• The LIC Kanyadan Policy is a tailored version of the LIC Jeevan Lakshay policy, available through LIC agents.
• This plan is designed to provide financial support for a girl child at an affordable premium.
• LIC of India has introduced a customized plan, a participating, individual, non-linked life insurance plan that combines protection and savings.
• You can manage your daughter’s rising expenses even when you are not around, and the policy also provides liquidity with its loan facility.

Key Benefits of LIC Kanyadan Policy

• Premiums are waived after the early death of the insured parent.
• Sum Assured on Death equals 7 times the annual premium or 110% of Basic Sum Assured, depending on which is higher.
• The death benefit includes Vested Simple Reversionary Bonuses and Final Additional Bonus, if applicable.
• Rs. 10 lakhs is paid immediately for accidental death.
• Rs. 5 lakhs is paid immediately for natural death.
• Rs. 50,000 is paid every year until maturity.
• Sum Assured on Maturity equals Basic Sum Assured plus vested bonuses plus FAB.
• Rider options are available to improve policy protection.
• The death benefit can be received as a lump sum or in installments (monthly, quarterly, half-yearly, or annually).
• This is a with-profit endowment plan that offers savings benefits.

The LIC Kanyadan Policy offers a straightforward benefit structure that combines guaranteed returns with bonuses. This setup provides both security and long-term value. According to this plan, the Guaranteed Sum Insured is ₹25,00,000, which is the base for the maturity benefit. In addition, the policy gathers Simple Reversionary Bonuses and a Final Additional Bonus (FAB), which together add another ₹25,00,000, assuming standard bonus behavior like other participating LIC plans. These elements result in a maturity value of ₹50,00,000, payable after the 15-year term. This maturity amount is tax-free under current tax rules for eligible life insurance policies.

The policy also offers liquidity through a loan facility after three years. The loan amount is roughly 80% of the surrender value. This ensures that policyholders can access financial support during emergencies without needing to end the policy. This combination of guaranteed returns, bonus participation, and liquidity makes the policy a long-term financial solution focused on daughters.

LIC Kanyadan Policy Death Benifits

The LIC Kanyadan Policy includes a clear death benefit plan aimed at providing consistent financial support for the daughter even after the insured person passes away. From the year the parent dies until the policy matures in 15 years, the nominee receives an Annual Income Benefit of 10% of the Sum Assured. This equals ₹2,50,000 per year for a ₹25,00,000 sum assured. Over 14 years, this amounts to ₹35,00,000, offering reliable financial support during the child’s formative years. If an accidental death occurs and the Accident Benefit Rider is not selected, the Death Accident Benefit (DAB) will not be paid. Therefore, the sample illustration shows ₹0 in that category. When the policy reaches the 15th year, the nominee gets the maturity-linked benefits. This includes 110% of the Sum Assured (₹27,50,000) and the accumulated bonuses along with the Final Additional Bonus, totaling ₹25,00,000. When combined with the annual income payouts, the total benefit paid to the nominee comes to ₹87,50,000, which is entirely tax-free under current life insurance laws. This payout structure, with annual income support followed by a lump sum at maturity, delivers both immediate and long-term financial security for the beneficiary.

How the Surrender Value of LIC Kanyadan Policy Calculated

The surrender value of the LIC Kanyadan Policy is an important part of the plan, especially for policyholders who might need cash before the policy ends. This plan is a customized version of LIC’s traditional participating endowment products. Its surrender value is calculated using LIC’s established actuarial framework. The final amount paid upon early withdrawal is determined by comparing two calculations, the Guaranteed Surrender Value (GSV) and the Special Surrender Value (SSV). The higher of the two amounts becomes the total surrender payout.

Guaranteed Surrender Value (GSV)

The Guaranteed Surrender Value is the basis for all surrender calculations and becomes available only after the policyholder has paid at least two consecutive years of premiums. GSV guarantees a minimum return no matter the bonus earnings. It is based on the total premiums paid, excluding GST, extra premiums, and rider premiums. LIC calculates GSV using this formula:

GSV = (Total Premiums Paid × GSV Factor) + (Accrued Bonuses × Bonus GSV Factor)

Where:

• GSV Factor is a percentage, usually between 30% and 50%, depending on the policy year.
• Bonus GSV Factor applies to vested bonuses when applicable.

As the policy years pass, these factors change, leading to a gradual increase in the guaranteed amount. While GSV provides a base value, it often ends up being the lower of the two surrender values in long-term policies because it grows more slowly compared to accumulated bonuses.

Special Surrender Value (SSV)

The Special Surrender Value usually offers a more accurate picture of the policy’s financial value at the time of discontinuation. Unlike GSV, SSV is flexible and is updated regularly by LIC, with IRDAI approval. It includes the policy’s Paid-Up Value along with accumulated Simple Reversionary Bonuses.

To calculate SSV, LIC follows a three-step framework.

Step 1: Calculate Paid-Up Value

Paid-Up Value = Sum Assured × (Number of Premiums Paid ÷ Total Premiums Payable)

Step 2: Add Accrued Bonuses

Total Paid-Up Benefit = Paid-Up Value + Accrued Bonuses

Step 3: Apply SSV Factor

SSV = Total Paid-Up Benefit × SSV Factor

Where:

The SSV Factor changes each year and is affected by the remaining policy term as well as LIC’s assessments. Because SSV increases with bonus accumulation, it often surpasses GSV during mid to long policy durations.

