Sukanya Samriddhi Scheme vs LIC
“Sukanya Samriddhi Scheme vs LIC Kanyadan Policy – which one is better” is an important query that needs to be answered so that an investor can invest in the scheme which is more suited and helpful for their girl child.
By assuring the safety of the capital and providing a fixed income, both schemes have managed to gain popularity amongst the masses.
What is Sukanya Samriddhi Scheme?
The Sukanya Samriddhi Scheme is a small savings scheme that comes under the “Beti Bachao Beti Padhao” scheme.
It was launched by the central government to build a secured financial corpus and ensure a bright future for the daughters of India.
What is LIC Kanyadan Policy?
LIC Kanyadan Policy is a small savings scheme offered by LIC to protect the financial future of a girl child. It is a customized version of the LIC Jeevan Lakshya Policy, where a father can deposit money for the marriage and education of his daughter at a low premium. The policy offers both protection and savings benefits.
- What is Sukanya Samriddhi Scheme?
- What is LIC Kanyadan Policy?
- Sukanya Samriddhi Scheme vs LIC Kanyadan Policy
Sukanya Samriddhi Scheme vs LIC Kanyadan Policy
1. Type of Scheme
The Sukanya Samriddhi Scheme comes under the Beti Bachao Beti Padhao Scheme and is purely a small savings scheme launched for the education and marriage of a girl child.
The LIC Kanyadan Policy is a modified policy based on the LIC Jeevan Lakshya Policy to financially secure the future of a girl child for later years.
2. Launched By
The Sukanya Samriddhi Scheme was launched by the Government of India, whereas LIC Kanyadan Policy was launched by LIC. Both policies are exclusively meant for a girl child.
3. Account Holder
The girl child is the account holder of the Sukanya Samriddhi Scheme until her marriage, whereas in the LIC Kanyadan Policy, it is the father who is the account holder and not the daughter as he operates the account in her name.
4. Age Criteria
The age criteria of Sukanya Samriddhi Scheme vs LIC Kanyadan Policy are different as the first can be purchased after the birth and before the girl child is 10 years old, and the latter can be purchased when the girl child is at least 1 year old, and the age of her father is between 18 years and 50 years.
5. National Eligibility
The Sukanya Samriddhi Scheme is open only to the citizens of India, whereas outsiders have the option of choosing the LIC Kanyadan Policy for their daughters.
6. Premium Limit
In the Sukanya Samriddhi Scheme vs LIC Kanyadan Policy, the premium limit for the first scheme is INR 1.5 lakhs for a financial year, whereas there is no limit for the latter scheme.
7. Sum Assured Limit
The sum assured in the Sukanya Samriddhi Scheme is limited as it is dependent upon the premium paid, whereas the minimum and maximum limits are INR 1 lakh and no limit, respectively, in LIC Kanyadan Policy.
8. Payment Terms
In Sukanya Samriddhi Scheme, the amount should not be more than INR 1.5 lakhs and has to be paid every fiscal year. The payment term of the LIC Kanyadan Policy is 3 years under the policy term.
9. Account Maturity Tenure
In the Sukanya Samriddhi Scheme, the girl child can handle the account until she is the age of 21 Years or married after 18 years, whereas in LIC Kanyadan Policy, the account maturity tenure is between 13 years – 25 years.
10. Loan Facility
There is not any option for a loan facility in the Sukanya Samriddhi Scheme, whereas in LIC Kanyadan Policy, the policyholder can opt for a loan if the account is active and the premium has been paid for three consecutive years.
11. Compensation Offered (in case of the account holder’s death)
No compensation is offered in case the account holder of the Sukanya Samriddhi Scheme dies. In LIC Kanyadan Policy, if the death of the account holder is natural then the girl child is eligible for immediate payment of INR 5 lakhs, and in case of accidental death, immediate payment of INR 10 lakhs.
If the death is suicidal within 12 months of the policy purchase then 80% of the premium amount is paid by the LIC corporation, along with the surrender value and the tax amount.
By now, you must have got a clear idea about which one amongst the Sukanya Samriddhi Scheme vs LIC Kanyadan Policy will suit the personal needs of your child.
Remember, both schemes provide financial assistance to low- and high-income group parents who want to fulfill their dream of educating or simply marrying their girl child. So, consider their differences well and choose the one you find most beneficial.
Consult an expert advisor to get the right plan