LIC Kanyadan Vs Sukanya Samriddhi Yojana

LIC Kanyadan policy and Sukanya Samriddhi Yojana are two schemes launched with a similar motive. The main aim of these schemes is to provide financial support to the parents of a girl child in India.
This article will walk you through the major differences between the LIC Kanyadan policy and the Sukanya Samriddhi Yojana scheme so that you get to know which scheme suits you and your child better.

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Both LIC Kanyadan Policy and Sukanya Smriddhi Yojana focus on the girl child. Even though their main objective is similar, they have some differences in their working. Let us see the major differences between the two schemes for a better understanding.

LIC Kanyadan Vs Sukanya Samriddhi Yojana


LIC Kanyadan Policy

Sukanya Samriddhi Yojna

Age Criteria

Daughter - At least 1 Year
Father - 18 Years - 50 Years

Before 10 years of age

Nationality Criteria

For both NRIs and Indian Citizens

For an Indian Resident only

Account Holder

Father of girl child

Girl child until marriage

Sum Assured Limit

1 Lakh (Minimum)
No limit (Maximum)

Limited as per payment made

Payment Limit

There is no limit

Maximum of 1.5 Lakh rupees in every financial year

Account Maturity Tenure 

13 Years - 25 Years

The account can be managed by the girl child until the age of 21 or until she is married after 18 years

Loan Facility

A loan can be availed only after 3 years of consecutive premium payment

Does not have a loan facility

Payment Term

3 years under the policy term

Maximum 1.5 Lakh every financial year

Type of Scheme

LIC Kanyadan is a modified policy based on LIC Jeevan Lakshya Policy

Launched by Government under "Beti Bachao, Beti Padhao" Plan

In Case Of Death

The premium is waived in case of the death of the father

In case of demise of the girl child, the sum amount is paid to the parents at regular interest

Compensation Offered ( In case of the death of the account holder)

Natural demise: An immediate payment is made of 5 Lakh rupees

No compensation is offered

Accidental demise: An immediate payment is made of 10 Lakh rupees

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

LIC Kanyadan Policy

It must be noted that there is no policy named LIC Kanyadan offered by the Life Insurance Corporation of India(LIC). It is a completely customized version of the LIC Jeevan Lakshya policy which is being used by many insurance companies. The motive behind using the name LIC Kanyadan is to attract more families of a girl child to invest and secure their daughter’s future.

LIC Kanyadan Policy offers a combination of savings and protection. LIC’s Kanyadan policy offers financial coverage with minimum premium payments.

In India, every parent is concerned about the future of their girl child including her higher education and marriage. LIC Kanyadan policy is of great relief for the families who do not have a financial backup but want their child to become employed and later married.

Key Features of LIC Kanyadan Policy

LIC Kanyadan Policy focuses on the parents of a girl child and helps them raise their daughters without any financial burdens. It is the right of a child to have a secure and safe future financially and child plans only help get a step closer to fulfilling the dreams.

Here are some important features related to LIC Kanyadan policy to understand the plan better.

  • Financial security to the daughter
  • Maturity benefit paid in lump sum amount to the policyholder
  • A waiver of premium is offered in case of the demise of the policyholder
  • In case of accidental demise, Rs 10 lakh to be paid immediately
  • In case of natural demise, Rs 5 lakh to be paid immediately
  • Rs 50,000 paid every year till the date of maturity
  • Full maturity amount to be paid at the end of the policy term
  • Life risk cover over a certain period up to 3 years before the maturity
  • Available for both Indian residents and Non-Resident Indians (NRIs)

As the plans are the same, features of LIC Kanyadan policy and LIC Jeevan Lakshya policy are mostly similar.

