LIC Kanyadan Policy (Benefits, Premium, Eligibility & more)

LIC Kanyadan policy is specially designed with keeping your daughter in mind. The policy provides a lump sum amount during your daughter’s wedding along with additional insurance coverage if something happens to the daughter’s guardian (policyholder).
Let us discuss this policy in detail and answer any queries that you may have. This article will cover the following points:

• Eligibility
• How does LIC Kanyadan Policy work?
• Benefits
• Documents required
  
  

Eligibility for LIC Kanyadan Policy

• This policy can only be bought by the daughter’s guardian
• The daughter needs to be at least 1 year old at the time of policy purchase
• The age of the guardian needs to be between 18-50
• Policy tenure is between 13-25 years
• Minimum sum assured is 1 lac and maximum sum assured is unlimited (based on premium paid)

How does LIC Kanyadan Policy work?

This policy can be availed by the guardian of a daughter. The guardian will have to pay a premium to LIC, and in exchange for the premium, LIC will provide a lump sum amount at maturity. You can use this amount during your daughter’s wedding. Further, if the daughter’s guardian passes away during the policy term, LIC will provide an additional amount to the daughter along with the maturity amount at policy maturity. You can understand this policy much better with an example.

LIC Kanyadan Policy Examples

Example 1

Let us say that Mr. Rishi has taken a Kanyadan Policy for his 5-year-old daughter. He selected a policy term of 15 years. Mr. Rishi will now be eligible to receive the maturity amount when his daughter is 20 years old. He can use this amount towards his daughter’s marriage or even other affairs like further education, etc.

Example 2

Let us say that Mr.Rajesh has taken a Kanyadan Policy for his 2-year-old daughter. He selected a policy term of 25 years. Let us assume that Mr. Rajesh met with an unfortunate accident and passed away when his daughter was 10 years old. His daughter would immediately get a Rs 10 Lakh death benefit. Along with this the daughter would also Rs.50000 every year till the policy matures, plus the daughter will also be eligible for the entire maturity amount on policy maturity. Further, all future premiums will be waived off.

Benefits of LIC Kanyadan Policy

• Provides a lump sum amount on maturity that you can use towards your daughter’s marriage.
• Last 3 years premium will be waived off. (For example, if you have taken a 15-year policy, you will only need to pay a premium for 12 years)
• If the guardian passes away, all future policy premiums will be waived off.
• If the guardian passes away, the daughter will be eligible to immediately get Rs.5 Lakhs in case of normal death and Rs.10 Lakhs in case of accidental death. Further, the daughter will also get an additional Rs.50000/year till policy maturity.
• Further, the daughter will get the entire maturity benefit as well along with the death benefits.
• NRI’s can avail of this policy
• Policyholder can also avail of a disability rider
• The policyholder can also avail a loan against the policy (after paying premium continuously for 3 years or more)
• Taxes are exempt under this policy
• Policyholder is provided with a 15 day free look period

Documents Required

Following documents are required while enrolling in this policy:

• Daughter’s birth certificate
• Identification and address proof
• Income Certificate
• Passport size photos

Further documents can be requested by the LIC officer.