LIC Kanyadan Policy 2025: Eligibility, Benefits, Features, Complete Information | How to apply LIC Kanyadan policy | LIC Kanyadan Policy 2025: Update| LIC Kanyadan insurance plan
The Life Insurance Corporation of India (LIC) has long been a trusted name in the Indian insurance and investment sector, offering a range of plans tailored to meet diverse financial needs. Among its offerings, the LIC Kanyadan Policy stands out as a specialized plan designed to secure the financial future of daughters, particularly for their education and marriage expenses. With rising inflation and increasing costs of education and weddings, this policy has gained significant popularity among Indian parents. As of 2025, the LIC Kanyadan Policy continues to evolve, incorporating updates to align with modern financial needs and economic conditions. This article provides an in-depth analysis of the LIC Kanyadan Policy in 2025, covering its features, benefits, eligibility criteria, application process, and recent updates, ensuring parents have all the information needed to make an informed decision.
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What is the LIC Kanyadan Policy?
The LIC Kanyadan Policy is a customized version of the LIC Jeevan Lakshya Plan, marketed by LIC agents specifically to address the financial concerns of parents with daughters. It is a participating, non-linked, life assurance plan that combines savings and protection, aimed at building a substantial fund for a daughter’s future needs, such as higher education or marriage. The policy is structured to provide a lump-sum amount at maturity while offering life insurance coverage to the policyholder, typically the father, ensuring financial security for the family even in unforeseen circumstances.
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| LIC Kanyadan Policy |
The primary objective of the LIC Kanyadan Policy is to alleviate the financial burden associated with raising a daughter in India, where cultural practices often place significant emphasis on funding education and weddings. By requiring modest premium payments, the policy enables parents to save systematically over a long term, ensuring a sizable corpus when their daughter reaches key milestones.
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LIC Kanyadan Policy Highlights
| Highlight | Description |
|---|---|
| Policy Type | Participating, non-linked life assurance plan (customized LIC Jeevan Lakshya). |
| Purpose | Build corpus for daughter’s education/marriage with life insurance coverage. |
| Policy Tenure | Flexible term of 13 to 25 years, premium payment term 3 years less. |
| Premium | Affordable, e.g., ₹121/day for ₹27 lakh or ₹75/day for ₹14.5 lakh maturity. |
| Maturity Benefits | Lump-sum including sum assured, reversionary bonuses, and final additional bonus. |
| Death Benefits | Sum Assured on Death, annual income (10% of sum assured), and premium waiver. |
| Tax Benefits | Premiums deductible under Section 80C up to ₹1.5 lakh; maturity tax-exempt. |
| Loan Facility | Up to 90% of surrender value for in-force policies after 2 years. |
| Eligibility | Father aged 18+ (or 30+ in some cases), daughter aged 1+; min. sum assured ₹1 lakh. |
| 2025 Update | Enhanced maturity amounts, online application, and CSC center premium payments. |
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Key Features of the LIC Kanyadan Policy in 2025
The LIC Kanyadan Policy in 2025 retains its core structure while incorporating updates to enhance flexibility and benefits. Below are the key features of the policy:
- Flexible Policy Tenure: The policy offers a tenure ranging from 13 to 25 years, allowing parents to choose a term that aligns with their daughter’s age and their financial planning goals. The premium payment term is typically three years shorter than the policy term, reducing the financial commitment period.
- Affordable Premiums: One of the standout features is the low premium requirement. For instance, a daily investment of ₹121 (approximately ₹3,600 monthly) can yield a maturity amount of up to ₹27 lakh over 25 years. Alternatively, a lower daily premium of ₹75 can result in a corpus of ₹14.5 lakh, making the policy accessible to families across income levels.
- Maturity Benefits: At the end of the policy term, the policyholder receives a lump-sum amount, which includes the sum assured plus any vested simple reversionary bonuses and final additional bonuses, if applicable. This corpus can be used for the daughter’s education, marriage, or other significant expenses.
- Life Insurance Coverage: The policy provides life risk coverage for the policyholder (usually the father) for the entire term, up to three years before maturity. In the event of the policyholder’s untimely death, the premiums are waived, and the family continues to receive benefits, ensuring the daughter’s financial security.
