Introduction: Why LIC Kanyadan Policy Matters for Every Parent
Every parent dreams of giving their daughter the best possible future—quality education, a secure marriage, and lifelong financial independence. Rising education costs and marriage expenses make long-term financial planning essential.
The LIC Kanyadan Policy, designed by the Life Insurance Corporation of India (LIC), is a powerful solution that combines life insurance protection and disciplined savings to secure a daughter’s future. Based on LIC Jeevan Lakshya, this policy ensures that even in the absence of the earning parent, the child’s dreams remain protected.
What Is LIC Kanyadan Policy?
The LIC Kanyadan Policy is a life insurance-cum-savings plan specifically structured to meet a girl child’s financial needs. Although the policy is managed by the parent or guardian, the benefits are designed entirely for the daughter.
- Policy tenure ranges from 13 to 25 years
- Premium payments stop 3 years before maturity
- The girl child has no direct control over the policy
- In case of an unfortunate event, LIC takes care of future premiums and payouts
Eligibility Criteria for LIC Kanyadan Policy
| Criteria | Details |
|---|---|
| Entry Age (Parent) | 18 to 50 years |
| Entry Age (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 | ₹1,00,000 |
| Maximum Sum Assured | No upper limit |
| Who Can Buy | Only parents or legal guardians |
Who Should Buy LIC Kanyadan Policy?
This policy is ideal for:
- Parents planning long-term financial security for their daughter
- Families seeking insurance + savings in one plan
- Individuals looking for tax benefits under Section 80C
- Parents wanting guaranteed protection even after their demise
- Families planning for higher education or marriage expenses
Key Features and Benefits of LIC Kanyadan Policy
1. Complete Financial Security
If the policyholder passes away during the policy term:
- All future premiums are waived
- LIC pays immediate lump sum
- Annual income benefit continues until maturity
2. Annual Income Benefit
LIC pays 10% of the Sum Assured every year to the nominee after the policyholder’s death, ensuring regular income for the family.
3. Maturity Benefits
On survival till maturity:
- Full Sum Assured
- Simple Reversionary Bonus
- Final Additional Bonus (if applicable)
4. Accidental & Non-Accidental Death Benefit
- Accidental death: Immediate ₹10 lakh payout
- Non-accidental death: Immediate ₹5 lakh payout
5. Flexible Premium Payment
Premiums can be paid:
- Monthly
- Quarterly
- Half-Yearly
- Yearly
Payment terms available: 6, 10, 15, or 20 years
6. Loan Facility
- Up to 90% of surrender value for active policies
- Up to 80% for paid-up policies
7. Tax Benefits
- Premiums eligible for deduction under Section 80C
- Maturity amount tax-free under Section 10(10D)
LIC Kanyadan Policy Details at a Glance
| Particulars | Details |
|---|---|
| Policy Term | 13–25 Years |
| Premium Modes | Monthly / Quarterly / Half-Yearly / Yearly |
| Riders Available | Yes |
| Loan Availability | Yes |
| Surrender | After 3 years |
| Free Look Period | 15 days |
| Revival Period | Up to 5 years |
Policy Exclusions You Must Know
- Suicide Clause:
If suicide occurs within 12 months, only 80% of premiums paid (excluding taxes) are refunded. - Grace Period:
- 30 days (Annual, Half-Yearly, Quarterly)
- 15 days (Monthly)
Surrender and Loan Provisions
Surrender Value
- Available after paying 2 full years of premiums
- Calculated as Guaranteed or Special Surrender Value
Loan Facility
- Active Policy: Up to 90%
- Paid-up Policy: Up to 80%
LIC Kanyadan Policy Illustration (Example)
Policyholder: Mr. Sharma (Age 36)
Policy Term: 15 Years
Sum Assured: ₹25 Lakh
| Details | Amount |
|---|---|
| Annual Premium | ₹1,99,770 + GST |
| Maturity Benefit | ₹25 Lakh + Bonus |
| Total Benefit | ₹87.5 Lakh (Tax-Free) |
How to Apply for LIC Kanyadan Policy
LIC Kanyadan Policy is available offline only.
Step-by-Step Application Process
- Visit nearest LIC Branch
- Consult an LIC Agent
- Submit documents
- Choose policy term & premium mode
- Complete medical and verification process
- Receive policy bond
Documents Required
For Girl Child
- Birth Certificate
- Passport-size Photograph
For Parent/Guardian
- Aadhaar / PAN / Voter ID
- Address Proof
- Income Proof
- Bank Details (Cancelled Cheque)
- Valid Mobile Number
LIC Kanyadan Policy Revival
If the policy lapses:
- Can be revived within 5 years
- Pay pending premiums with interest
- Revival subject to LIC approval
Internal Linking Suggestions
- Child Education Investment Plans
- LIC Jeevan Lakshya Policy Review
- Best Insurance Plans for Girl Child
- Government Schemes for Girl Child
Frequently Asked Questions (FAQs) – LIC Kanyadan Policy
1. What is LIC Kanyadan Policy?
LIC Kanyadan Policy is a life insurance cum savings plan offered by LIC of India to help parents secure their daughter’s education, marriage, and future financial needs. It provides both protection and long-term savings benefits.
2. Who can buy the LIC Kanyadan Policy?
Only the father or mother (or legal guardian) of a girl child can purchase this policy. The policy cannot be bought directly in the daughter’s name.
3. What is the minimum and maximum age limit for LIC Kanyadan Policy?
- Parent’s age: 18 to 50 years
- Daughter’s age: Minimum 1 year
- Maximum maturity age: 65 years
4. How much maturity amount can be received under LIC Kanyadan Policy?
The maturity amount depends on the sum assured, policy term, and bonuses. With a higher sum assured and long-term policy, parents can build a corpus of up to ₹27 lakh or more, including bonuses.
5. What happens if the policyholder dies during the policy term?
In case of the policyholder’s death:
- All future premiums are waived
- LIC pays an immediate lump-sum amount
- The nominee receives annual income benefits until maturity
This ensures the daughter’s financial security.
6. Are there tax benefits under LIC Kanyadan Policy?
Yes.
- Premiums paid are eligible for tax deduction under Section 80C
- Maturity and death benefits are tax-free under Section 10(10D) of the Income Tax Act, 1961.
7. Can I take a loan against LIC Kanyadan Policy?
Yes. After paying at least two full years of premiums, you can avail a loan:
- Up to 90% of surrender value for active policies
- Up to 80% for paid-up policies
8. Is there a premium payment flexibility in this policy?
Yes. Premiums can be paid:
- Monthly
- Quarterly
- Half-yearly
- Yearly
You can also choose premium payment terms like 6, 10, 15, or 20 years.
Important Links
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Conclusion: Is LIC Kanyadan Policy Worth It?
The LIC Kanyadan Policy is a powerful long-term financial tool for parents who want guaranteed protection, disciplined savings, and peace of mind. With premium waiver benefits, annual income support, and tax-free maturity, it ensures that your daughter’s dreams never suffer—even during life’s toughest moments.
If you’re planning today for your daughter’s tomorrow, LIC Kanyadan Policy is a strong and reliable choice.
Disclaimer:
This article is for informational purposes only. Policy benefits and features are subject to change. Always verify details with LIC or an authorized LIC agent before investing.
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