LIC Kanyadan Policy Vs Sukanya Samriddhi Yojana

Are you the proud parents of a girl child? Have you been looking forward to securing her financial future? If you see a happy and peaceful life without any financial compromises for your dear daughter, investing in Sukanya Samriddhi Yojna or the LIC Kanyadan Policy would be an ideal thing to do. Sukanya Samriddhi Yojna and LIC Kanyadan Policy both work toward the same purpose, i.e., granting financial support to the parents of the girl child. With the support of these plans, many parents of a girl child have been successful in fulfilling the dream of their daughter’s higher education or a grand wedding. Both the options are ideal for low or high income families, so you can easily go with any of the two. The common benefit in both policies is that you will get a fixed income as well as capital safety.

If both the options look suitable to you and you are not able to make the ultimate decision, know that having a clear understanding of the differences between the two would help in reaching an informed decision.

Difference Between Sukanya Samriddhi Yojana and LIC Kanyadan Policy

Sukanya Samriddhi Yojana is a small savings scheme, which comes under the Beti Bachao Beti Padhao scheme. The policy provides the best interest rates on the savings scheme. Talking about the LIC Kanyadan Policy, it is a version of the Jeevan Lakshya Plan offered by Life Insurance Corporation. This savings scheme is one of the best means to ensure that the girl child is financially secured when she needs it the most.

Do you have a life insurance cover for your daughter? Even if she has, make sure you do not avoid investing in Sukanya Samriddhi Yojna. Why? It is because while the life insurance will cover her, the Sukanya Samridhi Yojna will cover her for expenses when she grows older and goes for further education or gets married.

Although both schemes serve the same purpose, the few differences of Sukanya Yojana vs LIC are mentioned below.

Criteria	Sukanya Samriddhi Yojana	LIC Kanyadan Policy
Age Eligibility	The scheme is purchased under the name of the girl child before she is 10 years old.	Daughter - At least 1 Year; Father - 18 Years - 50 Years
Nationality Eligibility	Indian Citizens only	Outsiders can buy as well.
Account Holder	The account holder of the savings account is the girl child until her marriage.	Father of girl child.
Sum Assured Limit	Limited as per payment made.	Min: 1 Lakh Max: No limit.
Limit	1.5 Lakhs in a financial year.	No limit
Account Maturity Tenure	A girl child can manage the account until the age of 21 or until she is married after 18 years.	13 Years - 25 Years
Loan Facility	You cannot avail any loan.	One can avail the loan if the account holder pays for 3 consecutive years, and the account is active.
Payment Term	It needs to be paid every financial year and not over 1.5 Lakhs.	3 years under the policy term.
Type of Scheme	This is a savings scheme launched for the girl child's education and marriage reason.	It has a combined feature of the Jeevan Lakshya Policy.
In Case Of Death	In case of the account holder’s death, i.e., the girl child, the sum amount is paid to the parents at regular interest.	The premium is waived in case of the death of the father.
Compensation Offered By Scheme ( In case the Account Holder Dies)	No compensation is offered.	Natural demise: Immediate payment of INR 5 Lakhs Accidental demise: Immediate payment of INR 10 Lakhs Suicide within 12 months from policy initiation: 80% of the premiums are paid by the corporation apart from the surrender value and the tax amount.

By understanding the LIC Kanyadan Policy and Sukanya Samriddhi Yojna policies, it can be said that both these schemes provide financial security to the girl child. You can choose either of the schemes as per your liking or necessity.

Yet another benefit of investing in any of the two schemes is that they come with tax benefits under Section 80C of the Income Tax Act. The only difference in tax benefits is that while the Sukanya Samriddhi Yojna enjoys EEE tax benefits, LIC Kanyadan Policy does not.

Let us take a quick look at the documents required for buying both the policies.

Documents Required for Buying Sukanya Samriddhi Yojana

The list includes:

Birth certificate of the girl child
Address proof of the parent or legal guardian (Passport, Aadhaar card, etc.)
Identity proof of the parent or legal guardian (PAN card, voter ID card, etc.)

Documents Required for Buying LIC Kanyadan Policy

The list includes:

Birth certificate of the girl child
Identity proof of the parent or legal guardian (PAN card, voter ID card, etc.)
Address proof of the parent or legal guardian (Passport, Aadhaar card, etc.)
Income proof of the parent or legal guardian (Bank statement, salary slip, form 16, etc.)

How To Apply for Sukanya Samriddhi Yojana?

If you wish to apply for Sukanya Samridhi Yojana, follow the steps below:

Visit the official website of Sukanya Samriddhi Yojana. You can also visit the post office or your bank.
Correctly and completely fill up the form you will get from the official website of Sukanya Samriddhi Yojana or post office or your bank.
Submit the form with important documents.
Once the verification is successfully complete, your account will be ready for deposits.

How To Apply for LIC Kanyadan Policy?

If you wish to apply for LIC Kanyadan Policy, follow the steps below:

Visit the official website of LIC.
Select ‘LIC Kanyadan Policy’.
Duly fill the online form.
Submit the form with important documents.
After the process is complete and your verification is done, you will be informed via mail or message.

If interested, you can also visit your nearest LIC branch to apply.

Must Check:- Life Insurance Companies

Conclusion

Both the schemes are helping the girl child after and before the age of maturity to manage any financial issues. This scheme will assist the girl child in continuing her dreams without any issues. You can find all other details related to these policies on the official websites of the scheme and there only one can fill out the application form to avail the advantages in the scheme.

So, what are you waiting for? Go ahead and buy Sukanya Samriddhi Yojana or the LIC Kanyadan Policy only after choosing the best one as per your needs. Rest assured, irrespective of the policy you choose, you will definitely get your dearest daughter financially covered in the best possible way.