- Tax Benefits: Premiums paid under the LIC Kanyadan Policy qualify for tax deductions under Section 80C of the Income Tax Act, 1961, up to a limit of ₹1.5 lakh per financial year. Additionally, the maturity amount is tax-exempt under certain conditions, enhancing the policy’s appeal.
- Loan Facility: The policy offers a loan facility after at least two full years of premium payments, providing liquidity for urgent financial needs. The maximum loan amount is up to 90% of the surrender value for in-force policies and 80% for paid-up policies.
- Death Benefits: In case of the policyholder’s death during the policy term, the nominee (typically the daughter or family) receives a “Sum Assured on Death,” defined as the higher of 7 times the annualized premium or 110% of the basic sum assured, along with annual income benefits (10% of the basic sum assured) until one year before maturity. In case of accidental death, an immediate payment of ₹10 lakh is provided, and for natural death, ₹5 lakh is paid.
- Flexible Premium Payment Modes: Policyholders can choose to pay premiums monthly, quarterly, half-yearly, or annually, offering convenience based on their cash flow.
Updates to the LIC Kanyadan Policy in 2025
As of 2025, the LIC Kanyadan Policy has introduced several updates to make it more appealing and aligned with contemporary financial needs:
- Enhanced Maturity Amounts: Recent updates indicate that the policy now offers competitive maturity amounts, with examples citing up to ₹27 lakh for a daily premium of ₹121 over 25 years or ₹14.5 lakh for a daily premium of ₹75. These figures reflect adjustments to account for inflation and rising costs.
- Streamlined Application Process: LIC has simplified the application process, allowing parents to apply online through the official LIC website (www.licindia.in) (www.licindia.in) or via trusted intermediaries like PolicyX.com. The online process involves filling out a form with details such as income, city, education, and occupation, followed by selecting the policy term and premium amount.
- Integration with CSC Centers: A significant update is the ability to pay premiums at Common Service Centers (CSCs) across India, making it easier for policyholders in rural areas to maintain their policies.
- Improved Claim Settlement Ratio: LIC reported a claim settlement ratio of 98.31% in 2022-23, as per the IRDAI report, ensuring high reliability for policyholders. This statistic underscores LIC’s commitment to honoring claims, boosting confidence in the Kanyadan Policy.
- Clarification on Policy Structure: LIC has emphasized that the Kanyadan Policy is a customized version of the Jeevan Lakshya Plan, addressing misconceptions about its identity. This clarification helps parents understand the policy’s foundation and benefits more clearly.
LIC Kanyadan Policy 2024: Objective
The primary objective of the LIC Kanyadan Policy in 2025 is to provide parents with a reliable financial tool to secure their daughter’s future by creating a substantial corpus for significant milestones such as higher education and marriage. This policy aims to alleviate the financial burden associated with these expenses, which are culturally significant in India, by allowing parents to save systematically through affordable premiums over a flexible term of 13 to 25 years.
Additionally, it seeks to offer comprehensive life insurance coverage to the policyholder, typically the father, ensuring that the family remains financially protected in the event of the policyholder’s untimely death, with benefits like premium waivers and annual income support for the nominee. The policy also strives to provide tax benefits under Section 80C of the Income Tax Act, enhancing its cost-effectiveness, while offering a loan facility to meet urgent financial needs, thereby combining savings, protection, and liquidity to support parents in planning for their daughter’s long-term financial security.
Eligibility Criteria
To enroll in the LIC Kanyadan Policy in 2025, the following eligibility criteria must be met:
- Age of the Policyholder: The father (or parent) must be at least 18 years old, with some sources citing a minimum age of 30 years for specific plans.
- Age of the Daughter: The daughter must be at least 1 year old at the time of policy purchase. For certain plans, the daughter’s age should be between 1 and 10 years.
- Policy Term: The policy term ranges from 13 to 25 years, with the premium payment term being three years less than the policy term.
- Minimum Sum Assured: The minimum sum assured is ₹1 lakh, with no upper limit, allowing flexibility based on financial goals.
