LIC Kanyadan Policy Vs Sukanya Samriddhi Yojana

Nowadays every parent or guardian wants to secure the future of their children and especially in the case of a girl child the parents are more worried. Henceforth, after understanding the need of the parents, the government and the LIC had launched two of their schemes. The one is Sukanya Samriddhi Yojana and the other one is LIC Kanyadan Policy. The LIC Kanyadan policy is just a modified version of the LIC Jeevan Lakshay Plan. Now, go through all the brief details of both the schemes to know about them precisely.

Difference Between Sukanya Samriddhi and Kanyadan Policy

Name of Policy Term of Policy Premium Paid


Sum Assured after maturity Payment Term
Lic Kanyadan Policy 15 Years

But the account holder has to pay the premium till 3 years before the policy term.

Therefore premium has to be paid for 12 years.

39966 + 4.50% GST Rs. 5 Lakhs 12 Years
Sukanya Samriddhi Yojana 21 Years of Age Minimum:250
Rs.46,821 (for Rs. 1000 per year) 15 Years

Sukanya Samriddhi Yojana

Those parents who want to invest in their daughter’s future now may go for Sukanya Samridhi Yojana. One will be able to save an amount for their daughters from the beginning of her childhood. This amount will help her in the future in many ways. Therefore, if you want to gift something to your daughter then this is the best option.

  • This scheme could be opted by the time of the girl’s birth and she can avail of all the financial benefits after the age of 18.

Under the scheme, the parents have to make an annual deposit which was earlier is rupees 1000 minimum but making it feasible for all the parents so that they could deposit the amount at that time it is now rupees 250 and the maximum amount which could be deposited is 1.5 lakh.

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Basic Details of Sukanya Samriddhi Yojana

  1. Eligibility Criteria: One can open the Sukanya Samriddhi account for their girl child from the time of her birth until she reaches the age of 10 years. If the child is specially-abled than 1year Grace will be provided to open the account.
  1. Interest Rate Under The Scheme: The interest rate provided under the scheme is 7.6% effective from April 1, 2020, and to June 2020. Hence, it is a good plan to invest for your girl child.
  1. Sum Assured or The Return: If the investment is done of Rupees thousand every year than after the age of 21, the girl child will be eligible to get a sum insured of 46,821. This amount will help her to continue her studies without any gap.
  1. Tenure Deposit Period: The maximum period for investing is 15 years and till 21 years the account will be at active mode. Hence, until the age of 21, the girl child will be able to get the benefits.
  1. Tax Benefits Under The Scheme: The tax benefits under the scheme are such that the account holder does not need to pay any tax for the amount to be withdrawn, on invested amount and the amount which is earned as interest.
  1. Exclusion For The Closure of The Account: There are two situations in both cases the central government is bound to close the scheme for an individual’s investment:
    • First, if in any case, the girl child dies.
    • Second, if any chronic disease or serious medical emergency is there.
  1. How To Withdraw From The Account?: The withdrawal could only be made by the parents or Guardians when the girl reaches the age of 18 years. The withdrawal amount will be equal to 50% of the amount which is in the account in the last financial year. This amount would be withdrawn to be used for higher education expenses or marriage expenses.
  1. How Much Deposit Is To Be Made For Opening an Account?: To get a Sukanya Samriddhi account for your girl child the Guardian or the parent has to pay rupees thousand in the beginning.
  1. Late Fees Penalty: If in any case, the parent was unable to pay the amount of rupees thousand in a specific financial year then from the very next year rupees 50 as a penalty will be added.

How To Open a Sukanya Samriddhi Account? – Procedure

  • One has to go to the nearest post office, bank or official website.
  • From all three mediums, one would be able to fill the form for Sukanya Samriddhi Yojana.
  • Once you go to the nearest post office a form will be provided to the applicant where all the necessary details of the child and the parents have to be mentioned properly.
  • Some documents would be required for investigation and verification which has to be attached to the form precisely.
  • Once you fill the form properly and attach the documents along with it now the form has to be submitted to the concerned person.
  • And after the verification of all the documents your account will be legally open.
  • The Sukanya Samriddhi Yojana is paying higher interest on the savings on the name of the girl child and this is the best advantage of the scheme.