Final Surrender Value Payable

After working out both values, LIC pays whichever amount is higher:

Final Surrender Value = max(GSV, SSV)

This process ensures transparency and guarantees that policyholders always receive the best possible outcome according to the policy rules. The surrender value also determines the loan amount available under the plan. As mentioned earlier, LIC allows loans up to 90% of the surrender value for in-force policies and 80% for paid-up policies. This highlights the surrender value’s role as a source of cash and collateral.

Explore More LIC Calculators

If you are evaluating long-term savings and protection options similar to the LIC Kanyadan Policy, you may also find value in exploring LIC’s other traditional participating plans. Each plan caters to a different financial objective and can complement your family’s overall financial planning:

LIC Jeevan Umang Calculator – A whole-life income plan offering guaranteed annual survival benefits along with life cover up to age 100. This tool helps you project income payouts, bonuses, maturity value, and long-term returns based on your premium and policy term. It is particularly useful for families seeking lifelong income streams rather than time-bound payouts.

LIC Jeevan Labh Calculator – A limited-premium endowment plan that combines disciplined savings with life protection. The calculator allows you to estimate maturity value, death benefit, bonus accumulation, and surrender value with precision. It is ideal for users who prefer shorter premium-paying periods while still targeting a sizeable maturity corpus.

People Also Ask

What is the maturity amount for LIC Kanyadan Policy?

The maturity amount under the LIC Kanyadan Policy is calculated by combining the Basic Sum Assured with the bonuses declared by LIC over the policy term. For example, if the guaranteed sum assured is ₹25,00,000 and the policy accumulates another ₹25,00,000 in bonuses, the total maturity value becomes ₹50,00,000 after 15 years. This amount is completely tax-free under current income tax laws, making it a secure and valuable payout for the policyholder’s family.

How do I calculate my LIC Kanyadan maturity amount?

To calculate the maturity amount, you need to add the Basic Sum Assured, the Simple Reversionary Bonuses declared annually, and the Final Additional Bonus (FAB) payable at maturity. The formula is straightforward: Maturity Value = Sum Assured + Accrued Bonuses + FAB. LIC also provides online calculators and mobile apps that allow you to estimate your maturity amount based on your premium, policy term, and chosen sum assured.

Is LIC Kanyadan Policy a good investment?

LIC Kanyadan Policy is considered a safe and reliable investment option because it combines life protection with long-term savings. It ensures financial support for your daughter’s future expenses such as education or marriage, while also offering guaranteed returns, participation in bonuses, and liquidity through loans. Since the maturity proceeds are tax-free, it provides both security and financial growth, making it a strong choice for parents who want to plan responsibly for their child’s future.

What are the benefits of LIC Kanyadan Policy?

The policy offers several benefits including waiver of premiums after the insured parent’s death, annual income support to the daughter until maturity, and a lump sum payout at maturity with bonuses. It also provides immediate payouts of ₹10 lakhs in case of accidental death and ₹5 lakhs in case of natural death. Additionally, policyholders can avail loans after three years, and the maturity amount is tax-free. Rider options are available to enhance protection, making this plan a comprehensive financial solution.

Who can buy the LIC Kanyadan Policy?

This policy can only be purchased by the father or mother of the daughter. The daughter herself cannot be the proposer. This structure ensures that the responsibility of securing the child’s future rests with the parent, while the daughter remains the beneficiary of the plan.

What is the surrender value of LIC Kanyadan Policy?

The surrender value is calculated by comparing the Guaranteed Surrender Value (GSV) and the Special Surrender Value (SSV), with the higher of the two being paid to the policyholder. GSV is based on premiums paid and accrued bonuses, while SSV is calculated using the paid-up value and accumulated bonuses multiplied by an SSV factor. This ensures that policyholders receive the best possible payout if they decide to discontinue the policy before maturity.

How does the death benefit work in LIC Kanyadan Policy?

In case of the insured parent’s death, the policy provides consistent financial support to the daughter. The nominee receives an annual income benefit equal to 10% of the Sum Assured until maturity. For example, with a ₹25,00,000 sum assured, the daughter would receive ₹2,50,000 every year for 14 years, totaling ₹35,00,000. At maturity, the nominee also receives 110% of the Sum Assured along with bonuses and FAB, which can bring the total payout to around ₹87,50,000, all tax-free.

Can I use a LIC Kanyadan Policy maturity calculator online?

Yes, LIC provides maturity calculators both on its official website and mobile app. These calculators are available in Hindi and English, and they allow you to estimate premiums, maturity values, and death benefits based on your chosen sum assured and policy term. This makes it easy to plan your finances and understand the benefits of the policy in advance.

What is LIC Plan 733 (Kanyadan Policy)?

LIC Plan 733 refers to the Jeevan Lakshay plan, which has been customized as the Kanyadan Policy. It is a participating, non-linked endowment plan that combines protection and savings, specifically designed to provide financial support for a girl child. This plan is marketed by LIC agents as the Kanyadan Policy to highlight its focus on securing a daughter’s future.

What are the rules for LIC maturity amount?

The maturity amount is payable only if all premiums are paid and the policy is in force. It includes the Basic Sum Assured along with bonuses and FAB, and under current tax laws, the maturity proceeds are tax-free. Loans can be availed against the surrender value without affecting the maturity benefits, and the payout structure ensures both guaranteed returns and participation in LIC’s profits through bonuses.

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