Benefits of the LIC Kanyadan Policy
The LIC Kanyadan Policy offers a range of benefits that make it an attractive investment option:
- Financial Security for Daughters: The policy ensures a substantial corpus for the daughter’s education or marriage, reducing financial stress for parents.
- Life Cover for the Policyholder: The life insurance component provides peace of mind, ensuring that the family is protected even if the policyholder passes away.
- Tax Savings: The tax benefits under Section 80C make the policy cost-effective, allowing parents to save on taxes while investing for their daughter’s future.
- Loan Facility: The availability of loans against the policy provides liquidity for unexpected expenses, making it a versatile financial tool.
- Waiver of Premiums: In case of the policyholder’s death, the premium payments are waived, and the policy continues to provide benefits, ensuring the daughter’s financial goals are met.
How to Apply for the LIC Kanyadan Policy in 2025
Applying for the LIC Kanyadan Policy is straightforward, with options for both online and offline applications:
Online Application:
- Visit the official LIC website www.licindia.in or a trusted intermediary like PolicyX.com.
- Navigate to the “Investment” or “Retirement Planning” section and select the “Jeevan Kanyadan Plan.”
- Fill out the application form with details such as name, contact information, income, city, education, and occupation.
- Choose the policy term, premium payment mode, and sum assured.
- Proceed to pay the first premium online. An LIC representative may contact you to finalize the process.
Offline Application:
- Visit the nearest LIC branch or a CSC center.
- Request the LIC Kanyadan Policy application form.
- Submit required documents, including Aadhaar card, income certificate, residential proof, passport-size photos, and the daughter’s birth certificate.
- Pay the first premium via cash or cheque.
Difference between LIC Kanyadan Policy and Sukanya Samriddhi Yojana
| Criteria | Sukanya Samriddhi Yojana | LIC Kanyadan Policy |
|---|---|---|
| Citizenship | Only Indian citizens can apply. | Applicant must generally be a resident of India, with provisions for NRIs under specific terms. |
| Age | The scheme can be purchased before the girl child completes 10 years of age. | The girl child must be at least 1 year old, and the father’s age must be between 18 and 50 years (maximum entry age depends on policy term). |
| Account Holder | Girl child (account opened in her name by parents until she is 18). | The account holder is the father of the girl child. |
| Sum Assured Limit | Maturity amount depends on contributions, up to ₹1.5 lakh annually. | Minimum ₹1 lakh, no upper limit. |
| Investment Limit | Maximum ₹1.5 lakh per year. | No upper limit. |
| Account Maturity Period | The account can be continued until the girl turns 21 or after her marriage post 18 years. | 13 to 25 years. |
| Loan Facility | Not available. | Loan available after 2 years of premium payments. |
| Payment Terms | A maximum of ₹1.5 lakh can be invested annually. | Premium payment term is 3 years less than the policy term. |
| Scheme Type | A savings scheme launched for the education and marriage of girl children. | Combines features of the LIC Jeevan Lakshya plan. |
| In Case of Death | In case of the account holder’s death, the amount is paid to the guardian with regular interest. | Premiums waived, and nominee receives Sum Assured on Death plus annual income benefits. |
| Compensation | No compensation is provided. | Sum Assured on Death plus bonuses; additional benefits for accidental death if rider is opted. |
Exclusions and Considerations
While the LIC Kanyadan Policy offers numerous benefits, it has certain exclusions:
- Suicide Clause: If the policyholder commits suicide within 12 months of policy initiation, only 80% of the premiums paid (excluding surrender value or taxes) are returned.
- Surrender Value: The policy can be surrendered after two years of premium payments, with the surrender value being the higher of the Guaranteed Surrender Value or Special Surrender Value.
Conclusion
The LIC Kanyadan Policy in 2025 remains a robust and thoughtful investment option for parents looking to secure their daughter’s future. With its low premium requirements, flexible tenure, tax benefits, and life insurance coverage, it addresses the dual needs of savings and protection. The updates in 2025, such as enhanced maturity amounts, streamlined application processes, and integration with CSC centers, make it more accessible and appealing. By investing as little as ₹75 or ₹121 daily, parents can build a significant corpus of ₹14.5 lakh to ₹27 lakh, ensuring their daughter’s education and marriage expenses are covered without financial strain. For those seeking a reliable, long-term plan to safeguard their daughter’s dreams, the LIC Kanyadan Policy is a smart and secure choice. For further details or to apply, visit www.licindia.in or consult an LIC agent.
