Investment Plans November 17, 2020

Differences Between  Sukanya Samriddhi Yojana & LIC Kanyadan Policy

Every parent needs the best for their children. And if you are looking for an investment for your daughter, two types of investment will be great for you. First is the Sukanya Samriddhi Yojana that provides a lump sum of funds when the girl child reaches the age of 18 years. The policy fund can be used for higher education, and if the girl gets married after that age, the fund can be used for her wedding expenses too. It means the policy will be a win-win situation for you. The other policy that competes with Sukanya Samriddhi Yojana is the LIC Kanyadan Policy, which is a modified version of the LIC Jeevan Lakshya Plan. So, read the difference between Sukanya Samriddhi Yojana & LIC Kanyadan Policy here and see which is better for your daughter.

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Sukanya Samriddhi Yojana & LIC Kanyadan Policy Eligibility Differences

Let’s have a look at the eligibility criteria for both these policies and see which is easy to apply –

Sukanya Samriddhi Yojana

  1. The policy is purchased in the name of a girl child before she reaches the age of 10
  2. Only the Indian National Residents can buy this policy
  3. Your daughter in whose name the policy has been purchased will be the holder of the savings account scheme until her marriage
  4. Your daughter can operate the account until 21 or until she is married after 18

LIC Kanyadan Policy

  1. Your age should be 18 to 50 years if you are purchasing the LIC Kanyadan Policy. And the daughter must be at least a year old.
  2. Both Indian National Residents and Non-resident Indians (NRIs) can buy this policy
  3. The father of the girl child will be the account holder
  4. LIC Kanyadan Policy maturity age for the girl child is 13 to 25 years

Differentiation in the Feature of Sukanya Samriddhi Yojana & LIC Kanyadan Policy

After knowing the Sukanya Samriddhi Yojana & LIC Kanyadan Policy eligibility, let’s find out the offerings of both so that you can compare better.

Sukanya Samriddhi YojanaLIC Kanyadan Policy
The minimum amount for opening a Sukanya Samriddhi account is INR 750When the insured girl child dies after buying this policy, you won’t have to pay the premium. And the LIC will pay INR 1 lakh each year.
The minimum annual deposit in the Sukanya Samriddhi account should be INR 750 each yearIf the insured girl child dies, her family will get a death benefit of INR 5 lakh immediately
Interest on your Sukanya Samriddhi Account will be revised every quarter, like any other small savings instrument. Currently, the Sukanya Samriddhi account interest is 8.1% per annum, which is compounded yearly.LIC Kanyadan Policy death benefit will be paid in an annual installment
Apart from getting the higher interest rate, you can also get tax exemptions on your Sukanya Samriddhi Account.Get a bonus from LIC every year
A maximum contribution into Sukanya Samriddhi account is up to INR 1.50 lakh in a financial year. And under this, you can get a tax deduction under Section 80C of the Income Tax Act.
Note - your earned interest and maturity amount is non-taxable.
If the insured child dies in an accident, the family will get INR 10 lakh compensation
If you open a Sukanya Samriddhi Account and make deposits up to 15 years, the account will only earn interest as per the applicable rates after the said period.If you deposit INR 75 daily, after 25 years of paying the premium, INR 14 lakh will be provided till the time your daughter reaches the age of marriage.
A Sukanya Samriddhi account will mature on completion of 21 years from the date of its opening.If you are saving INR 251 on LIC Kanyadan Policy regularly, you will get INR 51 lakh after 25 years of premium payment
This savings account is opened for girls up to the age of 10 years (as per the child birth certificate). And the guardian can open only one Sukanya Samriddhi account. Maximum two accounts in the name of two different girl children in post offices and designated banks can be opened.If you want, you can keep paying the policy premium every year even after the girl child marriage
You can make partial withdrawal when the girl child reaches the age of 18. So the fund can be used for education or marriage expenses. The withdrawal is limited to up to 50% of the balance standing at the end of the preceding financial year.If you save INR 75 per day on LIC Kanyadan Policy, you will get INR 11 lakh for your daughter’s wedding
Sukanya Samriddhi Account premature closure will be allowed for the account holder’s marriage if she has attained the age of 18When LIC Kanyadan Policy 25 years is completed, LIC will pay the nominee INR 27 lakh separately.

Required Documents for Sukanya Samriddhi Yojana & LIC Kanyadan Policy

If you choose any of the policies, you must know the documents you need during the process. Let’s look at the below-listed documents.

Sukanya Samriddhi Yojana –

  1. Girl Child Birth Certificate
  2. Address proof of the parent or guardian, such as electricity bills, telephone bills, copy of Aadhaar and passport
  3. Identity proof of the parent or legal guardian, such as voter id card, PAN card, Aadhaar card, driving license, passport, etc. (any one)

 LIC Kanyadan Policy –

  1. Girl child birth certificate
  2. Identity proof of the parent or legal guardian, such as voter id card, PAN card, Aadhaar card, driving license, passport, etc. (any one)
  3. Address proof of the parent or guardian, such as electricity bills, telephone bills, copy of Aadhaar and passport
  4. Income proof of the parent or legal guardian, such as salary certificate, income tax return report, bank statement, Form 16, etc.

How To Apply for Sukanya Samriddhi Yojana & LIC Kanyadan Policy

Made your decision between Sukanya Samriddhi Yojana & LIC Kanyadan Policy after checking the features and eligibility? It’s time you check the application procedure for both.

Sukanya Samriddhi Yojana 

  1. Visit the Post Office, your bank, or Sukanya Samriddhi Yojana official website
  2. Fill up the form that you will get from the Post Office, your bank, or Sukanya Samriddhi Yojana official website
  3. Submit this duly filled form along with the above-mentioned documents to the concerned person

Once the verification is done, your account will be ready for deposits.

LIC Kanyadan Policy

  1. Visit the LIC official website
  2. Select ‘LIC Kanyadan Policy’
  3. Fill the online form
  4. Submit the duly filled form along with the above-mentioned documents

Once the process is completed and all the details have been verified, you will be notified via mail or message. You can also apply for the same by going to your nearest LIC branch by performing all the steps offline.

Both Sukanya Samriddhi Yojana & LIC Kanyadan Policy provides financial security to the girl child. You can choose either of the schemes as per your preference or requirement.

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