The LIC has launched the LIC Kanyadan Yojana to provide financial coverage to the daughters of India. The birth of daughters is not welcomed in many parts of India. They are sexually or domestically abused or drop out from schools and colleges, and due to the existing dowry system in India, the Indian daughters cause financial agony to the parents at the time of their marriage. The old-age Indian culture has idolized the birth of a boy child while dreaded the birth of their daughters.
Right from birth, the Indian daughters are deprived of various basic rights, including early marriage, child abuse, rape, premature pregnancies, etc. India is placed fourth in the world in terms of Genocide of the daughters leading to a sex ratio: 1000 male to 943 female Indian daughters. The National Policy of India for the women empowerment, 2001, emphasized that the collective decision and reflection empowers the women, and it is important to empower the daughters to make them confident, healthy, and have equal access and opportunities in the economic and social activities of India.
The Life Insurance Corporation of India is an investment corporation and insurance company founded on 1st September 1956 through the Life Insurance of India Act. The Life Insurance Corporation of India has contributed about 7 percent of the GDP of India by selling life insurance in India. The LIC Kanyadan Yojana plans a backup for the daughters to secure their future by supporting in meeting her marriage and education expenses.
Features of LIC Kanyadan Yojana
Following are the features of LIC Kanyadan Yojana-
- The LIC Kanyadan Yojana aims to secure the future of the daughters of India and make them financially independent.
- LIC Kanyadan Yojana provides coverage for the life risk before the date of maturity, for up to 3 years.
- The lump-sum amount of money will be paid to the insured person at the time of maturity.
- The premium money will be waived-off, in case the father dies.
- In case of accidental death, the payment of Rupees. 10 lakhs will be paid immediately.
- In case of natural death, the payment of Rupees 5 lakh will be paid immediately.
- At the time of maturity, the entire amount of money will be paid to the person insured.
- People not residing in India can also acquire the benefit of the LIC Kanyadan Yojana without visiting India.
- The LIC Kanyadan Yojana is an extension of the LIC JeevanLakshya policy.
Benefits
The main aim of launching the LIC Kanyadan Yojana is to secure the future of Indian daughters to provide her financial stability to meet their marriage and education expenses.
The following are the benefits of the LIC Kanyadan Yojana are-
- The term for paying the premium under the LIC Kanyadan Yojana is limited.
- The LIC Kanyadan Yojana provides the insurance and savings including the profit-generating insurance plan.
- The period for paying the premium under the LIC Kanyadan Yojana is for less than 3 years.
- Various modes for paying the premium under the LIC Kanyadan Yojana is available that includes monthly, half-yearly, quarterly, and annually.
- 10 percent of the sum assured under the policy is paid every year till 1 year left before the date of maturity, in case of death of an applicant.
- The tenure of policy under LIC Kanyadan Yojana is between 13 years to 25 years.
- The option for payment is provided to the policyholder for 6, 10, 15, or 20 years.
- In case of the death of the father of the daughter within the policy tenure, additional benefits will be provided to the family members of such policyholders.
- If the tenure of paying the premium is for a minimum of 5 years, the disability rider benefit will be provided to the policyholder.
- In case the policyholder commits suicide within a year from the date of applying for the policy, the Life Insurance Corporation of India will pay 80 percent of the premium amount.
- The LIC Kanyadan Scheme is also available in Hindi for the easy understanding of the policyholders.
- The policyholder can apply for the loan amount against his policy if his premium amount is paid by the policyholder for the three consecutive holders.
- The LIC Kanyadan Scheme is exempted from the tax under the Tax Exemption laws of India, 1961.
Eligibility for LIC Kanyadan Yojana
Documents Required
The age of the applicant applying under the LIC Kanyadan Scheme must be between 18 years to 50 years of age.
The following documents must be submitted by the applicant-
- Aadhar Card
- Identity Card
- Certificate of Income
- Address proof
- Passport size photograph
- Proposal form duly filled and signed
- Cheque or Demand Draft
- Birth certificate of the daughter
Exclusion
If the policyholder commits suicide within 1 year from the date of applying for the LIC Kanyadan Scheme, any additional benefit of coverage will not be availed by the policyholder.
Free Look Period
If the policyholder is not satisfied with any of the policy clauses or any information related to the policy, a 14 day free look period is provided to the policyholder from the date of initiation of the policy under the LIC Kanyadan Yojana.
Grace Period
During the period of grace, no late payment or penalties will be charged in case the due date of the policy expires. The Life Insurance Corporation of India provides a grace period of 30 days for annual, biannual, or quarterly premium basis and 15 days for monthly premium basis. If such policyholder fails to pay the amount of premium before the expiration of the grace period, the policy under the LIC Kanyadan Yojana will be terminated automatically.
Surrender Value
The policyholder of LIC Kanyadan Yojana can surrender his policy at any time if he pays the premium amount for a minimum of 3 consecutive years. The total percent of the whole amount of premium will be the guaranteed surrender value. Such surrender value must exclude the rider premiums depending on the term of the policy and surrendered policy.
Conclusion
It is the time now that the Indians must break the centuries-old social beliefs and traditions and secure the future of the daughters of India. Financial independence will transform the daughter’s life and prepare her for the challenges that she might face in the outside world. The most valuable asset every parent can give to her daughter is the financial literacy and monetary empowerment. By securing the future of the girl child, one can secure the future of the nation.
As an Aatmnirbhar Sena, we are all willing to lend 360-degree assistance to those who are looking forward to getting benefit under this scheme. The LIC Kanyadan Yojana is a great initiative of the Life Insurance Corporation of India to contribute to each women count in the nation-building process of India.
The LIC Kanyadan Yojana has a similarity with the LIC Jeevan Lakshya Yojana that aims to spread awareness among the citizens of India to take care of daughters and provide them a safe and adequate lifestyle. It aims to fulfill the dream of every parent to make the future of their daughters more secure and reliable by making them financially stable for their future engagements in life.
