Sukanya Samriddhi Yojana Versus LIC Kanyadan Policy

Sukanya Samriddhi Yojna and LIC Kanyadan Policy are schemes launched to provide relief to parents bearing girl child. The motive of these schemes is to serve the wishes of parents who want to save money for the higher education and marriage of their girl child through small savings.

It is beneficial for both people with low income and high income. The two noticeable things about the schemes are that:

It provides fixed income
It assures the safety of the capital.

What Is Sukanya Samriddhi Yojna?

The central Government for the bright future of the daughters launched Sukanya Samriddhi Yojna. It is a small savings scheme under the Beti Bachao Beti Padhao scheme. It offers the best interest rate on small savings scheme.

Guidelines For Sukanya Samriddhi Scheme

The account can be opened at any of the post offices or banks branch that provides this facility.
Two accounts cannot be opened for a single girl child.
After the age of 18 years, a maximum of 50% of the amount can be withdrawn for the higher studies of the girl child.
The account can be opened in the name of the girl child before the age of 10 years.
Documents like birth certificate, address of girl and guardian, proof of identity are verified and the same are to be submitted at the post office or bank.
One can open an account with a minimum of Rs. 250
Sukanya Samriddhi Yojna's account can be transferred anywhere within the country (India).
In case of death of the girl child:
1. The account can be closed showing the death certificate and the amount deposited can be given to the guardian along with interest.

2. The account can be closed in 5 years in case of a life-threatening disease.

LIC Kanyadan Policy

LIC Kanyadan policy is another version of the Jeevan Lakshya Plan. The insurance agents have invented this name to sell the policy by the name of LIC Kanyadan Policy.

LIC Kanyadan Planis a plan that is beneficial for the future of a girl child. It is a saving scheme that helps a father deposit money at a low premium for education and marriage of the girl child. All the account activity is functioned by the father. In this, the girl child does not have access to the account. The plan provides the father's post-death benefits to the daughter. It helps the family and especially the girl child in hard times.

Guidelines for LIC Kanyadan Policy

It protects the future of a female child financially and moreover, she can spend her life independently.
The plan is offered by the Life Insurance Corporation.
The father is eligible to buy the policy only in his name. The policy can not be bought by the name of the daughter.
The premium payment time is limited.

Differences Between Sukanya Samriddhi Yojna and LIC Kanyadan Policy

ssy vs kanyadan policy

Criteria	Sukanya Samriddhi Yojna	LIC Kanyadan Policy
Age Eligibility	The scheme can be bought after the birth of a girl child under her name and before she is 10 years old.	Father - 18 Years - 50 Years Daughter - At least 1 Year
Nationality Eligibility	Only for Indian Citizens	Outsiders can also buy.
Account Holder	The girl child is the holder of the savings scheme account until her marriage.	Father of girl child
Sum Assured Limit	Limited as per premium paid.	Minimum- 1 Lakh Maximum - No limit.
Premium Limit	1.5 Lakhs in one financial year.	No limit
Account Maturity Tenure	A girl child can operate the account until the age of 21 or until she is married after 18 years of age.	13 Years - 25 Years
Premium Payment Term	It is to be paid every financial year and not more than 1.5 Lakhs.	3 years less than the policy term.
Loan Facility	No loan can be availed over the scheme.	If the account holder pays a premium for 3 consecutive years and the account is active then a loan can be availed.
Type of Scheme	It is a pure savings scheme launched for the girl children's education and marriage purpose.	It has a mixed feature of the Jeevan Lakshya Policy.
In Case Of Death	In case the girl child's (Account holder) death, the sum amount is paid to the parents at a normal interest.	In the case of the death of the father, the premium is waived off.
Compensation Offered By Scheme ( If the Account Holder Dies)	No such amount is paid.	Accidental demise - Immediate payment of 10 Lakhs Natural demise - Immediate payment of 5 Lakhs Suicide within 12 months from initiation of policy - 80% of the premiums are paid by the corporation except for the surrender value and the tax amount.

Conclusion

Schemes like Sukanya Samriddhi Yojna and LIC Kanyadan Yojna have brought great help to the Indian parents. Birth of a girl brings responsibilities along with happiness. The benefits provided by both the schemes have been mentioned in a crystal clear way.

Written By : Naval Goel

Last Updated : September, 2019

Naval Goel is the CEO & founder of PolicyX.com. Naval has an expertise in the insurance sector and has professional experience of more than a decade in the Industry and has worked in companies like AIG, New York doing valuation of insurance subsidiaries. He is also an Associate Member of the Indian Institute of Insurance, Pune. He has been authorized by IRDAI to act as a Principal Officer of PolicyX.com Insurance Web Aggregator.