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.
Criteria |
LIC Kanyadan Policy |
Sukanya Samriddhi Yojna |
Age Criteria |
Daughter - At least 1 Year |
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) |
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.
It must be noted that there is no policy named LIC Kanyadan offered by the Life Insurance Corporation of India. 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.
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.
As the plans are the same, features of LIC Kanyadan policy and LIC Jeevan Lakshya policy are mostly similar.
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:
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 |
Here are other important details to know about LIC Kanyadan Policy before buying it.
No additional coverages or benefits of any kind if the policyholder commits suicide within 12 months of the policy initiation.
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.
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.
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.
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.
Let us look at some key features related to Sukanya Samriddhi Yojana Scheme:
Here are some important highlights of Sukanya Samriddhi Yojana for your knowledge:
Features |
Benefits |
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 |
Withdrawals |
Partial withdrawals can be done |
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
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.