LIC Kanyadan Policy(licindia.in):Features and Benefits

LIC Kanyadan Policy is a customized version of LIC Jeevan Lakshay policy sold by LIC agents. It is a complete and comprehensive plan that is specially designed to offer financial help to the girl child at an affordable premium rate.

In our country, whenever a girl child is born, the first thing that comes to our mind is the expenses of education and her marriage. But to function at your ease, LIC of India has presented this customized plan, LIC Kanyadan Policy, a participating, individual, non-linked, life assurance plan which offers a combination of protection and savings. With this policy, you can not only take care of your daughter’s growing expenses, even in your absence but also the policy takes care of liquidity needs through its loan facility.

Eligibility Criteria of LIC Kanyadan Policy

Pameters

Key highlights

Entry age of the policyholder

Minimum – 18 years

Maximum – 50 years

Entry age of the daughter

Minimum 1 year

Sum assured

Minimum – Rs. 1 lakh

Maximum – No upper limit

(The Basic Sum Assured shall be in multiples of 10,000)

Maximum maturity age

65 years

Policy term

13 years to 25 years

Premium paying term

Policy term minus 3 years

Premium payment options

Monthly, quarterly, half-yearly, and yearly

Who can buy the policy

Only the father/mother, not the daughter herself.

Riders benefits Available

What Are The Key Benefits of LIC Kanyadan Policy?

Apart from securing your daughter’s future, this policy offers many other benefits to achieve different milestones and to fulfill the varied needs of your daughter in many ways. To know more about the policy, especially the key LIC Kanyadan Policy benefits, have a look at the below mentioned.

• In case of the unfortunate and untimely demise of the insured parent, the premiums are waived off to lessen the financial burden.

• In the event of death of the Life Assured during the active policy term, “Sum Assured on Death” as the death benefit is paid by the policy whereas the “Sum Assured on Death” is defined as 7 times of annualized premium or Sum of 110% of Basic Sum Assured, which shall be payable on date of maturity and Annual Income Benefit equal to 10% of the Basic Sum Assured, whichever is higher.

• Death benefit includes The Vested Simple Reversionary Bonuses and Final Additional Bonus if any.

• The policy pays Rs. 10 lakhs immediately in case of the accidental demise of the insured parent.

• In the event of non-accidental or natural death, Rs. 5 lakh is paid immediately.

• Until the date of maturity Rs. 50,000 is paid every year.

• In case the Life Assured survives the entire policy term during an active policy, the “Sum Assured on Maturity” that is equal to Basic Sum Assured along with vested Simple Reversionary bonuses and Final Additional Bonus, if any, will be paid as the maturity benefit.

• Under this plan, different Riders options are available to enhance the strength of the policy and to provide more protection.

• The plan offers you the flexibility to receive the death benefit either as a lump sum amount or as in installments, monthly, quarterly, half-yearly, and annually to generate a regular flow of income for a certain period of time.

• This is a with-profit endowment insurance plan that comes with insurance benefits coupled with savings advantages.

• LIC has made a PDF of the policy in the Hindi language too so that it can become easily accessible to a wider range of people.

• The premium chart of the LIC Kanyadan Policy is made in such a way that it can be understood effortlessly.

• Under this policy, the Loan facility is available provided at least two full years’ premiums have been paid and that is subject to the terms and conditions of the Corporation. The maximum loan as a percentage of surrender value shall be as • For in-force policies – 90% • For paid-up policies – 80%.

• Tax exemption benefit may be availed of with this policy as per the Income Tax Law of India, 1961.

What Are The Exclusions of The LIC Kanyadan Policy?

While LIC Kanyadan Policy has come up with a sack full of benefits, it has certain exclusions also. Let us know about the exclusions of the policy below.

• In case of the insured parent commits suicide at any time within 12 months from the date of commencement of risk, the Corporation will not entertain any claim under the policy except for 80% of the total premiums paid provided the policy is in force.

• On the other hand, if the insured parent commits suicide within 12 months from the date of revival, an amount of 80% of the total premiums paid till the date of death or the surrender value available as on the date of death, whichever is higher will be payable. The insurer will not take care of any other claim under the policy.

How Does LIC Kanyadan Policy Work?

Sample Illustrative Premium – The life insurance company of India launched the LIC Kanyadan Policy Scheme to raise money for daughters’ weddings and schooling. Anyone can contribute to this plan for his daughter’s wedding. This strategy has a 25-year duration. By saving ₹ 121 every day, participants in this scheme would be required to pay a premium of ₹ 3600 per month, but only for 22 years.  After the tenure of 25 years, he would receive 27 lakhs. GE/TERM (in years)

Additional Information About LIC Kanyadan Policy

To know more about the policy, keep an eye on the following.

Surrender Value– If you are unable to continue the LIC Kanyadan policy, you can surrender it at any time only if you have paid at least premiums of consecutive two years. On surrendering the policy, the LIC will pay the Surrender Value that is equal to Guaranteed Surrender Value or Special Surrender Value, whichever is higher.

Guaranteed Surrender Value – The Guaranteed Surrender value is dependent on the policy term and the policy year in which the policy is surrendered. It will be equal to the total premiums paid (excluding extra premiums, taxes, and premiums for rider(s) if opted for multiplied by the Guaranteed Surrender Value factors applicable to total premiums paid.

For your better understanding, here are the tables that will express the surrender value along with the guaranteed surrender value of LIC Kanyadan Policy based upon the various factors: (Add image charts)

Special Surrender Value – It is determined by the insurer itself from time to time and it is subject to the prior approval of IRDAI.

Free Look Period – If you are not satisfied with the LIC Kanyadan Policy, you can return the plan within 15 days from the date of receipt of the policy bond and you need to state the reasons for objections. On the receipt of the same, the insurer will cancel your policy and return the premium amount after deducting a certain amount.

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Grace Period – For the payment of yearly or half-yearly or quarterly premiums, the grace period is 30 days whereas it is 15 days for monthly premiums from the date of the first unpaid premium. Within this grace period, you need to pay the premium of your policy otherwise the policy will be terminated without any further word.

Rebate – How the rebate for the LIC Kanyadan Policy is calculated, is given below.

Mode Rebate:

Yearly mode – 2% of Tabular Premium

Half-yearly mode – 1% of Tabular premium

Quarterly & Salary deduction – NIL

High Sum Assured Rebate (on Premium):

Basic Sum Assured (Rupees)

Rebate (Rupees)

1,00,000 to 1,90,000 - Nil

2,00,000 to 4,90,000 - 2% of Basic Sum Assured

5,00,000 to and above - 3% of Basic Sum Assured

How To Revive Your LIC Kanyadan Policy?

If you remain unable to pay the premiums within the Grace Period, the policy will be terminated without any further word. But this lapsed policy can also be revived within a period of 5 consecutive years from the date of the first unpaid premium and before the date of maturity. The revival will only be effective when the due arrears of the premiums along with the half-yearly compounding interests are paid. This interest rate is determined by the Corporation from time to time and on the satisfaction of continued insurability of the life assured on the basis of given information, details, documents, reports, and in this case, additional information might be required along with the underwriting policy of the insurer at the time of revival.

The revival will be effective only after the Corporation approves, accepts, and issues a receipt of revival. All the rights and terms and conditions regarding this revival of a terminated policy are controlled by the Corporation. If you have opted for the Rider(s) benefits, the revival of the rider(s) will be considered along with the revival of the Base Policy, not separately.