Raising a daughter comes with dreams, responsibilities, and careful financial planning. Whether it’s her higher education or marriage, preparing a financial safety net today ensures she doesn’t face uncertainties tomorrow. To help parents with this crucial goal, Life Insurance Corporation (LIC) offers the Kanyadan Policy — a tailor-made plan designed to build a corpus of ₹27 lakh through small, daily savings of just ₹121.
In this blog, we’ll explore how the LIC Kanyadan Policy works, what benefits it offers, and how it can become a game-changer for your daughter’s future.
🧾 What is LIC Kanyadan Policy?
The LIC Kanyadan Policy is not a separate policy but is based on LIC Jeevan Lakshya. It has been packaged and promoted with a focus on financial planning for a daughter’s marriage or higher studies.
It is a participating, non-linked life insurance plan that offers annual income support in case of the father’s death, waiver of premium, and a lump sum maturity amount at the end of the policy term.
💡 Why Choose the Kanyadan Policy in 2025?
- ✔ Daily savings of just ₹121 can result in ₹27 lakh
- ✔ Protects your daughter’s financial future
- ✔ Life insurance coverage included
- ✔ Waiver of premium on the father’s demise
- ✔ Tax benefits under Section 80C & 10(10D)
- ✔ Maturity amount at the end of the term
- ✔ Fixed returns with bonus additions
📊 LIC Kanyadan Policy – Example Calculation
Let’s understand with an example:
- Daily Saving: ₹121
- Monthly Saving: ₹3,630
- Annual Premium: ₹43,560
- Policy Term: 25 years
- Age of Daughter: 1 year
- Sum Assured: ₹10 lakh + Bonuses
- Expected Maturity Amount: ₹25–27 lakh
If the father passes away during the policy term:
- All future premiums are waived off
- LIC continues the policy
- Annual income of ₹50,000 till maturity
- ₹27 lakh is paid on policy maturity
This makes it a life-insurance-backed savings plan for your daughter’s milestones.
🔍 Key Features of LIC Kanyadan Policy
- Entry Age: 18 to 50 years (father)
- Policy Term: 13 to 25 years
- Premium Paying Term: Policy Term – 3 years
- Minimum Sum Assured: ₹1 lakh
- Premium Frequency: Monthly, Quarterly, Half-Yearly, Yearly
- Loan Facility: Available after 3 years
- Surrender Value: Available after 3 premium payments
- Bonus: Simple reversionary bonus + Final addition bonus
This flexibility allows you to choose a plan that suits your income and financial goals.
📈 Benefits of LIC Kanyadan Policy
1. ✅ Maturity Benefit
At the end of the policy term, you or your daughter will receive:
- Sum Assured + Accumulated Bonuses
- Ideal for marriage, education, or business startup
2. ✅ Death Benefit
In the unfortunate event of the policyholder’s (father’s) death during the term:
- Immediate lump sum death benefit to nominee
- Premiums waived off
- ₹50,000/year paid till policy maturity
- On maturity, ₹27 lakh still paid to daughter
This ensures the plan continues even after the breadwinner is gone.
3. ✅ Premium Waiver Benefit
On death of the policyholder, all future premiums are waived, and LIC continues to fund the policy — a unique security feature for the girl child.
4. ✅ Loan Facility
Need emergency funds? You can avail a loan against the policy once it has acquired surrender value after 3 years.
5. ✅ Tax Benefits
- Premiums paid are eligible under Section 80C
- Maturity amount is tax-free under Section 10(10D)
- Death benefits are also tax-free
🎯 How to Buy LIC Kanyadan Policy?
LIC agents and branch offices can help you set up a plan. Here’s what you need:
- Age proof (Aadhaar, PAN, etc.)
- Daughter’s birth certificate
- Recent passport-sized photos
- Bank account details
- KYC documents
Choose a plan with the right term and premium to match your daughter’s age and your financial goals.
📌 Eligibility Criteria
| Criteria | Details |
|---|---|
| Policyholder | Father (age 18–50 years) |
| Daughter’s Age | Should be under 10 years |
| Policy Term | 13–25 years |
| Minimum Premium | Starts from ₹121/day |
| Sum Assured | ₹1 lakh to ₹10+ lakh |
✅ Pros and Cons Summary
✔ Pros:
- Small daily savings turn into a big fund
- Security with life insurance
- Guaranteed returns with bonus
- Ideal for long-term goals
- Peace of mind in case of an untimely death
❌ Cons:
- No market-linked returns (like mutual funds)
- Early surrender may result in low value
- Not flexible like SIPs or ULIPs
- Only the father can buy it — not mother or guardian
🏁 Final Verdict: Is LIC Kanyadan Policy a Good Investment for Your Daughter?
If you are looking for a safe, disciplined, and guaranteed saving scheme specifically designed to support your daughter’s higher education or marriage, the LIC Kanyadan Policy is a solid option.
It combines:
- ✔ Life insurance
- ✔ Fixed maturity returns
- ✔ Bonus benefits
- ✔ Protection for your daughter’s dreams
Saving just ₹121 a day can give your daughter ₹27 lakh or more at a crucial stage in life — all while ensuring that your absence does not impact the plan.
🔔 Pro Tip:
Start this policy early — when your daughter is 1–3 years old — to get maximum maturity benefits with lower premiums.
Leave a Comment