Sukanya Samriddhi Yojana Versus LIC Kanyadan Policy

Parents of a girl child who want to protect the future of their daughter with financial security must turn to policies like Sukanya Samriddhi Yojana and LIC Kanyadan Policy for best benefits. Let’s find out more!

Every parent wants to give their child the best of everything they can, like best education, best facilities, best career opportunities etc.  However, one thing that might prevent them from doing so is the financial crisis. So, to avoid a monetary crisis, parents should invest in plans from the birth of the child. Some best policies that parents can invest on in this regard are Sukanya Samriddhi Yojana and LIC Kanyadan Policy. Both these plans support the girl child well and fulfills her aims and aspirations. Let us understand them better in this post.

Sukanya Samriddhi Yojana

Sukanya Samridhi Yojana is a central government scheme launched in 2015 to offer a bright future to your daughters. This policy comes under the government campaign of ‘Beti Bachao Beti Padhao’ and supports parents to make small savings at best Sukanya Samriddhi Yojana interest rate.  The aim of the plan is to allow parents to create a financial corpus to protect the future of their daughter. Let us get more Sukanya Samriddhi Yojana details below.

8 Features of Sukanya Samriddhi Yojana

Below are some SSY features to give you good idea about the plan:

1. SSY is a central government policy launched to support girl child in India
2. Parents can open an SSY account anytime between birth till 10 years of the child
3. Policy term of SSY is till the girl turns 21 years or till the girl is married anytime after 18 years (whichever is earlier)
4. The rate of interest offered by SSY scheme annually is 7.6 %
5. The parents can avail tax deductions under Income Tax section 80C for Sukanya Samriddhi Yojana
6. The amount that can be deposited is min. INR 250 to Max. INR 1.5 lakh per annum
7. The account of SSY is opened in the name of the girl child by the parents/guardian
8. Per family 2 SSY accounts are allowed to be opened

5 Benefits of Sukanya Samriddhi Yojana

Below are some Sukanya Samriddhi Yojana benefits that can be incurred under the scheme:

1. High interest rate
2. Tax benefits
3. Guaranteed benefits at Maturity
4. Lock-in Period to ensure the safety of the deposit
5. Partial withdrawal facility (if necessary for child’s education etc.)

How to Open a SSY Account?

To open a SSY Scheme account, you can visit any bank or post office across India. You have to furnish documents such as duly filled form of account opening, documents complying with KYC of parent/legal guardian, birth certificate of the girl child etc.

Here are the steps:

• Visit nearest bank or post office
• Duly fill the SSY Account opening form
• Take all the necessary documents with you along with photographs
• Pay the deposit amount (min. INR 250, max. INR 1.5 lakh)
• You may use Netbanking to deposit automatic credit to an SSY Account. However, you have to a give a standing instruction at the branch office regarding the same

LIC Kanyadan Policy

Kanyadan Policy LIC is a customized edition of another policy offered by Life Insurance Corporation (LIC), which is LIC Jeevan Lakshya Policy. The name has been changed to lure parents of a girl child to invest in the plan and secure the future of their daughters.

8 Features of LIC Kanyadan Policy

1. It is a combination of savings and protection plan
2. It allows monetary security to girl child
3. The plan allow the policyholder to receive lump sum amount at maturity
4. The plan also allow waiver of premium option
5. In case the policyholder dies in an accident, the plan offers INR 10 lakh
6. In case the policyholder dies naturally, the plan pays INR 5 lakh
7. INR 50,000 is paid yearly till the maturity of the policy and full amount at maturity
8. The plan is available for both Indian citizens and NRIs

How to Open A LIC Kanyadan Policy Account?

Below are the steps to follow:

• Go to the official website of LIC
• Choose the ‘LIC Kanyadan Policy’
• Now, duly fill the online form with all details
• Submit the form along with required documents
• The insurer will verify your documents and inform you via email

Read More: Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana (SSY) VS. LIC Kanyadan Policy

Here are the basic differences between the two plans to help you decide better on the one to invest:

Summing Up

Sukanya Samriddhi Yojana and LIC Kanyadan Policy are two plans to support parents of girls to secure their future financially.  Both are very effective plans which come with a similar objective of securing the future of your daughter.

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