FAQs on LIC Kanyadan Policy 2025
Q. What is the LIC Kanyadan Policy?
The LIC Kanyadan Policy is a customized version of the LIC Jeevan Lakshya Plan, designed to help parents save for their daughter’s education or marriage while providing life insurance coverage for the policyholder (typically the father).
Q. Who is eligible to buy the LIC Kanyadan Policy?
The policyholder (usually the father) must be aged 18 to 50 years (depending on the policy term), and the daughter must be at least 1 year old. The minimum sum assured is ₹1 lakh, with no upper limit.
Q. What is the policy term and premium payment term?
The policy term ranges from 13 to 25 years, with the premium payment term being 3 years less than the policy term (e.g., 22 years for a 25-year policy).
Q. How much can I invest in the LIC Kanyadan Policy?
There is no upper limit on premiums. For example, a daily premium of ₹121 can yield ₹27 lakh, or ₹75 daily can yield ₹14.5 lakh over 25 years, depending on the sum assured and bonuses.
Q. What are the maturity benefits?
At maturity, the policyholder receives a lump-sum amount, including the sum assured, simple reversionary bonuses, and a final additional bonus (if applicable), which can be used for the daughter’s education or marriage.
Q. What happens if the policyholder dies during the policy term?
In case of the policyholder’s death, premiums are waived, and the nominee (typically the daughter) receives the “Sum Assured on Death” (higher of 7x annualized premium or 110% of basic sum assured) plus annual income benefits (10% of sum assured) until one year before maturity.
Q. Are there any tax benefits?
Yes, premiums paid qualify for tax deductions under Section 80C of the Income Tax Act, 1961, up to ₹1.5 lakh per year. The maturity amount is tax-exempt under certain conditions.
Q. Can I take a loan against the LIC Kanyadan Policy?
Yes, a loan is available after 2 years of premium payments, up to 90% of the surrender value for in-force policies or 80% for paid-up policies.
Q. How does the LIC Kanyadan Policy differ from Sukanya Samriddhi Yojana?
The LIC Kanyadan Policy is an insurance-cum-investment plan with life cover and flexible premiums, while Sukanya Samriddhi Yojana is a government-backed savings scheme with fixed interest, a maximum annual investment of ₹1.5 lakh, and no life cover. SSY is in the daughter’s name, while Kanyadan is in the father’s name.
Q. How can I apply for the LIC Kanyadan Policy in 2025?
You can apply online via www.licindia.in or trusted intermediaries like PolicyX.com by filling out a form and paying the first premium. Alternatively, visit an LIC branch or CSC center with documents like Aadhaar, income proof, and the daughter’s birth certificate.
Q. What are the 2025 updates to the LIC Kanyadan Policy?
Updates include enhanced maturity amounts (e.g., ₹27 lakh for ₹121/day over 25 years), a streamlined online application process, and the option to pay premiums at CSC centers for greater accessibility.
Q. Is there a fixed compensation for accidental or natural death?
No fixed amounts like ₹5 lakh or ₹10 lakh are guaranteed. The death benefit includes the “Sum Assured on Death” plus bonuses. Additional benefits for accidental death require an optional rider.
Q. Can non-residents apply for the LIC Kanyadan Policy?
Generally, the policyholder must be a resident of India, but NRIs may apply under specific terms and conditions, subject to LIC’s approval.
Q. What happens if I stop paying premiums?
If premiums are stopped after 2 years, the policy becomes paid-up, and you receive a reduced sum assured on maturity. If surrendered after 2 years, you get the surrender value (higher of Guaranteed or Special Surrender Value).
Q. Is the LIC Kanyadan Policy suitable for all income groups?
Yes, with flexible premiums starting as low as ₹75/day, the policy is accessible to various income groups, allowing parents to choose a sum assured and premium that suits their financial capacity.