From education to marriage expenses, the best LIC plans for a girl child cover various aspects of her life and offer substantial benefits, guaranteed returns, and the flexibility to customise the policy according to specific requirements. In this article, we will explore the best LIC plans for a girl child that serve as invaluable assets in securing their bright and prosperous future and fostering financial independence and empowerment.
Reasons to Purchase an LIC Policy for Your Girl Child
It is essential to secure your daughter’s future in this fast-paced world so that she does not suffer from any financial crisis and achieve a successful academic life. This is where the LIC plans for girl child come into the picture - these plans can keep your daughter financially secure in case of any unfortunate event.
Given below are the major benefits that you can get when you purchase the Best LIC plan for girl child in India:
- Paying School Fees: With the help of the LIC scheme for a girl child, one can easily pay off their daughter’s school fees and ensure that she gets the best-in-class education even in the parent’s absence.
- Creating Corpus for Her Further Education: With the rising higher education fees and university tuition charges, providing for your daughter’s higher study can prove to be a major challenge. With an LIC scheme for a girl child, however, you can help your daughter realise her ambitions which can even include higher studies abroad.
- Marital Plans: With an LIC plan for a girl child, you can additionally support your daughter’s marriage along with education. This is because such a plan provides a lump sum payout on maturity which can be used to fund different financial goals.
- Offers Consistency during Inflation: The consistent market volatility can lead to capital erosion. However, with the best LIC policy for a girl child, you can build a corpus with time to ensure that your daughter remains financially stable and leads an independent life.
- Handling Other Future Expenses: Besides education and wedding, an LIC plan for a girl child also helps in providing funds during a medical emergency. The lump sum paid at the time of maturity can be used to handle life goals.
Most Sought-After LIC Plans for Girl Child
Here are the best LIC policies for a girl child -
LIC Jeevan Tarun Plan for Girl Child
LIC Jeevan Tarun is a non-linked, individual, and participating life assurance plan for your daughter. It offers an attractive fusion of protection and saving features. This LIC plan for a girl child, specially designed to meet their educational and other needs, pays out survival benefits in the age bracket of 20 to 24 years and a maturity benefit at the age of 25 years.
As a flexible plan, LIC Jeevan Tarun enables you to choose the proportion of Survival benefits to be availed during the tenure as per the following 4 options -
||No survival benefit
||100% of the sum assured is paid
||5% of the sum assured is paid annually for 5 years
||75% of the sum assured is paid
||10% of the sum assured is paid annually for 5 years
||50% of the sum assured is paid
||15% of the sum assured is paid annually for 5 years
||25% of the sum assured is paid
The following are the salient features of this LIC scheme for a girl child -
- Death Benefit: The death benefit is paid during the policy tenure (once the premium is paid in full) under the following conditions:
- On Death before the Risk Coverage Date: If the life assured passes away before the coverage date, the provider refunds the premium paid during the period, excluding taxes, extra premium, and premium for riders.
- On Death after the Risk Coverage Date: At the time of death under such circumstances, the girl child is paid the sum assured on death and bestowed Simple Reversionary Bonuses and Final Additional Bonus. The sum assured on death is 7x higher than the annual premium paid or 125% of the sum assured.
- Survival Benefit: A set percentage of the sum assured is paid annually after the daughter completes 20 years of age. The survival benefit is paid for the next 4 policy years thereafter.
- Maturity Benefit: If the life assured outlives the policy tenure, they are paid with Sum Assured on Maturity along with additional Simple Reversionary Bonuses and Final Extra Bonus (if applicable).
- Participation in Profits: This LIC plan for girl child participates in the profit of the life insurance Corporation and earns Simple Reversionary Incentives. Another bonus paid is the Final Additional Bonus that is declared at the time of death of the life assured or maturity of the policy.
- Premium Waiver Benefit Rider
- Minimum Entry Age: 90 days
- Maximum Entry Age: 12 years
- Minimum or Maximum Maturity Age: 25 years
Note: The minimum sum assured is INR 75,000 while there is no cap on the maximum sum assured.
LIC New Children’s Money Back Plan
This LIC scheme for a girl child is a non-linked, individual, and participating Life Assurance money back policy. It is specifically designed to meet your daughter’s academic, marital, and other requirements by paying out Survival Benefits. Additionally, the LIC New Children’s Money Back Plan offers risk cover for your daughter’s life during the policy tenure.
Listed below are the major benefits of this LIC policy for a girl child -
- Death Benefit: Upon the death of the life assured during the policy tenure, the beneficiary is paid a death benefit. Here are the conditions under which the benefit is paid:
- If the Death Happens Before the Risk Coverage Date: The payout is in the form of an amount that is equal to the overall amount of premium (s) paid, excluding the taxes and additional premium and the premium for riders.
- If the Demise Happens After the Risk Coverage Date: In such a case, the beneficiary is paid as the Sum Assured on Death with accrued Simple Reversionary Bonus and Final Extra Incentive. This Sum Assured on Death is 7 times higher than the basic sum assured or not less than 105% of the total premium paid till the date of death.
- Survival Benefit: If the life assured survives on every policy anniversary after the completion of 18 years of age, 20 years of age, and 22 years of age, 20% of the basic sum assured is paid to them on every applicable occasion.
- Maturity Benefit: If the life assured survives the policy tenure, a Sum Assured on Maturity is paid out along with the applicable Simple Reversionary Bonus and Final Extra Incentive. The sum assured on maturity is usually 40% of the basic sum assured.
- Part in the Profit: This LIC plan for girl child participates in the profit of the Life Insurance Corporation and earns Simple Reversionary Incentives. Another incentive paid is the Final Additional Bonus which is declared at the time of death of the life assured or maturity of the policy.
