Sukanya Samriddhi Yojana Vs LIC Kanyadan Policy: Which One is Better for Your Daughter’s Future?

What is LIC Kanyadan Policy?
What is Sukanya Samriddhi Yojana?
Comparison of LIC Kanyadan Policy and Sukanya Samriddhi Yojana
– Eligibility, Maturity Amount, Tax Benefits, Interest Rates etc.
Pros and Cons of Both Policies
Conclusion

Are you a parent who wants to secure the future of your daughter financially? If yes, then you have landed on the right page! We know as a parent, nothing is more important than securing your child’s future. And when it comes to financial security for daughters, two popular schemes in India come into play – Sukanya Samriddhi Yojana and LIC Kanyadan Policy. But which one is better? In this blog post, we will thoroughly compare both these policies and help you make an informed decision about which one suits your daughter’s needs best. So buckle up parents, because this article is all about making sure that our little princesses get the best possible start in life!

Introduction

It is a well-known fact that the education of a girl child is very important. It not only helps in the development of the girl child but also ensures that she is financially independent. In order to make sure that your daughter gets the best possible education, you need to start planning for her future early on. One of the best ways to do this is by investing in a good life insurance policy.

There are two popular life insurance policies that you can consider investing in for your daughter’s future – Sukanya Samriddhi Yojana (SSY) and LIC Kanyadan Policy. Both these policies have their own set of features and benefits. So, which one should you choose? Let’s take a look at both these policies in detail to find out which one is better for your daughter’s future:

Sukanya Samriddhi Yojana (SSY):

Features:

1. The Sukanya Samriddhi Yojana is a government-sponsored savings scheme that was launched in 2015.

2. It is exclusively for the benefit of the girl child.

3. Under this scheme, you can open an account in the name of your daughter and make regular deposits into it. The account will mature when your daughter turns 21 years old.

4. The interest earned on the account is exempt from income tax. Additionally, the deposits made into the account are also eligible for income tax deduction under Section

What is LIC Kanyadan Policy?

LIC Kanyadan Policy is a special insurance policy for the benefit of unmarried daughters. It provides financial protection to the daughter in case of death or dismemberment of the policyholder before her marriage. The policy also pays a lump sum amount to the daughter on her wedding day, which can be used for meeting wedding expenses.

The key features of LIC Kanyadan Policy are:

– It is a whole life insurance policy with no maturity date.

– The policyholder can avail of loan against the policy after 3 years from the date of commencement of the policy.

– The minimum age at entry is 18 years and maximum age is 30 years.

– The minimum sum assured is Rs.1 lakh and maximum sum assured is Rs.5 lakhs.

– Policy term options are 10, 15 or 20 years.

– Premium payment options are yearly, half-yearly or quarterly.

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana (SSY) is a small deposit scheme for the girl child launched by the government of India in 2015. The main objective of this scheme is to provide financial security to the girl child and her family. Under this scheme, parents or guardians can open an account in the name of the girl child with any post office or authorized bank branch. A minimum deposit of Rs. 1,000 and maximum deposit of Rs. 1,50,000 can be made in a financial year. The account matures when the girl child turns 21 years old.

LIC Kanyadan Policy is a special insurance policy for parents who want to secure their daughter’s future financially. Under this policy, parents can take out a life insurance policy on their daughter’s life. The policy maturity benefits are paid out to the daughter when she reaches 18 years of age or gets married (whichever is earlier). In case of death of the parent during the policy term, the daughter will get all the premiums paid till date as well as the sum assured under the policy as maturity benefits.

Both Sukanya Samriddhi Yojana and LIC Kanyadan Policy are good options for parents who want to financially secure their daughter’s future. However, it is important to compare both these options before making a decision.

Comparison of LIC Kanyadan Policy and Sukanya Samriddhi Yojana

When it comes to investing for your daughter’s future, you want to make sure you are getting the best possible return on investment. Two popular options are the LIC Kanyadan Policy and Sukanya Samriddhi Yojana. Here is a detailed comparison of the two policies:

The LIC Kanyadan Policy is a life insurance policy that provides financial protection for your daughter in the event of your death. The policy pays out a lump sum benefit to your daughter, which she can use for any purpose, including education or marriage. The policy also has a maturity value, which will be paid out to your daughter when she reaches the age of 18.

The Sukanya Samriddhi Yojana is a government-sponsored savings scheme that offers attractive interest rates and tax benefits. The money invested in this scheme can be used for your daughter’s education or marriage expenses. The scheme also has a maturity value, which will be paid out to your daughter when she reaches the age of 21.

Both policies offer financial protection and growth potential for your investment. However, there are some key differences between the two policies that you should take into consideration before making a decision.

The LIC Kanyadan Policy has a higher premium than Sukanya Samriddhi Yojana. However, it offers a death benefit and a maturity value, while Sukanya Samriddhi Yojana only offers a maturity value.

LIC K

– Eligibility, Maturity Amount, Tax Benefits, Interest Rates etc.

The Sukanya Samriddhi Yojana is a government-backed savings scheme for the girl child in India. The scheme was launched in 2015 and is currently the most popular investment option for parents looking to save for their daughter’s future. The Sukanya Samriddhi Yojana offers several benefits including tax exemption, interest rate of 7.6% per annum, and a maturity amount of Rs 1 lakh. The scheme also provides an additional income tax benefit of up to Rs 1.5 lakh under section 80C of the Income Tax Act.

The LIC Kanyadan Policy is another government-backed savings scheme for the girl child in India. The scheme was launched in 2006 and provides a death benefit of Rs 1 lakh to the policyholder’s nominee. The policy also offers an annual interest rate of 7.5% and a maturity value of Rs 2 lakhs. The Kanyadan Policy provides an additional income tax benefit of up to Rs 1 lakh under section 80C of the Income Tax Act.

Pros and Cons of Both Policies

There are several key differences between the Sukanya Samriddhi Yojana (SSY) and the LIC Kanyadan Policy. The most important difference is that the SSY is a long-term investment, while the Kanyadan Policy is a life insurance policy.

The SSY offers several advantages over the Kanyadan Policy. First, it offers a much higher rate of return, averaging around 8.6% per year. Second, it allows account holders to make partial withdrawals after the account has been open for at least three years. This can be helpful in cases of financial emergencies. Third, the account can be transferred to another daughter if the account holder has more than one daughter. Fourth, there is no maximum limit on how much can be deposited into the account each year.

However, the SSY also has some drawbacks. First, it requires a minimum deposit of Rs 1,000 per year, which may be difficult for some families to afford. Second, it has a lock-in period of 21 years, meaning that funds cannot be withdrawn until this time period has elapsed. This can be a disadvantage if funds are needed for unexpected expenses before then. Interest earned on the account is taxable at the individual’s marginal tax rate.

The Kanyadan Policy also has both advantages and disadvantages. One advantage is that it provides life insurance coverage for the policyholder’s daughter. In case of her death, the policy benefits will be paid

Conclusion

Deciding on the right savings plan for your daughter’s future can be a daunting task. We hope that this article has provided you with some insight into these two popular plans – Sukanya Samriddhi Yojana and LIC Kanyadan Policy. It is important to weigh the pros and cons of each policy, consider your budget, needs as well as the returns they offer before making a decision. Ultimately, it is up to you to decide which one would be the best choice for your daughter’s future.