LIC Kanyadan Policy

First and foremost, there is no such plan called the LIC Kanyadan Policy launched by the Life Insurance Corporation of India. It is just a customized version of the LIC JeevanLakshay policy used by many companies to sell their policy. LIC Kanyadan Policy is a perfect combination of protection and savings. It provides financial coverage for your beloved daughter with minimal premiums.

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In India, the main point of concern for every parent of a girl child is her financial expenses and marriage. LIC Kanyadan policy is of great relief for the family of a girl child as it helps them financially while the child is growing up.

Let us discuss the key features and benefits of the LIC Kanyadan plan in detail to get a better understanding of the policy.

Key Features Of LIC Kanyadan Policy

LIC Kanyadan Policy offers great features to the parents of the girl child so that they have no burden while raising her. It is every child’s right to have a good education and fulfill their future dreams.

Here are some features of the LIC Kanyadan policy that will give you more clarity.

  • Offers financial security to your daughter
  • A lump-sum payment to the policyholder at the time of maturity
  • In case of the demise of the insured parent, the premium is waived off
  • Rupees 10 lakh paid immediately in case of accidental demise
  • Rupees 5 lakh paid immediately in case of non-accidental or natural demise
  • Rupees 50,000 paid every year till the date of maturity
  • Full maturity amount to be paid at the time of maturity of the policy
  • Life risk cover over a certain period up to 3 years before the maturity
  • NRI’s can also avail of his policy without directly visiting the country
  • Features of LIC Kanyadan Policy are somewhat similar to that of LIC Lakshya Policy

Key benefits of LIC Kanyadan Policy

Investing in LIC Kanyadan Policy will not only secure your daughter’s future but will also benefit you as a parent in many ways.

Here are some benefits of the LIC Kanyadan Policy that will offer your child financial security in terms of education, marriage as well as achieving special milestones in life.

  • Limited premium paying term
  • Premium payment term is less by 3 years from policy payment term
  • Payments can be made Annually, Half-Yearly, Quarterly or Monthly
  • In case of demise of the policyholder during the policy term, 10% of Sum Assured is to be paid every year till 1 year before the Maturity Date
  • Account Maturity tenure is from 13 years to 25 years
  • The policyholder can opt for a 6, 10, 15 or 20, year plan
  • Additional benefits in case of demise of the policyholder during the policy tenure
  • Disability Rider benefit applicable in case the premium tenure is at least 5 years
  • If the policyholder commits suicide within 12 months from policy initiation, 80% of the premiums are paid by the corporation apart from the surrender value or the tax amount, whichever higher
  • The loan can be availed in case the policyholder pays the premium for 3 consecutive years considering the policy is still active

Eligibility Conditions and Other Restrictions

Minimum Basic Sum Assured 


Maximum Basic Sum Assured 

 No Limit

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

Policy Term

 13 to 25 years

Premium Paying Term 

 (Policy Term – 3) years

Minimum Age at entry 

 18 years (last birthday)

Maximum Age at entry 

 50 years (nearer birthday)

Maximum Maturity Age 

 65 years (nearer birthday)

Daughter's Minimum Age

1 year

Sample Illustrative

If policyholder buys LIC Kanyadan Policy at the age of 30 and plans to opt for a 15-year policy term, here is how the returns would follow:

Policy Term

15 Years

Policy Purchase Year


Premium Payment Term (15-3)

12 years

Sum Assured

Rs. 5 lakhs

Premium Paid First Year

Rs. 39966 + 4.50% GST

Premium Amount second Year Onward

44 years

Maturity Amount (If policyholder survives)


Maturity Amount (If policyholder Dies)


Additional Details

Here are some other important details to be known about LIC Kanyadan Policy before buying it.

  1. Exclusions

    If the policyholder commits suicide within 12 months of the initiation of the policy, no benefits or additional coverages shall be paid

  2. Free Look Period

    A free look of 15 days is provided under the LIC Kanyadan Policy from the date of commencement of the policy. If unsatisfied with the clauses, the policy shall be revoked.

  3. Grace Period

    The policyholder is allowed a grace period of 30 days for annual, half-yearly, or quarterly payments and 15 days for monthly premium payments. No late fees or penalty is charged upon the policyholder during the grace period. If the premium unpaid even after the grace period, the policy will be terminated without any further intimations.

  4. Surrender Value

    Surrender value shall be paid only if the premiums are duly paid for at least 3 consecutive years before surrendering the LIC Kanyadan Policy. The guaranteed surrender value is the total percentage of premiums excluding rider premium which depends on the policy term and surrender year.

Just like SukanyaSmriddhiYojana, LIC Kanyadan Policy also focuses on the girl child, making these 2 schemes quite similar.

Although both the schemes focus on the girl child, here is a comparison between these 2 to make you understand the difference between the two much more clearly.



LIC Kanyadan Policy

Age Eligibility 

Before 10 years of age

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

Nationality Eligibility

Indian Citizens only

NRI's can also buy

Account Holder

Girl child until marriage

Father of girl child

Sum Assured Limit

Limited as per payment made

Min: 1 Lakh
Max: No limit

Payment Limit

1.5 Lakhs in a financial year.

No limit

Account Maturity Tenure 

A girl child can manage the account until the age of 21 or until she is married after 18 years.

13 Years - 25 Years

Loan Facility

No loan facility

The loan can be availed after 3 consecutive premium payments

Payment Term

Maximum 1.5 Lakh every financial year

3 years under the policy term

Type of Scheme

Launched by Government under "Bet Bachao, BetiPadhao" Plan

Based on LIC JeevanLakshya, not originally launched by LIC

In Case Of Death

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

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

Compensation Offered ( In case the Account Holder Dies)

No compensation is offered

Natural demise: Immediate payment of INR 5 Lakhs
Accidental demise: Immediate payment of INR 10 Lakhs
Suicide within 12 months from policy initiation: 80% of the premiums are paid by the corporation apart from the surrender value and the tax amount


LIC Kanyadan Policy is widely becoming popular even though LIC does not offer any such policy in its name. LIC JeevanLakshay policy is the policy on which LIC Kanyadan policy is based. Mainly because of the name focusing more on the girl child, LIC Kanyadan Policy is becoming famous amongst the buyers. A pure endowment plan, the Kanyadan plan offers great risk covers along with great saving options making it a good plan to buy for your daughter.

Written By: PolicyBazaar - Updated: 20 September 2021
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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