LIC Kanyadan Policy Details
Aimed at empowering families and ensuring financial security for the girl child, the LIC Kanyadan Policy is proof of LIC's societal responsiveness. When a girl is born in India, most of the parents are concerned about future expenses like education and marriage. Not any more! LIC of India, one of the best life insurance companies in India, has launched the LIC Kanyadan Policy as a comprehensive solution for a strong financial future for a girl child. The premium rate of the LIC Kanyadan Policy is affordable for every individual, from the rural to the urban demographic. Anyone can buy the LIC Kanyadaan policy and contribute to this plan at a very nominal premium price. Let’s read every single detail about Kanyadan Policy LIC.
What is LIC Kanyadan Policy?
LIC Kanyadan Policy is a customized version of the LIC Jeevan Akshay Plan sold by LIC agents or LIC merchants. Kanyadan Policy LIC is a participating, non-linked, individual life insurance plan that provides a dual benefit of protection and savings. With the rising girl child, the financial corpus gets stronger and assists the parent in managing expenses at the important stages of a girl's life. Additionally, your daughter gets the benefits even in your absence. With the LIC Kanyadan Policy, your investment is in safe hands with good returns.
Key Highlights of Kanyadan Policy LIC
Kanyadaan Policy LIC comes with great features to financially secure the future of your girl child. Let’s have a quick look at the key highlights of the plan.
- Only the parent can buy the policy, not the girl child herself
- Life cover during the policy term but before 3 years of maturity date
- Lump-sum maturity amount
- Premium ends if father dies
- Immediate support of Rs. 10 Lakhs in case of accidental demise
- Immediate support of Rs. 5 Lakhs in case of natural demise
- Guaranteed yearly payment of Rs. 50,000 until maturity
- Get the rider benefits to extend the coverage
Eligibility Criteria of Kanyadaan Policy LIC
Read the eligibility criteria and restrictions below carefully before buying the Kanyadan policy of LIC.
| Parameters | Specifications |
|---|---|
| Entry Age of Policyholder | 18 years - 50 years |
| Entry Age of Daughter | Min 1 year |
| Basic Sum Assured | Rs. 1 Lakh - No Limit |
| Maximum Maturity Age | 65 years |
| Policy Term | 13 years - 25 years |
| Policy Paying Term | Policy Term – 3 years |
| Policy Paying Options | Monthly/ Quarterly/ Half- yearly/ Yearly |
LIC Kanyadan Policy Benefits
Achieving the financial security of your girl child is all a parent wishes for. Investing in Kanyadaan Policy LIC is the first step toward the direction and reaching the milestones. Apart from the final maturity benefit provided, the LIC Kanyadan Policy has multiple benefits. Let’s have a quick glance at them in detail.
Death Benefit
In case of the unfortunate death of the life assured during the policy term, a sum assured as the ‘Death Benefit’ is offered to the family. This Sum Assured on Death is 7 times the annualized premium or an amount equal to 110% of the Basic Sum Assured. This death benefit is paid at the time of policy maturity or as an Annual Income Benefit of 10% of the Basic Sum Assured, whichever is higher. The death benefit includes applicable Simple Reversionary Bonuses and Final Additional Bonuses.
Maturity Benefit
In case the life assured survives the complete policy tenure, a Sum Assured on Maturity equal to the Basic Sum Assured is paid to the life assured as the Maturity Benefit. The maturity benefit also includes vested Simple Reversionary Bonuses and Final Additional Bonus, if any.
Assured Protection
In case of uncertain demise of the parent of the life assured, the further premiums are waived off (ends at the date of death), helping the family reduce the financial burden. Additionally, to ensure the financial stability of the family, the Kanayadan Policy LIC pays Rs. 10 Lakh immediately in case of accidental demise. In case of non-accidental or natural death, financial help of Rs. 5 lakh is provided immediately.
Moreover, the family is provided with Rs. 50,000 per year until the date of maturity, which ensures that the family doesn’t face any financial uncertainties.
Dual Benefit
LIC Kanyadan Policy provides the dual benefit of insurance protection and saving advantage. This ensures that the life assured gets financial assistance at important life event, and also stay protected against any uncertainty of life.
Flexible Payouts
Under LIC Kanyadan Policy, the life assured has the option to receive the death benefit or maturity benefit either as a lump sum amount (one-time payment) or in instalments to avail a regular flow of income. The instalments can be spread over a period of a month, quarterly, half-yearly, or annually.
Avail of Loans
Under Kanyadaan Policy LIC, the loan facility is available for financial backup. The loan can only be availed if at least two years of premiums are fully paid and as per the terms and conditions of the corporation. The maximum loan amount for a paid-up policy is 80% of the surrender value, and for an in-force policy, it is 90% of the surrender value.
Tax Benefits
LIC Kanyadan policy also offers tax benefits per the Income Tax Act of 1961. The premiums paid towards the Kanayadaan policy LIC are exempted under Section 80C of the Income Tax Act, 1961, and the benefits are tax-free under Section 10 (10 D).
Explore how can you check LIC policy status and pay LIC premium online.
Additional Features of LIC Kanyadaan Policy
Apart from the benefits mentioned above, there are some additional benefits that the LIC Kanyadaan policy offers to policyholders and parents.
Free Look Period
Kanyadan LIC policy offers a free look period of 15 days, allowing the policyholder to return the policy to the corporation if they are not satisfied with the terms and conditions. They must state the reasons for objections, and the life insurer, LIC of India, will cancel your LIC Kanyadan policy and return the premium amount after deducting certain charges.
