LIC Kanyadan Policy: Benefits, Features, Eligibility Criteria and Exclusions

LIC Kanyadan policy is designed for your daughter. Unlike other insurance plans, this policy acts as a backup fund for the future expenses of your daughter relating to her marriage and education. LIC has launched the LIC Kanyadan Policy to provide financial assistance to the parents. The Kanyadan Policy covers risks along with the option of savings until the term ends. Hence, this policy is an ideal plan for the parents with very low premiums and high Sum Assured options. Read this post below to know further details of the LIC Kanyadan Policy.

Eligibility for LIC Kanyadan Policy

You can buy the LIC Kanyadan Policy for 13 to 25 years. Under the LIC Kanyadan Policy, you need to pay the premium for less than 3 years of your policy term. You can buy LIC Kanyadan Policy at a minimum premium of INR 1 lakh. To buy this policy, the minimum age of the child’s father should be between 18 to 50 years and the minimum age of the daughter should be 1 year. LIC Kanyadan Policy can be purchased according to different ages of the parent and daughter. The time limit of this policy will be reduced according to the age of the daughter. You can pay less or more premium in this policy, as per your suitability. The minimum Sum Assured at the time of policy maturity is INR 1 lakh. There is no limit for the maximum Sum Assured. It will depend on the premium amount you pay.

LIC Kanyadan Policy Premium Payment

Under the LIC Kanyadan policy, you can increase or decrease the premium payment according to your income. You can pay the premium for Kanyadan Policy according to your convenience. The premium is to be paid daily, in 6 months, 4 months, or 1 month. You can pay the premium when you want.

Features of LIC Kanyadan Policy

1. Under this policy, you can get several benefits. Look at the pointers below to know about them.
2. If a person dies after subscribing to the policy, his family members won’t have to pay the premium. Plus, LIC will pay 1 lakh every year to his family members. Once the policy completes 25 years, LIC will pay the nominee 27 lakh separately. This insurance policy is ideal for someone wanting funds for his daughter’s education and marriage.
3. If the insured dies, his/her family will get INR 5 lakh immediately
4. During the policy, the death benefit will be paid in an annual installment
5. In this Policy, you can get the benefit of a bonus declared by LIC every year
6. If the insured dies in an accident, his/her family gets INR 10 lakh
7. If a person deposits 75 rupees daily, then after 25 years of monthly premium payments, 14 lakh rupees will be provided at the time of the marriage of the daughter.
8. If you save INR 251 daily, you will be given INR 51 lakh after 25 years of premium payment
9. You can keep paying the policy premium every year even after the girl child is married
10. You can save INR 75 per day to get INR 11 lakh for your daughter’s wedding

What Documents Do I Need for the LIC Kanyadan Policy?

The entry age of the applicant should be between 18 and 50 years. And to purchase the Kanyadan Policy, you need to submit the following documents:

1. Aadhar Card
2. Income certificate
3. Identity card
4. Address proof
5. Passport size photo
6. Duly filled and signed form of the proposal for the scheme
7. Cheque or Demand Draft of the first premium
8. Girl child birth certificate

Can You Borrow a Loan Against LIC Kanyadan Policy?

Yes, you can apply for a loan by pledging the Kanyadan policy as collateral. If the policy is active and you have paid the premiums for 3 consecutive years, you can borrow a loan against your Kanyadan Policy.

Tax Benefit of LIC Kanyadan Policy

Under Section 80C of the Income Tax Act 1961, you can claim tax exemption on your Kanyadan Policy on your paid premiums. The tax exemption is a maximum of up to INR 1.5 lakh. And you can get the tax exemption on the maturity or death of the insured under section 10(10D).

Exclusions from LIC Kanyadan Policy

You can’t claim any benefits or additional coverage if you commit suicide within 12 months from the initiation of the Kanyadan Policy.

Free Look Period

A free look period of 15 days is provided to you from the date of commencement. And if you are not satisfied with any of the Kanyadan policy terms and conditions, you can return the same within the free look period.

Grace Period

A grace period of 30 days is provided to you during which you are not charged with any late fees or penalty if the due date for premium payment is over. The grace period is allowed for annual, biannual, or quarterly premium payments. And 15 days of the grace period is allowed for monthly premium payments. If the policy grace period is expired, your Kanyadan Policy will be terminated.

Surrender Value

You can surrender the Kanyadan Policy anytime after paying the premium for at least 3 consecutive years. The guaranteed surrender value is the total percentage of total paid premiums excluding the rider premiums, which depend on your policy term and the year of policy surrender.

Key Features of LIC Kanyadan Policy

Kanyadan policy comes out with great features. Some of them are mentioned below

1. It empowers the financial future of your girl child
2. It covers the policyholder from life risk up to 3 years before the maturity
3. It offers a lump sum amount at the time of policy maturity
4. It offers waived off premium if the daughter’s father is expired
5. It offers INR 10 lakh in the case of accidental demise of the policyholder
6. It offers INR 5 lakh in case of non-accidental/natural demise of the policyholder
7. It offers INR 50,000 every year until the maturity date after the demise of the policyholder
8. It offers full amount at the time of maturity
9. LIC Corporation Ltd. offers LIC Kanyadan policy to even those who stay outside India