What is the LIC Kanyadan Policy?
The LIC Kanyadan Policy helps parents save money for their daughter’s wedding and education. It provides life insurance along with a way to gather funds over time for future wedding needs. Families gain security knowing they are preparing for these important events. LIC Jeevan Lakshya 933 is another name for this scheme.
The primary goals of the LIC Kanyadan Policy are:
- Supporting a daughter’s marriage financially.
- Provide the policyholder with life insurance.
- Significant savings are made by consistent, regular premium payments.
Key Features of LIC Kanyadan Policy
- Policy Tenure and Premium Payment Term: The policy’s term is usually between 10 and 25 years, and the premium payment terms are open.
- Death Benefit It ensures the policyholder’s family is financially supported if they die. The nominee receives the sum assured.
- Maturity Benefit: Upon maturity, the policyholder receives the sum assured along with bonuses, if any.
- Loan Facility: Policyholders can avail of loans against the policy, providing liquidity when needed.
- Rebates and Discounts: Discounts are available for higher sum-assured amounts, encouraging parents to invest more for their daughters’ futures.
- Additional Riders and Benefits: The Accidental Death and Disability Benefit Rider, the Critical Illness Rider, and the waiver of premium riders are added to the insurance coverage.
Criteria for Eligibility
Who Can Apply for the LIC Kanyadan Policy?
Parents or legal guardians who want to protect their girls’ future can get the LIC Kanyadan Policy. Here are the requirements to be able to apply:
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- Age of the insured: The insured must be at least 18 and no more than 50. The coverage must cover the daughter, who must be at least one year old when she signs up.
- Sum guaranteed: The least amount that can be guaranteed is ₹1 lakh, and there is no maximum.
- Age at Maturity: The oldest insured person who can reach maturity is 65.
- Policy Term: The policy term is anywhere from 13 to 25 years.
- Premium Payment Term: Thirty years less than the insurance term is the premium payment term.
- Who can purchase the policy? For some reason, the girl cannot apply for the policy; only the mother or father may do so.
Documentation Required for Application
To apply for the LIC Kanyadan Policy, the following documents are generally required:
- Identity Proof
- Address Proof
- Income Proof
- Age Proof of Daughter
Premium Payment Information
Calculating the Premium:
The sum assured policy term and the policyholder’s age influence the premium amount.
Premium payments allow one to pay them at several frequencies:
- Annual
- Half-Yearly
- Quarterly
- Monthly
Paying Premium Online and Offline Options
LIC offers several payment alternatives, including online payment via its website, mobile app, and offline payments at LIC locations.
You can also check our Premium and Maturity Calculator.
Benefits of LIC Kanyadan Policy
- The LIC Kanyadan Policy guarantees funds are ready for marriage expenditures, providing financial security for the daughter’s marriage.
- Funding for Education: One can also use the mature benefit for educational costs.
- Tax Benefits Under Section 80C and 10(10D): The maturity amount is tax-free, and premiums paid are qualified for tax deductions.
- Apart from savings, the policy offers life insurance for the policyholder.
Comparing LIC Kanyadan Policy with Other Plans
| Feature | LIC Kanyadan Policy | LIC Jeevan Lakshya Policy | LIC New Endowment Plan |
| Target Audience | Parents of daughters | General public | General public |
| Maturity Benefit | Yes | Yes | Yes |
| Death Benefit | Yes | Yes | Yes |
| Loan Facility | Yes | Yes | Yes |
| Tax Benefits | Yes | Yes | Yes |
Steps to Apply for the LIC Kanyadan Policy
Online Application Process
- Visit the LIC website.
- Fill out the online application form.
- Upload the required documents.
- Make the premium payment.
Offline Application Process
- Visit the nearest LIC branch.
- Obtain the application form.
- Submit the completed form along with required documents.
- Make the premium payment.
Understanding the Maturity Benefit
How the Maturity Benefit is Calculated
The maturity benefit is calculated on the sum assured, the duration of the policy, and any bonuses accrued.
Options for Receiving the Maturity Amount
Policyholders can receive the maturity amount as a lump sum or in instalments.
Tax Implications on Maturity Amount
The maturity amount is tax-free under Section 10(10D) of the Income Tax Act, provided the premium does not exceed 10% of the sum assured.
Information about Death Benefits
Understanding the Death Benefit in Case of the Policyholder’s Death
In the unfortunate event of the policyholder’s death, the nominee receives the sum assured, ensuring financial stability for the family.
How the Death Benefit is Paid
The death benefit is paid as a lump sum to the nominee.It is also tax-free under Section 10(10D).
Additional Riders Available
- Accidental Death and Disability Benefit Rider: Provides additional coverage in case of accidental death or disability.
- Critical Illness Rider: Offers a lump sum upon diagnosis of critical illnesses.
- Waiver of Premium Rider: Waives future premiums in case of the policyholder’s disability or death.
Limitations in LIC Kanyadan Policy
Cases Where the Policy May Not Pay Out:
- Death due to suicide within the first year of the policy.
- Death due to involvement in illegal activities.
Expert Insights on LIC Kanyadan Policy
Financial advisors emphasise the importance of planning for future expenses and recommend the LIC Kanyadan Policy as a reliable option.Experts believe the policy provides financial security and encourages disciplined savings among parents.
Frequently Asked Questions (FAQs)
What happens if the policyholder is unable to make a premium payment?
The policy may lapse, but there is usually a grace period to make the payment.
Can the Policy Be Transferred or Surrendered?
Yes, the policy can be surrendered but may involve financial implications.
What Are the Tax Benefits of the Policy?
Premiums paid are eligible for tax deductions up to 10 lakh, and the maturity amount is tax-free.
Is the LIC Kanyadan Policy Suitable for Every Parent?
It is particularly beneficial for parents planning their daughters’ marriage and education.
Common Mistakes to Avoid During Policy Buying
- Not Understanding the Policy Terms: Ensure you read and understand the document.
- Missing Premium Payments: Set reminders to avoid lapsing the policy.
- Not Considering Additional Riders: Evaluate the need for riders to enhance coverage.
How to Maximize the Benefits of LIC Kanyadan Policy
- Tips for Choosing the Right Sum Assured: Assess future expenses to determine an appropriate sum assured.
- Importance of Timely Premium Payments: Consistent payments realise policy benefits.
- Leveraging Riders for Comprehensive Coverage: Consider additional riders based on your family’s needs.
Renewal Process
How to Renew the LIC Kanyadan Policy
- Renewal can be done online or offline, similar to the application process.
Steps for Online Renewal
- Log in to your LIC account.
- Navigate to the renewal section.
- Make the payment.
What to Do If the Policy Lapses
Contact LIC customer service to understand the reinstatement process.
How to Surrender the LIC Kanyadan Policy
To surrender, submit a request at the nearest LIC branch along with the policy document.
Financial Implications of Surrendering the Policy
Surrendering the policy may result in loss of benefits and potential financial loss.
Financial Implications of Surrendering the Policy
Consider taking a loan against the policy instead of surrendering it.
Customer Reviews on LIC Kanyadan Policy
Positive Reviews
Many policyholders praise the LIC Kanyadan Policy for its reliability and benefits.
Negative Feedback
Some customers have expressed concerns about premium payments, which LIC addresses through customer support.
Final Thoughts on the LIC Kanyadan Policy
Investing in the LIC Kanyadan Policy can be a significant step towards ensuring your daughter’s financial security.
Consider applying for the LIC Kanyadan Policy today to secure your daughter’s future. Visit the LIC website or your nearest branch for more information.