It is impossible to overestimate the significance of preparing the next generation of leaders for this quickly developing country. Understanding how important it is to support girls’ dreams, Life Insurance Corporation of India (LIC) provides a selection of policies designed with their financial security and future goals in mind. This article examines the options available to secure the future of Indian girl children by delving into the LIC Policy for Girl Child in India.
Benefits of LIC Policy for Girl Child in India
- School Fees: If a parent dies, the girl child’s LIC plans can assist in covering her educational expenses and ensuring she completes her education. This enables the girl child to benefit from improved educational opportunities even in the absence of the primary breadwinner.
- Funding higher education: The cost of attending college and university is rising quickly, so parents may be concerned about giving their kids the greatest higher education possible. A LIC policy, however, might help the girl child achieve her goals and follow her chosen path. Traveling overseas for improved exposure and education is another option for using the returns from these plans.
- Other future expenses: A plan from LIC India could help with other costs as well, like a wedding or any unexpected medical bills, in addition to education. You can use the lump sum that is given out when the plan matures to achieve several other long-term goals.
- Beat Inflation: Capital erosion could result from persistent market volatility. To guarantee that their daughter will be financially secure and self-sufficient in the future, one can accumulate a corpus over time.
How to Purchase LIC Policy for Girl Child in India?
Online: By going to the official LIC website, you can purchase any of the aforementioned child plans offered by LIC life insurance. After choosing the desired policy, you can fill in the required fields with your name, age, birthdate, mobile number, and other information. Additionally, the LIC Online Premium Payment Portal accepts online payments for premiums.
How Can LIC Policy Benefit Your Daughter?
Let’s say you have invested in your 12-year-old daughter through the LIC’s New Children Moneyback Plan. Your daughter will be covered by the policy for the next 13 years at a premium of just Rs. 7,916 per month if the policy and premium paying term are both 13 years. Additionally, when she turns 18, 20, and 22 years old, she will get Rs. 2 Lacs, which she can use to cover her education costs. In addition, she would get a maturity payment of Rs. 4 Lacs, which she could use to cover any unforeseen costs or continue her education.
Best LIC Policy for Girl Child in India
LIC Jeevan Tarun: Parents and grandparents can apply for LIC Jeevan Tarun, a policy that is intended to meet the needs of a girl child in the future. This carefully thought-out plan will help her pursue her education and safeguard her future. To meet the changing needs of a developing child, the plan starts with educational needs and then moves on to other related needs.
- Main Features of the Scheme:
- Includes a crucial premium waiver function.
- Designed to successfully handle the costs of education.
- Under section 10(10D), the maturity amount is tax-free, and under section 80C, premium payments are deductible from income.
- flexibility to choose how much of your survival benefit to contribute between the ages of 20 and 24 depending on your needs.
- The girl child’s risk coverage starts two years after the policy’s inception or on her eighteenth birthday, whichever comes first.
- Entry-level requirements: 90 days to 12 years old.
- Terms of premium payment: 8 years minimum, 20 years maximum, starting at entry age. It is fifteen years for a child five years old.
- Policy term: twenty years from the date of entry, if the child is five years old.
LIC Jeevan Labh: Another great option for securing the future of your girl child is LIC Jeevan Labh. The salient characteristics and qualifying requirements of this policy are as follows:
- Main Features:
- The best LIC insurance for girls because it covers them up until the age of eight.
- The plan has an upper limitless minimum sum insured of Rs. 2 lakhs.
- This plan provides access to emergency loans. The maturity benefit can be paid to policyholders in equal installments or as a lump sum.
- The plan offers increased benefits and is available for 16 years, 21 years, and 25 years.
- Eight is the minimum entry age.
- Maximum Period for Paying Premiums: 25 years to 50 years
- Term of Premium Payment: 54 Years – 21 Years
- Term of Premium Payment: 59 Years – 16 Years
LIC New Children’s Money Back Plan: LIC New Children’s Money Back Plan is a unique non-linked money-back program created to meet the unique requirements of a young girl. It provides practical ways to ease financial strains by giving savings and investment opportunities in tandem. In addition, this children’s LIC insurance covers risk, so policyholders should prepare for worry-free travel.
- Main Features:
- According to this idea, the girl child receives a guaranteed financial amount of 20% when she is 18, 20, and 22 years old.
- Regarded as one of the best LIC plans for a girl child, its many features enable parents to provide a bright future for their daughters.
- Customers who are not happy have 15 days to return the policy.
- The plan includes an assured minimum amount of Rs. 1 lakh, with no cap on the amount.
- Monthly premium payments are subject to a grace period, which offers 15 days for these payments and 30 days for other modes. If payments are not made during this time, the policy will be canceled.
- There is no minimum requirement for entry, and the maximum age is 12 years old.
- The duration of premium payments is seven or ten years.
LIC’s Aadhaar Stambh: Parents have an amazing option with LIC’s Aadhaar Stambh policy: they can designate their daughters as beneficiaries. This plan efficiently blends savings and insurance protection, guaranteeing a worry-free existence.
- Main Features:
- A minimum of Rs. 75,000 and a maximum of Rs. 3 lakhs are guaranteed.
- The plan pays out the basic sum insured, ten times the cumulative premium, or 105% of all premiums paid, whichever is higher, in the event of the policyholder’s death.
- provides opportunities for extra benefits, which makes it a desirable option for females.
- Eligibility: The entry age is 8 to 55 years old, with a 55-year-old maximum.
FAQ of LIC Policy for Girl Child in India
Q1. Is there a tax on the maturity benefit from a LIC Policy for Girl Child in India?
An LIC girl child policy’s entire maturity payout, including the bonus amount, is tax-free. The Income Tax Act of 1969’s Section 10(10D) is followed by this tax benefit.
Q2. LIC Aadhaar Stambh: What is it?
A plan that combines protection and savings is called LIC Aadhaar Stambh. Only male policyholders with Aadhaar cards issued by UIDAI are eligible for it. This loyalty-based plan is designed for people who lead healthy lifestyles and does not require medical exams.
Q3. Is PPF superior to LIC Policy for Girl Child in India?
Policies under PPF and LIC have distinct functions. PPFs focus on savings, whereas LIC policies offer insurance protection. PPFs are accessible to all individuals and are mainly used for long-term and retirement investments.
Q4. What is involved in the LIC Policy for Girl Child in India?
This insurance plan is intended to give children the financial stability they need to pursue their dreams. It provides a means of investing in important life goals like marriage and higher education by combining aspects of insurance and investing.
Q5. Does the LIC policy allow me to designate my girl child as the nominee?
In the LIC policy, your girl child may be named as the nominee, yes. In the event of the policyholder’s passing, the nominee will be the one to receive the policy benefits.