LIC Kanyadan policy: All you need to know

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Life Insurance Corporation of India (LIC), country’s largest insurer, offers various types of life insurance policies to its customers. Jeevan Lakshya, also popularly known as ‘Kanyadan policy’, is a limited premium paying, non-linked and with-profits conventional endowment plan. In case of death of the policyholder at any time before maturity, a regular yearly income benefit is provided to the nominee under this scheme.

In addition, a lump sum is also made available at the end of the maturity period, regardless of the survival of the policyholder.

Features

– Minimum age at entry: 18 years

– Maximum age at entry: 50 years

– Maximum maturity age: 65 years

– Minimum basic sum assured: Rs 100,000

– Maximum basic sum assured: No limit

– Policy term: 13 years to 25 years

– Premium paying term: Policy term – 3 years

– Grace Period: 30 days for yearly, half-yearly or quarterly premiums; 15 days for monthly premiums.

Surrender

The policy can be surrendered at any time provided premiums have been paid for at least two years.

Loan

Loans can be availed under the policy after full premium payments for two years.

Maturity benefit

By the time the policy is ready for payment, the policyholder would receive:

Basic sum assured

Simple reversionary bonus

Final addition bonus if declared

In case of death 

In the case of unfortunate death of the policyholder during the policy term, the nominee will receive all of the following:

10% of the basic sum assured as an annual income benefit from the next policy anniversary date till one year before the maturity date while 110% of the basic sum assured payable on the maturity date.

Simple reversionary bonus payable at the maturity date

Final addition bonus if declared payable on the maturity date

Rider benefits

There are four optional riders available under this plan. A customer can opt for any three. The four riders are: accidental death and disability benefit rider, accident benefit rider, new term assurance rider and new critical illness benefit rider.

Popularity

LIC’s Jeevan Lakshya is more popular as Kanyadan policy than its original name. If one buys this policy when the daughter is one year old and deposits Rs 130 per day, then he or she will be able to deposit about Rs 3,900 in a month and would have deposited Rs 46,800 in the policy in a year. After 25 years, a period when one’s daughter approaches an age to get married, the policyholder will receive Rs 26.75 lakh at the time of maturity. This concept has popularised it among the agents as Kanyadan.