LIC Kanyadan Yojana: Pay just Rs 121 and get Rs 27 lakh for Daughter’s Education and Marriage

LIC Kanyadan Yojana: The Life Insurance Corporation (LIC) Kanyadan Yojana is a popular plan offered by the Life Insurance Corporation of India (LIC) that aims to help parents secure their daughter’s financial future, specifically for her education and marriage expenses. LIC Kanyadan Yojana: Pay just Rs 121 and get Rs 27 lakh for Daughter’s Education and Marriage.

While widely known as “LIC Kanyadan Yojana,” this is essentially a customized version of LIC’s Jeevan Lakshya policy marketed by agents as “Kanyadan Policy” due to its focus on a daughter’s future.

Here’s a breakdown of how it generally works and the benefits, including the claim of securing Rs 27 Lakh with Rs 121/day:

Key Features and Benefits:

1. Financial Security for Daughter: The primary goal is to create a substantial corpus for the daughter’s future needs, such as higher education and marriage.

2. Lump Sum Maturity Benefit: At the end of the policy term, the daughter (or nominee) receives a lump sum amount, which includes the Basic Sum Assured along with accrued bonuses (Simple Reversionary Bonuses and Final Additional Bonus, if any).

3. Death Benefit (Crucial Feature): This is where the policy offers significant protection. In case of the unfortunate demise of the policyholder (usually the father) during the policy term:

Premium Waiver: All future premiums are waived.

Annual Income Benefit: The daughter or family receives a regular annual income (typically 10% of the Basic Sum Assured) until the maturity date.

Lump Sum at Maturity: Despite the premium waiver and annual income, the full maturity amount (Basic Sum Assured + bonuses) is still paid at the end of the policy term.

Immediate Payout in case of death:

Rs 10 Lakh is paid immediately in case of accidental death.

Rs 5 Lakh is paid immediately in case of natural (non-accidental) death.

4. Limited Premium Payment Term: The premium payment term is usually 3 years less than the chosen policy term. For example, if you choose a 25-year policy term, you only pay premiums for 22 years.

5. Flexibility in Payouts: Death benefits or maturity benefits can be received either as a lump sum or in installments (monthly, quarterly, half-yearly, or annually) to ensure a steady income flow.

6. Loan Facility: A loan can be availed against the policy after at least two full years’ premiums have been paid, subject to LIC’s terms and conditions.

7. Tax Benefits: Premiums paid are eligible for tax deductions under Section 80C of the Income Tax Act, 1961 (up to Rs 1.5 lakh per financial year). The maturity amount received is tax-exempt under Section 10(10D) of the Income Tax Act.

Eligibility Criteria:

Policyholder’s Age (usually the father): Minimum 18 years, Maximum 50 years.

Daughter’s Age: Minimum 1 year. (Some sources mention up to 10 years for opening the account).

Policy Term: Typically ranges from 13 years to 25 years.

Premium Payment Term: Policy Term minus 3 years.

Minimum Sum Assured: Rs 1 Lakh. There is no upper limit.

Premium Payment Frequency: Monthly, Quarterly, Half-yearly, or Yearly.

The Rs 27 Lakh with Rs 121/Day Claim:

A longer policy term: Often a 25-year policy term (meaning 22 years of premium payments).

A specific Sum Assured: The Rs 121/day (approx. Rs 3,630/month or Rs 43,560/year) would correspond to a Basic Sum Assured that, along with the accumulated bonuses over 25 years, totals around Rs 27 Lakh at maturity. The exact sum assured required to achieve this would depend on the policyholder’s age, daughter’s age, and the chosen policy term, as well as the bonus rates declared by LIC.

How to Apply:

The LIC Kanyadan Policy (Jeevan Lakshya) is primarily purchased offline through LIC agents or branches. You will need to provide:

Girl child’s birth certificate.

Parent/Legal guardian’s identity proof (Aadhaar, PAN, Voter ID).

Parent/Legal guardian’s address proof (Aadhaar, Passport).

Parent/Legal guardian’s income proof (salary slip, bank statement, Form 16).

Passport-sized photographs.

Other documents as required by LIC.

Important Considerations:

Bonus Rates: The final maturity amount with bonuses is not guaranteed as bonuses depend on LIC’s profits. However, the Basic Sum Assured is guaranteed.

Illustrative Figures: Always get a personalized illustration from an LIC agent to understand the exact premium and maturity benefits based on your specific age, daughter’s age, and desired sum assured.

Not a standalone scheme: Remember it’s a variant of an existing LIC plan (Jeevan Lakshya). This policy can be a good option for parents looking to systematically save for their daughter’s major life events while also providing life insurance coverage for themselves.

Also Read: PMSBY Scheme: Get 2 lakhs Insurance in just Rs 20