LIC Kanyadan Policy
The LIC Kanyadan Policy is widely marketed as a plan that helps parents secure the future of their daughters, especially for important milestones like higher education and marriage. However, it is important to clarify that LIC does not officially offer a product titled “Kanyadan Policy.” The plan referred to as the Kanyadan Policy is actually the LIC Jeevan Lakshya Plan (Plan No. 933, UIN: 512N297V03) — a life insurance policy that blends savings with protection.
Let’s explore this plan in detail.
What is LIC Jeevan Lakshya (Kanyadan Policy)?
LIC’s Jeevan Lakshya is a Par, Non-linked, Life, Individual Savings Plan that offers:
- A lump sum at maturity, irrespective of survival of the policyholder.
- An Annual Income Benefit to support the family in case of the policyholder’s untimely demise.
- Bonus participation and optional rider benefits.
This plan is ideal for parents who wish to ensure that their daughter’s financial needs are taken care of, even if the parent is not around.
Key Features of Kanyadan Policy
| Feature | Details |
|---|---|
| Entry Age | 18 to 50 years |
| Maturity Age | 31 to 65 years |
| Policy Term | 13 to 25 years |
| Premium Paying Term | Policy Term minus 3 years |
| Basic Sum Assured | ₹2,00,000 minimum, no upper limit |
| Sum Assured Multiples | ₹10,000 (up to ₹4 lakh), ₹50,000 (above ₹4 lakh) |
| Premium Payment Modes | Yearly, Half-yearly, Quarterly, Monthly (NACH) |
| Loan Facility | Available after 1 full year’s premium |
| Riders Available | Accidental Death & Disability, Accident Benefit, New Term Assurance |
Benefits of LIC Kanyadan Policy
1. Death Benefit
In case of death of the life assured during the policy term (while in force):
- Annual Income Benefit: 10% of Basic Sum Assured from policy anniversary after death till one year before maturity.
- On Maturity Date: 110% of Basic Sum Assured + vested Simple Reversionary Bonuses + Final Additional Bonus (FAB), if any.
- Minimum Payout: At least 105% of total premiums paid till date of death.
🔸 The annual income benefit continues even after the policyholder’s death — ensuring the daughter receives a regular income.
2. Maturity Benefit
If the policyholder survives till the policy term:
- Maturity Sum Assured: 100% of Basic Sum Assured
- Plus Bonuses: Simple Reversionary Bonuses + Final Additional Bonus (if applicable)
3. Participation in Profits
The policy earns:
- Simple Reversionary Bonuses annually.
- Final Additional Bonus upon maturity or death claim (if eligible).
4. Loan Facility
- After 1 full year’s premium is paid.
- Loan up to 75% of surrender value under in-force policy.
5. Premium Waiver
In case of death during the term:
- Future premiums are waived.
- Policy continues with benefits intact.
Riders for Extra Protection
- LIC’s Accidental Death & Disability Benefit Rider: Pays additional sum in case of accidental death or monthly benefits for accidental disability.
- LIC’s Accident Benefit Rider: Lump sum payout for accidental death.
- LIC’s New Term Assurance Rider: Additional term life cover during policy term.
Sample Premium Table
For ₹2,00,000 Basic Sum Assured (standard life), yearly premiums (exclusive of taxes) are approximately:
| Age | Term 13 yrs | Term 15 yrs | Term 20 yrs | Term 25 yrs |
|---|---|---|---|---|
| 20 yrs | ₹20,217 | ₹16,670 | ₹11,711 | ₹9,006 |
| 30 yrs | ₹20,286 | ₹16,758 | ₹11,858 | ₹9,222 |
| 40 yrs | ₹20,678 | ₹17,209 | ₹12,495 | ₹10,074 |
| 50 yrs | ₹22,030 | ₹18,698 | – | – |
Tax Benefits
- Premiums eligible for deduction under Section 80C.
- Maturity and death benefits are tax-free under Section 10(10D), subject to prevailing tax rules.
How to Buy Kanyadan Policy
You can purchase this plan:
- Offline via LIC agents or branches.
- Not available directly online as of now.
LIC’s Jeevan Kanyadan Policy
- Sales Brochure (Content is in English)
- Policy Document (Content is in English)
- CIS LIC’s Jeevan Lakshya (Content is in English)
Important Notes
- LIC Jeevan Lakshya is not officially titled as “Kanyadan Policy”.
- Marketing under this name is a strategy used by agents to target parents of girl children.
- Always buy through authorized LIC channels and insist on the policy brochure.
Example Scenario
Father, Age 35, buys LIC Jeevan Lakshya for 25 years with ₹10,00,000 sum assured:
- Premium Paying Term: 22 years
- If death occurs in 5th year:
- Annual income: ₹1,00,000 × 20 years = ₹20,00,000
- Maturity payout: ₹11,00,000 + bonuses (say ₹5,00,000) = ₹16,00,000
- Total payout to nominee (daughter): ₹36,00,000 (approx.) tax-free
Final Thoughts
The so-called LIC Kanyadan Policy is one of the most meaningful insurance plans for parents looking to financially secure their daughter’s future. While it may not be officially named so, LIC Jeevan Lakshya offers the features, structure, and benefits that align perfectly with the needs of families planning ahead for education or marriage.