- Minimum Entry Age: 0 years
- Maximum Entry Age: 12 years
- Minimum/Maximum Maturity Age: 25 years
Note: The minimum basic sum assured for life assured is INR 100,000. There is no maximum cap on the sum assured.
This LIC scheme for a girl child is a unit-linked, non-participating, individual life assurance plan to financially secure your daughter’s future in case of any unfortunate circumstances. Under the LIC SIIP plan, a portion of the premium is directed towards market investment in funds with varying risk factors, while the remaining portion goes toward life insurance.
At the time of policy maturity, the life assured will receive maturity benefits that they can use for their higher education or fulfilling ambitions. This LIC plan for a girl child also provides assured additions to help the life assured upkeep their regular lifestyle. With this LIC scheme for a girl child, one can also avail of the option of including LIC’s Linked Accidental Death Benefit add-on for optimised coverage.
Another aspect of this LIC scheme for a girl child is that it also possesses a partial withdrawal benefit that provides the liquidity option after the 5th policy year, which can help your daughter take care of financial emergencies, if any.
Check out the benefits available with the LIC SIIP scheme -
- Death Benefit: In case the life assured passes away before the risk coverage date begins, an amount is paid to the beneficiary that is equivalent to the unit fund value. However, if the life assured passes away after the risk coverage date begins, the death benefit is paid in the following manner:
- Basic sum assured reduced by partial withdrawals that are made during the two years that immediately precede the date of death.
- Unit fund value
- 105% of the total premiums that are received up to the date of demise and are reduced by partial withdrawals (if any).
- Maturity Benefit: If the life assured survives the policy period and has paid all the premiums, an amount that is equivalent to the Unit Fund Value is paid.
- Refund of Mortality Charges: When the life assured survives the policy tenure and all the due premiums are paid, an amount that is equivalent to the total amount of mortality charges reduced in the life insurance cover is paid along with the maturity benefit.
- Minimum Entry Age: 90 days
- Maximum Entry Age: 65 years
LIC Jeevan Labh
This is yet another great investment option with respect to LIC plans for a girl child. Under this plan, your daughter will get coverage once she turns 8. The minimum sum assured is INR 2,00,000, with no cap on the maximum limit. Under the LIC Jeevan Labh plan, the life assured can take out a loan during financial emergencies.
This plan is available for 16 years, 21 years, and 25 years.
Listed below are the key benefits and features of this LIC policy for girl child:
- Death Benefit: This benefit is payable at the time of the demise of the life assured during the policy tenure. It is paid along with applicable Simple Reversionary Incentives and Final Additional Bonus. The sum assured on death is usually 7 times higher than the yearly premium paid or at least 105% of the total premiums paid till the date of life insured’s death.
- Maturity Benefit: If the life assured survives the policy tenure, they are paid a Sum Assured on Maturity with applicable Simple Reversionary bonus and final additional bonus. This maturity benefit under the LIC plan for a girl child is equivalent to the basic sum assured.
- Participation in Profits: This LIC policy for a girl child takes part in the profits earned by the Life Insurance Corporation of India. As a result, the policyholder is entitled to earn a Simple Reversionary Bonus that is declared according to the Corporation’s experience. The additional bonus is also declared within the policy tenure when there is a claim against the policy either because of death or due to the maturity of the plan.
- Riders: With LIC Jeevan Labh plan, you have the liberty to opt for rider benefits as well. The major riders available under this LIC plan for a girl child are -
- LIC’s Accidental Death and Disability Benefit - The policyholder can opt for this rider within the premium paying tenure, when the base plan for the premium payment is at least 5 years of age. If the life assured opts for the accidental death benefit, the beneficiary will be paid the Accidents Benefit Sum Assured in a lump sum in case the former passes away due to an accident. In case of an accidental disability (within 180 days from the date of the accident), an amount equivalent to the Accident Benefit Sum Assured is paid in equal monthly instalments for 10 years and the future premiums are waived.
- LIC’s Accident Benefit Rider - The benefit of this rider is available only during the premium payment tenure. Under this rider, the Accident Benefit Sum Assured is paid in a lump sum.
- LIC’s New Term Assurance Rider - This rider is available at the time of policy inception, with coverage available throughout the policy tenure. Under this rider, an amount that is equivalent to the Term Assurance Rider Sum Assured is paid at the death of the life assured.
- LIC’s New Critical Illness Rider - This rider can be availed at the time of policy inception itself. In case the policyholder chooses this rider, a Critical Illness Sum Assured would be paid on the first diagnosis of any of the 15 major critical illnesses stated by the LIC.
- LIC’s Premium Waiver Benefit Rider - This rider benefit can be opted by the policyholder at any point of time coinciding with the plan’s anniversary within the premium paying term.
- Minimum Age at Entry - 8 years
- Maximum Age at Entry - 59 years for a policy tenure of 16 years; 54 years for policy tenure of 21 years; 50 years for policy tenure of 25 years
- Maximum Age at Maturity - 75 years
Note: The minimum basic sum assured under this LIC policy for your girl child is INR 2,00,000. No cap is applied to the maximum basic sum assured amount.
Which LIC Scheme for Girl Child is the Best?
The top LIC policies for the girl children discussed above are designed to ensure that your daughter remains financially secure even in dire situations without being required to compromise on their ambitions.
With respect to the question of which one is the best, it’s important to understand that the best plan for you would depend on your specific requirements, financial conditions, planning, and more. Thus, when looking out for the best LIC policy for the girl child, make sure to take your daughter’s interests and future plans into consideration when making a choice. Understand the payout options, the benefits, and the rider benefits offered by the plan before making a decision.
To know more about LIC schemes for a girl child, read the following FAQ section.
Frequently Asked Questions