Inflation is rising, causing many parents to worry about their children’s future.
To address these concerns, parents often save and invest in various ways, focusing on their children’s education and marriage.
Currently, there are several policy plans available for this purpose.
One notable option is the LIC Kanyadaan Policy offered by Life Insurance Corporation (LIC), which is designed specifically for daughters.
About LIC’s Kanyadaan Policy
LIC’s Kanyadaan Policy is a term insurance plan with a tenure of 13 to 25 years.
You can choose to pay premiums monthly, quarterly, half-yearly, or yearly.
Upon maturity, the policy provides a payout that includes the Sum Assured, Bonus, and Final Bonus.
This plan is available for daughters aged between 1 and 10 years, and the father’s age must be under 50 to invest.
Key Benefits
Loan Facility: Available starting in the third year of the policy.
Surrender Option: Available after two years.
Grace Period: Premium payments can be made up to 30 days late without penalties.
Tax Benefits: Premium payments qualify for a deduction under Section 80C, and the maturity amount is tax-free under Section 10D.
Investment and Returns
For a 25-year investment term, you need to invest Rs 41,367 annually, which amounts to about Rs 3,447 per month.
You only need to pay premiums for 22 years. After maturity, you can expect a benefit of around Rs 22.5 lakh.
Death Benefit
If the father dies during the policy period, the premiums are waived, and the daughter will receive Rs 1 lakh annually for 25 years,
plus a lump sum at maturity.
If the death is due to a road accident, an additional accidental death benefit of Rs 10 lakh is provided.
The nominee receives this benefit.
