LIC Policy For A Girl Child In India - Best LIC Schemes

Amid evolving times, financial planning for your girl child's education, aspirations, and independence is paramount. Join us as we navigate through LIC's offerings, dissecting features, benefits, and returns. Empower your daughter with a policy tailored to her dreams, ensuring a prosperous journey from childhood to womanhood.

Best LIC Policy for Girl Child: An Overview

Opting for the right insurance scheme provides remedies to safeguard a child from unforeseen challenges. Simultaneously, when choosing a policy for a girl child, it is wise to choose the appropriate insurance company. Nevertheless, a meticulous evaluation is crucial to arrive at the optimal choice. Both current and prospective parents must ensure their children's comprehensive protection by opting for the right child insurance plan.

In the contemporary world, ensuring a financially stable future for children holds paramount importance. With the cost of education and living expenses skyrocketing, it's imperative to amass sufficient funds for a successful academic journey. Concurrently, securing a child's future undertakings through insurance becomes equally vital. Within this article, we will delve into some of the top LIC policies designed for your girl child, gaining insight into the most fitting plans based on the merits of these schemes.

Benefits of LIC Plan for Girl Child

• Covering School Fees for Your Child: In the unfortunate event of a parent's demise, LIC policies designed for girl children can play a pivotal role in covering their educational expenses, ensuring uninterrupted schooling. This provision opens doors to higher education opportunities, even in the absence of a consistent financial source.
• Building a Fund for Higher Education: As university fees continue to rise, securing your child's higher education can be a major concern. Conversely, a LIC plan tailored for your child can help fulfil her aspiration to pursue her chosen field of study. Additionally, it might facilitate international educational pursuits, broadening horizons and knowledge.
• Planning for Marriage: Beyond education, these policies can also serve other life goals, including weddings. With a lump-sum payout upon maturity, these plans offer versatility in funding various endeavours.
• Preserving Capital Amid Volatility: The unpredictable market can erode invested capital. Child plans, equipped with features like Dynamic Fund Allocation and Systematic Transfer Plan, are designed to safeguard investments, mitigating losses and maximising returns.
• Tax Advantages: Notably, the dividends received at maturity and the premiums paid are both exempt from taxation, making these plans financially efficient.
• Extra Perks: These girl child plans offer flexibility, allowing policyholders to choose between survival benefits and lump-sum payouts. While borrowing against the policy is possible, certain time constraints apply before accessing this feature.

Best LIC Schemes for Girl Child

LIC, within India, offers a variety of schemes designed for the betterment of the girl child's future. Parents or guardians are empowered to choose the option that aligns with their preferences and their vision for their child's prospects. Presented below are some of the prominent LIC policies catering to the girl child's needs in India:

LIC Jeevan Tarun:

LIC Jeevan Tarun is a policy accessible to both parents and grandparents, designed to cater to the future requirements of the girl child. This plan is strategically crafted to support her education and secure her future. Addressing the evolving needs of a growing child, the plan begins by focusing on educational needs and subsequently encompasses other related needs.

Main Features of the Scheme:

• Tailored to address educational expenses effectively.
• Incorporates a vital premium waiver feature.
• The maturity amount is exempt from tax under section 10 (10D), while premium payments are eligible for income tax deduction under 80C.
• Flexibility to decide survival benefit contributions between ages 20 and 24, based on your specific requirements.
• Risk coverage for the girl child begins two years from policy initiation or when she turns eight, whichever comes earlier.
• In the unfortunate event of a parent's demise, the girl child can receive either 105% of all premiums paid or 125% of the total insured amount.
• The policy offers a minimum assured sum of Rs. 75,000 with no upper limit.

Eligibility:

• Minimum entry age: 90 days to 12 years old.
• Premium payment term: Minimum 8 years and maximum 20 years from entry age. For a 5-year-old child, it is 15 years.
• Policy term: 25 years from entry age, reduced to 20 years for a 5-year-old child.

LIC's Aadhar Stamp

LIC's Aadhar Stambh policy is a remarkable choice for parents, allowing them to nominate their daughters as beneficiaries. This plan effectively combines insurance coverage with savings, ensuring a life free from worries.

Main Features:

• Minimum assured sum of Rs. 75,000 and a maximum of Rs. 3 lakhs.
• In the case of the policyholder's death, the plan pays out the basic sum insured, 10 times the cumulative premium, or 105% of all premiums paid, whichever is higher.
• Offers avenues for additional benefits, making it an appealing choice for girls.

Eligibility:

Entry age ranges from 8 to 55 years old, with the maximum age capped at 55.