Key Benefits of LIC Kanyadan Policy

LIC Kanyadan policy is beneficial for both children and parents in many ways. Let us look at some of the benefits offered under the policy:

  • It comes with a defined premium paying tenure.
  • Premium payment term and policy payment tenure have a difference of 3 years.
  • Annual, Half-Yearly, Quarterly, or Monthly payments can be made as per suitability.
  • 10 % of Sum assured is payable before 1 year of the date of maturity in case an unfortunate demise of the policyholder occurs.
  • There is a tenure of 13 years to 25 years for account maturity.
  • The plan can be opted for 6 years, 10 years, 15 years, or 20 years according to the policyholder.
  • Additional benefits are available in case of the demise of the policyholder if the policy is active.
  • Disability Rider benefit is also available if, the premium tenure continues for a minimum of 5 years.
  • A loan can be availed only after 3 years of consecutive premium payment.

Eligibility Conditions and Other Restrictions

Minimum Basic Sum Assured 

Rs 100,000

Maximum Basic Sum Assured 

 No Limit

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

Policy Term

 13 to 25 years

Premium Paying Term 

 (Policy Term - 3) years

Minimum Age at entry 

 18 years (completed)

Maximum Age at entry 

 50 years (nearer birthday)

Maximum Maturity Age 

 65 years (nearer birthday)

Daughter's Minimum Age

1 year

Additional Details

Here are other important details to know about LIC Kanyadan Policy before buying it.

  1. Exclusions

    No additional coverages or benefits of any kind if the policyholder commits suicide within 12 months of the policy initiation.

  2. Free Look Period

    There is a 15-day free look period available. If the policyholder does not understand the term and conditions, the policy can be revoked within the first 15 days of buying the policy.

  3. Grace Period

    A 30 days grace period is available if the premium payment frequency is annual, half-yearly, or quarterly. A 15 days grace period is available for monthly premium payments.

    Late fees are not charged during the grace period. If the period is extended, the policy will be terminated without any further intimations.

  4. Surrender Value

    Surrender value under LIC Kanyadan Policy is paid only if the premiums are paid completely for 3 years in a row before the surrendering option. LIC Kanyadan plan offers Guaranteed Surrender Value, depending upon the policy tenure and years of policy surrender.

Sukanya Samriddhi Yojana

A scheme launched by the Prime Minister of India in 2015, Sukanya Samriddhi Yojana is a plan under the Beti Bachao Beti Padhao campaign. The main goal of this scheme is also to build a safe and secure financial corpus for a girl child to protect her future.

Features of Sukanya Samriddhi Yojana

Let us look at some key features related to Sukanya Samriddhi Yojana Scheme:

  • It is a government-initiated program for a girl child.
  • A parent whose daughter is below 10 years old can open a Sukanya Samriddhi Yojana account.
  • The policy tenure is till the girl child is married after the age of 18 or 21 years, whichever earlier.
  • Interest compounded annually is at the rate of 7.6%.
  • Income tax is exempted under Section 80C of the Income Tax Act/
  • A minimum of Rs. 250 to a maximum of Rs. 1.5 lakh can be deposited in the SSY yearly.
  • Unlike other schemes, an account under SSY is to be opened in the name of the girl child and not the parents. 
  • Only 2 Sukanya Samriddhi Yojana accounts are allowed per family.

Benefits under Sukanya Samriddhi Yojana

  • Higher rate of interest
  • Saving from Income tax deductions
  • Lock-in period
  • Eligibility to make partial withdrawals
  • Guaranteed maturity benefits
  • Interest payment after the policy maturity

Sukanya Samriddhi Yojana Account Highlights

Here are some important highlights of Sukanya Samriddhi Yojana for your knowledge:



Rate of Interest

7.6% annually

The minimum deposit to open the account 

INR 250/- every year

The maximum deposit to open an account

INR 1,50,000/- every year

Eligibility Criteria

Must be a parent or legal guardian of the girl child

Age criteria

A girl child should be below 10 years

Maximum number of accounts

2 per family

Tenure of the scheme

Married after the age of 18 or 21 years, whichever earlier

Account opening name

Only in the name of girl child

Income Tax

Exemption under section 80C of Income Tax Act


Partial withdrawals can be done

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

To Sum It Up!

LIC Kanyadan policy and Sukanya Samriddhi Yojana are two identical plans with the same objective of protecting the financial future of a girl child. Having said that, there are some internal differences between both the schemes that should be considered carefully before purchasing any policy.

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