Surrender Value
If you cannot continue the LIC Kanyadan Policy, you can surrender it anytime after paying the premiums for at least two consecutive years. Upon surrender, the LIC of India provides the surrender value equal to the Guaranteed Surrender Value or the Special Surrender Value as approved by IRDAI, whichever is higher.
Grace Period
In case the insured forgets to pay the LIC Kanyadan Policy premium within the due date, a grace period is offered to pay the premium and secure the benefits. A 30-day grace period is offered for quarterly, half-yearly and annual premiums and 15 days for monthly premiums from the date of the first unpaid premium.
Rebates
LIC Kanyadan Yojana offers rebates under the premium paying mode and high sum assured as mentioned below
Rebates on Premium Payment Mode:
| Payment Modes | Rebate |
|---|---|
| Yearly Mode | 2% of tabular premium |
| Half-yearly Mode | 1% of tabular premium |
| Quarterly/ Monthly Mode | NIL |
Rebates on High Sum Assured:
| Basic Sum Assured | Rebate |
|---|---|
| 1,00,000 to 1,90,000 | NIL |
| 2,00,000 to 4,90,000 | 2% of Basic Sum Assured |
| 5,00,000 and above | 3% of Basic Sum Assured |
How Does LIC Kanyadan Policy Work?
To understand the workings of LIC Kanyadan Yojana better, look up to the given example and benefits representation.
Say, Mr. Rajput, 35 35-year-old businessman, buys an LIC Kanyadaan policy for his daughter for 15 years. The maximum investment or the sum assured is Rs. 25 Lakhs. This way, he needs to pay the LIC Kanyadan Yojana premium in the following manner
| Age | Policy term | Premium payment term (policy term --3) | Sum assured (in INR) | Any Rider Benefit | Premium paid in the first year (Annual mode) | Premium amount second year onwards |
|---|---|---|---|---|---|---|
| 35 | 15 | 12 (15–3) | 25 lakhs | No | Rs. 1,99,770 + Rs. 8,990 (4.5% GST) = Rs. 2,08,760 | Rs. 1,99,770 + Rs. 4,495 (2.25% GST) = Rs. 2,04,265 |
Benefit for the Life Assured
Kanyadan Policy of LIC offer the following benefit to the life assured
| Plan Benefits | Amount (Rupees) |
|---|---|
| 1. Guaranteed Sum Insured 2. Bonus + Final Additional Benefit | Rs. 2,50,0000 + Rs. 2,50,0000 |
| Benefit 1: Policy maturity returns on 15th year = 1 + 2 (Tax-Free) Benefit 2: Loan availability after 3 years (approx.) |
Rs. 50,00,000 80% of Surrender Value |
LIC Kanyadan Policy Exclusions
LIC Kanyadan Policy typically comes with certain exclusions, which are specific conditions or circumstances under which the life insurance company(Life Insurance Corporation of India) may not be obligated to pay out the death benefit. Common exclusions under LIC Kanyadan Yojana are:
- Suppose the insured parent commits suicide at any time within 12 months from the date of commencement of risk. In that case, the corporation will not pay any claim under LIC Kayandan Policy except for 80% of the total premium paid.
- Suppose the insured parent commits suicide at any time within 12 months from the policy revival date. In that case, the corporation pays 80% of the total premium paid till the date of death or the available surrender value on the date of death, whichever is higher.
Kanyadan Policy LIC Buying Process
LIC of India only allows for offline purchasing of Kanyadaan Policy. You must visit the nearest LIC branch and connect with the expert for offline purchases. You can also buy the LIC Kanyadan policy from the registered LIC agent or LIC Merchants, who will help you understand the benefits in detail and make the buying process much easier. You can also connect with Kanyadan LIC Policy on LIC customer care support.
The buying process of LIC Kayandan Policy is simple and can be completed in minutes once you have clearly understood the policy terms and benefits. Kanyadan Policy of LIC helps your daughter stay financially secure when she needs it most and provides you with the peace of mind to live stress-free.
Know more about the LIC Merchant Portal.
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How to Revive Kanyadan LIC Policy?
If you cannot pay the Kanyadaan policy LIC payment within the due date or allowed grace period, the policy terminates without prior notice, and all the benefits cease. However, the Kanyadan Policy of LIC can be revived within 5 consecutive years from the first unpaid premium and before the maturity date. You just need to pay the outstanding premiums with half-yearly compounding interest (decided by the LIC of India) to revive the Kanyadan LIC Policy. LIC Kanyadan Policy revival is only considered once the corporation accepts and issues the receipt of the revival. Note that the revival of the rider (if opted) is only considered when the policy is revived, not in separation.
Explore the Sukanya Samriddhi Yojana benefits to provide a financially bright future for your Girl Child.
Final Words
Different types of LIC life policies, including the LIC endowment plan, LIC term plan, LIC ULIP plans, the LIC Pension plan, and LIC child plan provide different benefits to the policyholder. LIC Kanyadan Policy falls under the LIC child plan for girl children and is the perfect option to secure your child’s future. We have mentioned that the Kanyadan policy benefits the daughter and the parent in the most crucial time of need. LIC of India has also provided a PDF of the Kanyadan Policy in Hindi so that more people can benefit from it.
To get more information on the LIC Kanyadan Policy, you can connect with a life insurance agent or LIC agent nearby. You can search for an insurance agent near you by RenewBuy Advisor Connect, the go-to advisor search platform.