LIC of India
LIC Kanyadan Policy

LIC Kanyadan Policy

LIC Kanyadan Policy is a customized version of LIC Jeevan Lakshay policy sold by LIC agents. It is a complete and comprehensive plan that is specially designed to offer financial help to the girl child at an affordable premium rate.

In our country, whenever a girl child is born, the first thing that comes to our mind is the expenses of education and her marriage. But to function at your ease, LIC of India has presented this customized plan, LIC Kanyadan Policy, a participating, individual, non-linked, life assurance plan which offers a combination of protection and savings. With this policy, you can not only take care of your daughter’s growing expenses, even in your absence but also the policy takes care of liquidity needs through its loan facility.

Eligibility Criteria of LIC Kanyadan Policy

ParametersKey highlights
Entry age of the policyholder

Minimum – 18 years

Maximum – 50 years

Entry age of the daughterMinimum 1 year
Sum assured

Minimum – Rs. 1 lakh

Maximum – No upper limit

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

Maximum maturity age65 years
Policy term13 years to 25 years
Premium paying termPolicy term minus 3 years
Premium payment optionsMonthly, quarterly, half-yearly, and yearly
Who can buy the policyOnly the father/mother, not the daughter herself.
Riders benefitsAvailable

What Are The Key Benefits of LIC Kanyadan Policy?

Apart from securing your daughter’s future, this policy offers many other benefits to achieve different milestones and to fulfill the varied needs of your daughter in many ways. To know more about the policy, especially the key LIC Kanyadan Policy benefits, have a look at the below mentioned.

  • In case of the unfortunate and untimely demise of the insured parent, the premiums are waived off to lessen the financial burden.

  • In the event of death of the Life Assured during the active policy term, “Sum Assured on Death” as the death benefit is paid by the policy whereas the “Sum Assured on Death” is defined as 7 times of annualized premium or Sum of 110% of Basic Sum Assured, which shall be payable on date of maturity and Annual Income Benefit equal to 10% of the Basic Sum Assured, whichever is higher.

  • Death benefit includes The Vested Simple Reversionary Bonuses and Final Additional Bonus if any.

  • The policy pays Rs. 10 lakhs immediately in case of the accidental demise of the insured parent.

  • In the event of non-accidental or natural death, Rs. 5 lakh is paid immediately.

  • Until the date of maturity Rs. 50,000 is paid every year.

  • In case the Life Assured survives the entire policy term during an active policy, the “Sum Assured on Maturity” that is equal to Basic Sum Assured along with vested Simple Reversionary bonuses and Final Additional Bonus, if any, will be paid as the maturity benefit.

  • Under this plan, different Riders options are available to enhance the strength of the policy and to provide more protection.

  • The plan offers you the flexibility to receive the death benefit either as a lump sum amount or as in installments, monthly, quarterly, half-yearly, and annually to generate a regular flow of income for a certain period of time.

  • This is a with-profit endowment insurance plan that comes with insurance benefits coupled with savings advantages.

  • LIC has made a PDF of the policy in the Hindi language too so that it can become easily accessible to a wider range of people.

  • The premium chart of the LIC Kanyadan Policy is made in such a way that it can be understood effortlessly.

  • Under this policy, the Loan facility is available provided at least two full years’ premiums have been paid and that is subject to the terms and conditions of the Corporation. The maximum loan as a percentage of surrender value shall be as • For in-force policies – 90% • For paid-up policies – 80%.

  • Tax exemption benefit may be availed of with this policy as per the Income Tax Law of India, 1961.

What Are The Exclusions of The LIC Kanyadan Policy?

While LIC Kanyadan Policy has come up with a sack full of benefits, it has certain exclusions also. Let us know about the exclusions of the policy below.

  • In case of the insured parent commits suicide at any time within 12 months from the date of commencement of risk, the Corporation will not entertain any claim under the policy except for 80% of the total premiums paid provided the policy is in force.

