Will LIC Kanyadan Policy Be Apt For Accumulating Wealth For Your Daughter's Wedding?

LIC- the IPO bound, largest public and most trusted insurance company has plan to meet each of the financial goal. Lately, to meet the marriage goals of your daughter and to have an adequate sum ready by that time, LIC has come up with LIC Kanyadan plan.

Will LIC Kanyadan Policy Be Apt For Accumulating Wealth For Your Daughter's Wedding?

Here's in detail about the plan

Notably, there is no such plan by LIC in the name of LIC Kanyadan, rather in a bid to attract more and more customers and target parents of a girl child towards the investment, LIC Jeevan Lakshaya has been marketed with the 'LIC Kanyadan' tagline.

Notable features of the plan:

1. Eligibility: The subscriber or the policyholders needs to be between 18-50 years of age.
For the girl child, the minimum age criteria is set at 1 years.

2. Minimum sum assured : Rs. 1 lakh
3. Premium waiver available in case of untimely and sudden death of the insured parent
• Rs lakh payable in case of accidental demise, Rs. 5 lakh in case of non-accidental demise
• Benefit of Rs. 50000 payable every year till the maturity
• LIC cover of up to 3 years before the maturity.
• NRIs can also avail of the policy.

Different benefits of the policy under the plan

-Limited premium paying term which is 3 years less than the policy maturity term
-In case of death of the policyholder, 1% of the sum assured shall be paid annually until one year before the maturity date.

Maturity tenure can be 13years to 25 years

Premium calculation:

Say if wish to opt for a Rs. 10 lakh sum assured under the plan, for a term of 13 years, the premium paying term will be for 10 years and it would offer
DAB - Rs. 10 lakh
Death sum assured - Rs. 11 lakh
Basic SA- Rs. 10 lakh

1st year premium based on All in one Calc app will be Rs. 102937 annually
Half yearly- Rs. 52003
Qtrly- Rs. 26269
Mthly- Rs. 8756
Yearly average per day premium - Rs. 282.

Note this insurance premium is inclusive of 4.5% tax.

Additionally the disability rider is applicable in case of tenure of atleast 5 years for the policy.

Illustration for the maturity benefit

Supposing you take the policy term to be 15 years then for a SA of Rs. 5 lakhs with a premium payment term of 12 years, the maturity amount in case the sum insured survives will be Rs. 8.17 lakhs.

Comparison with Sukanya Samriddhi Scheme

While the Sukanya Samriddhi scheme targeted to meet the financial obligations towards a girl child offers a good interest rate and the compounding will enable you to aggregate wealth down the line, it lacks in the sense that there is no security extended in case the parent meets an untimely death. Nonetheless the same is available with LIC Kanyadan as immediate relief is granted on financial terms considering the SA amount until one year before the maturity term and also premiums are waived in case of death of the insured parent.

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