The Life Insurance Corporation (LIC) has designed a policy dedicated for daughters. It is called LIC Kanyadan policy. The policy seeks to help parents with low earnings in raising a corpus for the marriage of daughters.
Under LIC Kanyadaan policy, an investor will have to deposit Rs 130 daily (Rs 47,450 yearly). The premium will be paid for less than 3 years of the policy term. After 25 years, the LIC will pay him/her approximately Rs 27 lakh.
The minimum age of an investor for enrollment in the LIC Kanyadaan policy is 30 years and the minimum age of investor’s daughter should be 1 year.
An investor can buy the LIC Kanyadan policy for 13 to 25 years. The policy covers risks along with the option of savings until the term ends. In case the policy holder expires after enrollment, the LIC will pay the premium amount. The premium amount approximately Rs 11 lakh will be paid to the policy holder’s daughter after attaining the age of 21 years.
The maturity period of this policy is 65 years and its minimum term is 13 years. LIC will pay an additional amount of Rs 5 lakh to the policy holder’s family if the enrollee dies due to accidental reasons.
If a person is taking policy of Rs 5 lakh sum assured, he/she will have to pay premium for 22 years. The monthly premium will be Rs 1,951 (approximately). After maturity, LIC will pay a sum of Rs 13.37 lakh approximately to the policy holder.
Similarly, if a person is taking policy of Rs 10 lakh, he/she will have to pay premium for 25 years. The monthly premium will be Rs 3,901 (approximately). After maturity, LIC will pay Rs 26.75 lakh. To the policy holder.
LIC Kanyadaan policy: Tax benefit
Under Section 80C of the Income Tax Act 1961, an investor can claim tax exemption on paid premiums. The tax exemption is a maximum of up to Rs 1.50 lakh.
(Disclaimer: This article is only for information purpose. Readers/Investors are advised to to seek experts’ advise before making any invement)