  • On the other hand, if the insured parent commits suicide within 12 months from the date of revival, an amount of 80% of the total premiums paid till the date of death or the surrender value available as on the date of death, whichever is higher will be payable. The insurer will not take care of any other claim under the policy.

How Does LIC Kanyadan Policy Work?

For your better understanding, here is an example to explain how LIC Kanyadan Policy functions. Suppose, Mr. Sharma, a 36-year-old businessman has bought LIC Kanyadan Policy for a policy period of 15 years. The investment for the maximum sum assured is Rs. 25 lakhs. In this way, you can also check the LIC Kanyadan Policy premium amount for the given criteria. Follow the below table for more details.

AgeGenderPolicy termPremium payment term (policy term -3)Policy purchase yearSum assuredAny Rider BenefitPremium paid in the first year (Annual mode)Premium amount second year onwards
36Male1512 (15-3)2021Rs. 25 lakhsNoRs. 199770 + 8990 (4.5% GST) = 208760199770 + 4495 (2.25% GST) = 204265

Kanyadan Policy Benefit Illustration

Plan BenefitsAmount (Rupees)
  1. Guaranteed Sum Insured
  2. Bonus + Final Additional Benefit (FAB)



Benefit 1: Policy maturity returns on 15th year = 1 + 2 (Tax Free)

Benefit 2: Approximate loan availability after 3 years


80% of Surrender Value

Benefits for Nominee/Family after the Life Assured:

From death, year to till 15th year of plan maturityAmount
  1. Annual Income Benefit: 10% of the sum assured paid every year till maturity = 250000 x 14 years
  2. If accidental death: DAB paid (If Rider not Selected)



On the 15th year of plan maturityAmount
  1. Maturity benefit: Guaranteed 110% of sum assured paid
  2. Bonus paid: Accumulated bonus + Final Additional Benefit (FAB)



Total payable to the nomineeAmount
1 + 2 + 3 + 4 (Tax Free)8750000

Additional Information About LIC Kanyadan Policy

To know more about the policy, keep an eye on the following.

Surrender Value– If you are unable to continue the LIC Kanyadan policy, you can surrender it at any time only if you have paid at least premiums of consecutive two years. On surrendering the policy, the LIC will pay the Surrender Value that is equal to Guaranteed Surrender Value or Special Surrender Value, whichever is higher.

Guaranteed Surrender Value – The Guaranteed Surrender value is dependent on the policy term and the policy year in which the policy is surrendered. It will be equal to the total premiums paid (excluding extra premiums, taxes, and premiums for rider(s) if opted for multiplied by the Guaranteed Surrender Value factors applicable to total premiums paid.

For your better understanding, here are the tables that will express the surrender value along with the guaranteed surrender value of LIC Kanyadan Policy based upon the various factors: (Add image charts)

Special Surrender Value – It is determined by the insurer itself from time to time and it is subject to the prior approval of IRDAI.

Free Look Period – If you are not satisfied with the LIC Kanyadan Policy, you can return the plan within 15 days from the date of receipt of the policy bond and you need to state the reasons for objections. On the receipt of the same, the insurer will cancel your policy and return the premium amount after deducting a certain amount.

Sample Illustrative Premium – The sample illustrative annual premiums (in rupees) for Basic Sum Assured of Rs. 1 lakh for Standard lives are as under:

AGE/TERM (in years)13 (PPT = 10)15 (PPT = 12)20 (PPT = 17)25 (PPT = 22)

Grace Period –
For the payment of yearly or half-yearly or quarterly premiums, the grace period is 30 days whereas it is 15 days for monthly premiums from the date of the first unpaid premium. Within this grace period, you need to pay the premium of your policy otherwise the policy will be terminated without any further word.

Rebate – How the rebate for the LIC Kanyadan Policy is calculated, is given below.

Mode Rebate:

Yearly mode – 2% of Tabular Premium

Half-yearly mode – 1% of Tabular premium

Quarterly & Salary deduction – NIL

High Sum Assured Rebate (on Premium):

Basic Sum Assured (Rupees)Rebate (Rupees)
1,00,000 to 1,90,000Nil
2,00,000 to 4,90,0002% of Basic Sum Assured
5,00,000 to and above3% of Basic Sum Assured

What is The Buying Process of LIC Kanyadan Policy?