LIC New Children's Money Back Plan

This plan is a specialised non-linked money-back scheme designed to cater to the specific needs of a girl child. It offers a dual benefit of savings and investment opportunities, providing effective solutions to alleviate financial pressures. Simultaneously, this LIC insurance for children encompasses risk coverage, necessitating policyholders to take precautions for a worry-free journey.

Main Features:

The plan enables refunds on higher premium amounts, facilitating both cost savings and enjoyment of plan benefits.

• Under this concept, a guaranteed money amount of 20% is provided to the girl child at ages 18, 20, and 22.
• Recognised as one of the premier LIC plans for a girl child, it empowers parents to secure a promising future for their daughters through its multifaceted attributes.
• Dissatisfied customers have a 15-day window to return the policy.
• The plan entails a minimum sum assured of Rs. 1 lakh with no upper limit.
• A grace period applies to monthly premium payments, offering 15 days for such payments and 30 days for other modes. Failure to make payments during this period results in policy cancellation.
• After three years, the policy can be surrendered with full premium payments up to that point.
• In the case of the sudden demise of the insured individual, the death benefit is conferred upon the nominee or dependent.

Eligibility:

• No specified minimum entry age, with a maximum entry age of 12 years.
• Premium payment terms extend to 7 or 10 years.

LIC Jeevan Labh:

LIC Jeevan Labh stands as another excellent policy option for securing your girl child's future. Here are the central features and eligibility criteria for this policy:

Main Features:

• An optimal LIC insurance for girls, as it extends coverage to them upon reaching eight years of age.
• The plan includes a minimum sum insured of Rs. 2 lakhs without any upper limit.
• Emergency loans are accessible through this plan. Policyholders have the choice to receive the maturity benefit either in a lump sum or as equal instalments.
• The plan is available for durations of 16 years, 21 years, and 25 years, offering enhanced benefits.
• Five rider benefits can be chosen based on individual preferences, including accidental benefit, premium waiver, term assurance, critical illness, and accidental death and disability riders.
• In the event of the policyholder's death, the beneficiary is entitled to the basic sum insured or 7 times the accumulated premiums under this plan.

Eligibility:

• Minimum age of entry: 8 years.
• Maximum Premium Paying Term: 50 years - 25 years
• Premium Paying Term - 54 years - 21 years
• Premium Paying Term - 59 years - 16 years

Conclusion

In conclusion, navigating the realm of LIC policies for your girl child's future is a crucial decision. By choosing wisely, you're ensuring her financial security and enabling her dreams to take flight. The right policy can be a steadfast companion throughout her journey from education to pursuing her aspirations. Make an informed choice to empower her with the resources she deserves for a prosperous life ahead.

FAQs

1. How can I purchase a LIC policy for a girl child?

Every child plan offered by LIC can be acquired through both online and offline channels. Via the official LIC website, individuals can select their preferred policy and provide the necessary information using the online method. Premium payments can be made online using credit or debit cards, net banking, and more. Alternatively, the policy can be obtained offline by visiting the nearest LIC branch office or through brokers and agents.

2. What does the LIC girl child policy entail?

This policy is an insurance plan designed to provide financial security for a child's aspirations and goals. It combines investment and insurance aspects, offering a way to invest in significant life goals like higher education and marriage.

3. Is the maturity benefit from a LIC girl child policy taxable?

The entire sum received upon maturity, including the bonus amount, from a LIC girl child policy is tax-free. This tax benefit is in accordance with Section 10(10D) of the Income Tax Act of 1969.

4. Why is LIC insurance suitable for children?

LIC's child plan is an endowment insurance contract that not only offers a death benefit for the family but also ensures payouts upon maturity. The accumulated sum, along with bonuses, can be utilised for children's further education expenses.

5. Which LIC insurance is recommended for girls?

Parents can choose the option that aligns with their Child's needs and their own preferences.

6. Is PPF better than LIC?

PPF and LIC policies serve different purposes. PPFs are savings-oriented, while LIC policies provide insurance coverage. PPFs are primarily used for retirement and long-term investment, and they are open to anyone.

7. How effective are LIC Jeevan Tarun policies?

LIC Jeevan Tarun policies are thoughtfully designed, with features like bonus eligibility, fund growth assistance, and premium waiver benefits in case the proposer passes away during premium payment periods. These policies provide robust benefits and security for the child's future.

8. What is LIC Aadhaar Stambh?

LIC Aadhaar Stambh is a plan that combines savings and protection. It's available only to male policyholders with UIDAI-issued Aadhaar cards. This loyalty-based plan does not require medical exams and caters to individuals with healthy lifestyles.

9. Is opting for Jeevan Umang advisable?

Jeevan Umang offers comprehensive coverage for 100 years or the insured's entire life. It provides annual refunds of 8% of the sum assured upon survival until the policy term ends. This plan comes with a substantial sum assured.