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Documents Necessary For Opening an Account Under This Scheme

  1. The proof is the birth certificate of the child.
  2. Address proof of the guardian or the parents has to be submitted.
  3. Adhaar card or any other identity proof of the guardian or the parents have to be attached.

Benefits of Sukanya Samriddhi Yojana

  • One can be stress-free from the grounds of financial problems after investing in the policy.
  • This is the best investment plan for the girl child till now.
  • Even in case if you want to use the amount for higher education for the girl and also you can take the amount for securing her future and to let her study without any pressure or gap.
  • At the age when the girl has to get married this financial assistance could be used.
  • Henceforth, it is better to be planned early instead of sticking to any problem in the future.

LIC Kanyadan Policy

This plan is just a modified version of the LIC Jeevan Lakshay Plan and there is no such plan called LIC Kanyadan Policy.

If you want to give a special gift to your daughter then a good investment with fewer premiums is the best. One can invest for their girl child so that the amount could give financial assistance for the education or the marriage of the girl.

Lic has launched this new plan to give relief to the parents of the girl as the parents can invest now at the beginning for their girl. The basic details of this policy are provided below.

Basic Features of LIC Kanyadan Policy

  1. Financially Independent: The girl child will be able to stand independently and pay her higher educational fees or marriage expenses without asking for help from others.
  1. Life Risk Coverage: If the girl child meets any life-threatening disease before 3 years of the maturity date. Then full financial assistance will be provided for the medical coverage.
  1. Sum Assured: The child would be able to get the sum assured in a lump sum amount at the time of maturity.
  1. In The Case of Fathers Unfortunate Death: For example-If, the total amount after maturity is 10 lakhs then the immediate amount that would be provided to the daughter will be in the following way:
    • In case of accidental demise of father: In such cases, a 100% amount will be given with immediate payment of rupees 10 lakhs is made for the girl child.
    • In the case of non-accidental demise of father: In such cases, 50% of the sum assured that is rupees 5 lakhs will be provided to the girl in such an unfortunate case.
    • Before maturity: In this 10% of the sum assured until the maturity date of the policy, the rupees 50,000 will be paid every year.
  1. Can People Living Outside Avail Its Benefits: If any Indian citizens living outside the country then they can avail of this facility without coming to the country again and again.

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How To Apply For LIC Kanyadan Policy?

Now, one can easily go to the official website of the scheme to fill the application form or can also fill it through offline mode by visiting the nearest LIC branch office.

One has to mention all the details in the form correctly and after that, they will ask to attach the documents for verification.

  • After that, the form could be submitted and once the verification process is done you will be notified that you are eligible to get the benefits of the policy or not.

Documents Required For Applying

  1. The birth certificate of the girl child has to be provided.
  2. Any address proof has to be submitted by the parents.
  3. Along with this the financial income record of parents also has to be submitted.
  4. Any identification ID for the parent or guardian is to be attached to the form.

Benefits of Lic Kanyadan Policy

  • The first benefit of the scheme is that the paying term for the premiums will be less.
  • This type of insurance plan can be termed as the savings for the future of the girl.
  • One can also choose the Premium mode according to their feasibility that is – monthly, quarterly, half-yearly or annually.
  • If in any case the applicant or the guardian dies than 10% of the sum assured is to be paid every year till the maturity date of the scheme.
  • One can avail of this scheme for 6, 10, 15, or 20 years as per their suitability.


Therefore, both the schemes are assisting the girl child after and before the age of maturity to deal with any financial problems. This scheme will help the girl child to continue her dreams without any gap. One can choose either of the schemes as per their preference or their requirement. All other details are available on the official websites of the scheme and there only one would be able to fill out the application form to avail the benefits under the scheme.

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