You can only buy LIC Kanyadan Policy (LIC Jeevan Lakshay) offline. To know more about the offline buying process, follow the below details.

You can visit the nearest branch of the company and their experts will guide you through the entire buying process smoothly. Else, you can also take help from one of their registered and licensed agents for buying LIC Kanyadan Policy. They are experienced enough to offer you guidance throughout the procedure seamlessly. Apart from these, you can also contact the insurer by calling them on their given phone number to seek guidance for buying this plan.

How To Revive Your LIC Kanyadan Policy?

If you remain unable to pay the premiums within the Grace Period, the policy will be terminated without any further word. But this lapsed policy can also be revived within a period of 5 consecutive years from the date of the first unpaid premium and before the date of maturity. The revival will only be effective when the due arrears of the premiums along with the half-yearly compounding interests are paid. This interest rate is determined by the Corporation from time to time and on the satisfaction of continued insurability of the life assured on the basis of given information, details, documents, reports, and in this case, additional information might be required along with the underwriting policy of the insurer at the time of revival.

The revival will be effective only after the Corporation approves, accepts, and issues a receipt of revival. All the rights and terms and conditions regarding this revival of a terminated policy are controlled by the Corporation. If you have opted for the Rider(s) benefits, the revival of the rider(s) will be considered along with the revival of the Base Policy, not separately.

Know more about LIC lapsed policy revival scheme.

Frequently Asked Questions

You can easily buy Future Generali policies online in a matter of minutes. The limited documents and quick processing time make it a favorable option for many.

A few primary highlights are quick and hassle-free policy issuance process in a matter of minutes, claims process is very quick and straightforward, cashless repairs in a large network of garages, and towing services within city limits during an accident.

The required documents are as follows:

  • The girl child’s birth certificate
  • Proof of the parent’s or legal guardian’s identity (PAN card, voter ID card, etc.)
  • Parental or legal guardian proof of address (Passport, Aadhaar card, etc.)
  • Proof of the parent’s or legal guardian’s income (Bank statement, salary slip, form 16, etc.)

The LIC policy bond will be issued after the acceptance of your proposal.

For this, go to the ‘Claim Forms’ section under the official website of the Corporation. And click on that. There you will find not only the maturity form but also other claim forms as well such as revival form, death claim form, survival benefit form, etc.

All returns or proceeds including bonus, sum assured, annual income benefit or surrender value from LIC Kanyadan endowment policy are tax free under Section 10 (10D) of the Income Tax Act,1961.

If you have paid all the premiums for at least consecutive two years but have not paid any subsequent premium, then the policy will not be fully invalid. But it will subsist as a paid-up policy till the end of the policy term.

LIC has recently introduced this feature. Premiums for all the policies, now, can be paid at any of the CSC centers throughout the country.

If you want to apply for LIC Kanyadan Policy online, follow the below steps:

  • Go to the official website and search for the ‘Apply Now’ option, click on that.
  • Next, select the desired plan and fill in with the necessary details and personal information such as name, address, mobile number, email address, etc.
  • Put further information if required and select the ‘I Agree’ option.
  • Your given information will be verified by the representative of the insurer and then the application for the policy will be registered.

Four rider benefits are available with this policy and one can opt for a maximum of 3 riders by paying a little additional premium amount. The available riders are – LIC’s Accidental Death and Disability Benefit Rider, LIC’s Accident Benefit Rider, LIC’s New Term Assurance Rider, and LIC’s New Critical Illness Benefit Rider.

The policy will participate in profits of the Corporation and the insured parent will be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, while the policy is in full force.

For this, you can use the in-built premium calculator option under the official website of the company. There you need to put ‘Basic Details’ such as name, address, email ID, etc. and then on the next page select the desired product and proceed. The LIC Kanyadan Policy premium will be displayed before you on the basis of your given data.

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