LIC Kanyadan Policy

Key Features of LIC Kanyadan Policy

1. Provides life insurance cover and savings benefits for up to 25 years.
2. Offers lump-sum payout at policy maturity.
3. Premium waiver in case of the policyholder’s death.
4. Death benefit includes the sum assured, vested bonuses, and final additional bonuses.
5. Guaranteed annual income of Rs. 50,000 until maturity after the death of the insured.
6. Accident benefit: Rs. 10 lakh (accidental death); Rs. 5 lakh (natural death).
7. Loan facility available after paying 2 full years of premiums.
8. Flexible premium payments – monthly, quarterly, half-yearly, or yearly.
9. Tax benefits under Sections 80C and 10(10D) of the Income Tax Act, 1961.
10. The policy participates in LIC’s profit-sharing, earning Simple Reversionary Bonuses.

 Benefits of LIC Kanyadan Policy

1. Financial Security: Ensures your daughter’s education and marriage expenses are covered even after your demise.
2. Maturity Benefits: Receives the sum assured and bonuses if the insured survives the policy term.
3. Death Benefits: Provides immediate lump-sum payout and yearly income for the nominee.
4. Rider Options: Choose from four optional covers – Accidental Death and Disability, Accident Benefit, New Term Assurance, and New Critical Illness Riders.
5. Loan Facility: Borrow against your policy after 2 years of full premium payments.
6. Rebate on Premiums:
   1. Yearly payment - 2% discount
   2. Half-yearly - 1% discount
7. High Sum Assured Rebate:
   1. Rs. 2 to 4.9 lakh - 2% rebate
   2. Rs. 5 lakh & above - 3% rebate

Policy Exclusions

1. Suicide Clause: If the insured commits suicide within 12 months of policy commencement, 80% of premiums paid are refunded (excluding taxes and extra premiums).
2. Grace Period:
   1. 30 days for annual, half-yearly, or quarterly premiums
   2. 15 days for monthly payments

Surrender and Loan Provisions

1. Surrender Value: Eligible after paying 2 full years of premiums.
2. Guaranteed Surrender Value: Percentage of premiums paid (excluding taxes and rider premiums) based on policy year.
3. Loan Facility:
   1. Up to 90% of surrender value for active policies
   2. Up to 80% for paid-up policies

Example of LIC Kanyadan Policy Illustration

Suppose Mr. Sharma, aged 36, buys LIC Kanyadan Policy for 15 years with a sum assured of Rs. 25 lakh.

1. Yearly Premium (Approx): Rs. 1,99,770 + GST
2. Maturity Benefit: Rs. 25 lakh + Bonuses
3. Total Benefit to Nominee (Tax-free): Rs. 87.5 lakh (including death and annual income benefits)

Additional Information

1. Free Look Period: 15 days from policy bond receipt to cancel the plan.
2. Policy Revival: Can be revived within 5 years from lapse by paying arrears and interest.
3. Rider Selection Limit: Up to 3 riders allowed to enhance coverage.
4. CSC Payments: Premiums can now be paid at any CSC centre across India.