on the LIC official website. Enter details such as the policy term, sum assured, and your age to get an estimate of the premium amount. Alternatively, you can consult an LIC agent for a detailed premium calculation.