Kanyadan Policy LIC: Secure your daughter’s future with this Intelligent Investment Plan
November 6, 2025
When making plans for your daughter’s education as well as marriage and financial security The LIC Kanyadan Policy is a unique combination of savings and life insurance to ensure a better prospect for the future of her. The insurance policy for endowment by the Life Insurance Corporation of India (LIC) is intended to protect your financial assets and build a fund to help your daughter reach her milestones. In this article we’ll dive in the the Kanyadan Policy LIC, its characteristics, benefits and how it can be an excellent option to ensure your daughter’s financial future.
What is the LIC Kanyadan Policy?
The LIC Kanyadan Policy is a savings-cum-protection plan designed to support parents in securing their daughter’s future. It allows parents to create an account to help your daughters’ educational needs, marriage or other significant events through a combination of insurance protection as well as savings for a specified time.
The plan offers the the policyholder (parent) with a life insurance that guarantees that in the event that the policyholder dies within the duration of the policy the premiums will be reduced, and the policy continues to mature to the child. Furthermore, it comes with an maturity benefit which can be used to help fund her future plans.
Key Features of the LIC Kanyadan Policy
Here’s a summary of the principal characteristics that make up the Kanyadan Policy of the LIC:
| Feature | Description |
|---|---|
| Entry Age | Minimum age: 18 years; Maximum age: 50 years |
| Policy Term | 13 to 25 years (depends on the age of the policyholder) |
| Sum Assured | Minimum Rs1 lakh; no upper limit |
| Premium Paying Term | Premium payment term is policy term minus 3 years ( |
| Policyholder’s Life Cover | Life insurance provides financial security for the family members of the policyholder if the policyholder dies within the period. |
| Maturity Benefit | Sum Assured plus Bonuses are paid out at the expiration of the policy. |
| Loan Facility | A loan may be used against the insurance policy after two years of premium payments. |
Benefits of the LIC Kanyadan Policy
The LIC Kanyadan Policy offers a number of benefits for parents who want to ensure the future of their child. Let’s examine the most important advantages in greater detail:
1. Financial Protection for the Family
If the owner of the policy (parent) dies within the period that the plan is in force, future premiums will be waived and the policy will continue to be in effect. The assured amount, as well as bonuses are paid at moment of the policy’s maturity.
| Benefit | Details |
|---|---|
| Death Benefit | If the policyholder dies within the period of the policy the beneficiary will receive the assured amount. |
| Premium Waiver | Future premiums will be waived in the event of the death of the policyholder. |
| Policy Continues | In the event of passing away, the insurance policy remains in force, and the amount guaranteed is paid at the time of maturity. |
2. Maturity Benefit
It also provides an maturity benefit at the end of the policy that could be used to pay for your daughter’s education or wedding objectives. It is the total amount guaranteed together with any bonus accrued during the term of the policy.
| Benefit | Details |
|---|---|
| Maturity Sum Assured | The amount assured will be paid at the conclusion of the term of the policy and any bonus. |
| Bonuses | The policy is a part of the corporation’s Life Fund and is eligible for bonus payments. |
3. Tax Benefits
This LIC Kanyadan Policy offers tax exemptions under Section 80C for premiums that are paid and the maturity benefits as well as the death benefit is tax free according to Section 10(10D) from the Income Tax Act, subject to certain conditions.
| Tax Benefits | Description |
|---|---|
| Section 80C | Tax deduction for premiums that are paid for the insurance. |
| Section 10(10D) | Tax-free death and maturity benefits, subjected to certain conditions. |
4. Loan Facility
The policyholder is able to avail a loan on the policy within two years after the first year of premium payment. This can be beneficial in situations of crisis when a quick cash flow is needed.
| Loan Against Policy | Details |
|---|---|
| Loan Eligibility | The plan is available after the two-year premium. |
| Loan Amount | up to 90 percent of the surrender value (for the policies that are in force). |
How Does the LIC Kanyadan Policy Work?
Example Scenario:
Let’s say the following scenario: you (age 35) choose the Kanyadan policy from LIC on behalf of your girl with a guarantee of Rs 5 lakh and a duration for 15 years. You will pay for premiums each year for twelve years (policy term less the 3 year policy term).
If you are able to live through the duration of the policy Your daughter will be paid 5 lakh plus any bonus at the date of maturity. If you die during the first ten years under the insurance, subsequent premiums will be canceled while your daughter would get the amount assured when the policy is due to expire.
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Things to Keep in Mind Before Purchasing the LIC Kanyadan Policy
Although the LCI Kanyadan Policy offers many advantages, it’s crucial to take into account a few things:
| Consideration | Details |
|---|---|
| Premium Cost vs Return | The returns aren’t as good than other investment plans. It’s crucial to consider your financial needs. |
| Long-Term Commitment | The policy is a long-term commitment. You have to ensure that you will continue to pay premiums throughout the term. |
| Alternatives | Check out other savings plans like Sukanya Samriddhi Yojana. Both are geared towards the future of a daughter but their returns and features differ. |
| Flexibility | The policy isn’t able to provide much flexibility should you want to alter the amount assured or policy conditions during the duration of. |
Is the LIC Kanyadan Policy Right for You?
It is the Insurance Company of Canada Kanyadan Policy is a excellent option if you’re trying to protect your daughter’s future by providing an insurance policy that provides life insurance as well as a saving plan. This is a good option for parents who wish to put money into the future of their child’s education or marriage as well as provide protection from financial loss in the event of a tragic event.
Before you commit for this particular policy, make sure that you have the funds to pay for long-term premium payment. Examine other options, such as those offered by the Sukanya Samriddhi Yojana as well as different LIC policies to determine which one suits your requirements better.
Conclusion
The LIC Kanyadan Policy is a well-thought out plan for parents who want to secure and plan for their child’s future. Through combining life insurance and savings, it gives you security and peace of mind knowing you can be sure that your daughter will be sheltered regardless of your absence. With tax advantages as well as maturity benefits and the option of a loan to ensure your investment is scalable and beneficial.