LIC Kanyadan Policy 2025 Update

The term “LIC Kanyadan Policy” refers to a specific policy offered by the Life Insurance Corporation of India (LIC), designed to help parents save for their daughters’ wedding expenses. This policy is primarily aimed at providing financial support for the important milestone of a daughter’s marriage, offering a combination of insurance coverage and savings.

Here’s a general overview of the LIC Kanyadan Policy (Policy 2), based on typical features:

Key Features:

1. Targeted for Marriage Expenses: The policy is designed to build a fund over the years for the purpose of a daughter’s marriage. It helps parents accumulate a corpus for this important event.

2. Eligibility:

   • Age of the Child: The policy can be purchased for a girl child aged between 1 and 12 years.
   • Policyholder Age: The policyholder (typically the parent) should be between 18 to 50 years of age at the time of policy purchase.
   • The policy is typically available for a period of 25 years or more, depending on the time left for the child’s marriage.

3. Premium Payment:

   • The policyholder can choose the premium amount and the frequency (monthly, quarterly, half-yearly, or yearly).
   • There may be different payment options, such as limited payment or full premium paying term, depending on the specific plan.

4. Maturity Benefits:

   • The maturity benefit is usually a lump sum amount that the policyholder will receive when the daughter reaches a specific age, typically 18 years.
   • The sum received at maturity can be used for wedding expenses, education, or other needs.

5. Bonus Facility:

   • LIC Kanyadan policies may offer bonuses, which are a share of the corporation’s surplus. This can increase the final payout, making the policy more beneficial over time.

6. Risk Coverage:

   • In case of the untimely death of the policyholder, the policy typically provides a death benefit. Additionally, if the policyholder dies, the sum assured and bonuses (if any) may still be paid out to the nominee or the child at the time of maturity.

7. Loan Facility: Some plans may offer the option of taking loans against the policy, providing liquidity in times of need.

8. Tax Benefits:

   • Premiums paid for the policy are eligible for tax deductions under Section 80C of the Income Tax Act.
   • The sum assured, including bonuses, is tax-free under Section 10(10D) on maturity, subject to certain conditions.

Advantages of the LIC Kanyadan Policy:

• Financial Security for Daughters: It helps parents accumulate a fund for their daughter’s wedding, offering peace of mind for future expenses.
• Dual Benefits: It combines insurance coverage with savings, ensuring financial protection for the policyholder’s family.
• Tax Savings: The premiums paid are eligible for tax deductions, making it an attractive option for tax planning.

Conclusion:

The LIC Kanyadan Policy serves as an excellent way for parents to plan for their daughter’s marriage, offering financial support and protection in the long term. It provides both savings and insurance coverage, making it a secure investment for such a life event.