LIC offers a unique scheme called the LIC Kanyadan Policy, which can be used to secure a child’s future, education, or wedding expenses. This scheme has zero risks and is tailored for your daughter’s benefit.
Under this policy, if you opt for a 25-year term plan, you will have to pay the premium for 22 years, and the policy will mature after 25 years.
The premium payment can be made monthly, quarterly, semi-annually, or annually. The policy starts from a minimum of 1 lakh rupees without a maximum limit.
Upon maturity of the policy, a lump sum of 22.5 lakh rupees will be received. Additionally, suppose the policyholder, who must be the father of a girl aged between 18 and 50, passes away in a road accident. In that case, the nominee will receive a death benefit of Rs 10 lakh.
Furthermore, after the third year of the policy, there is an option for a loan facility, and the policy can be surrendered at any time after two years. Additionally, a grace period of 30 days is provided for premium payment.
Moreover, the premiums paid for this policy are eligible for tax exemption under Section 80C. Also, if the policyholder dies during the term, the nominee will receive 1 lakh rupees annually until the policy completion, after which the maturity amount will be paid out.
Kanyadan Insurance Policy Details
- It is a Term Insurance plan with a policy term of 13-25 years.
- You can choose from monthly, quarterly, half-yearly, or yearly premium payment frequencies.
- Upon maturity, you will receive a substantial amount, which includes your savings, bonus, and final bonus, making this policy a valuable investment for your daughter’s future.
- To be eligible to invest in this policy, the father’s age should be less than 50 years.
Here are some key points about the LIC Kanyadan Policy:
- Loan Eligibility: Investors can take a loan within three years of purchasing the LIC Kanyadan policy.
- Surrender Option: After holding the policy for two years, investors can surrender it.
- Grace Period for Premium Payment: Policyholders can pay the premium during the grace period. If the premium is not paid in any month, it can be paid within 30 days without penalty.
- Tax Benefits:
- Premium payments are eligible for exemption under Section 80C.
- Maturity amounts are eligible for tax benefits under Section 10D.
Maturity Benefits: If you invest in the LIC Kanyadan policy for 25 years, the annual investment amount will be Rs. 41,367, translating to a monthly premium of approximately Rs. 3,447. After 25 years of investment, the maturity amount will be around Rs. 22.5 lakhs.
Death Benefit: In the event of the father’s death during the policy period, the child will not be required to pay the premium, and it will be waived.
Additionally, for a girl child investing for 25 years, a lump sum of Rs. 1 lakh will be provided after maturity. If the father dies in a road accident, an additional accidental death benefit of Rs 10 lakh will be provided to the nominee.