LIC Kanyadan Policy vs Sukanya Samriddhi Yojana – Know features, benefits and account opening process

Every parent wants to give their child the best of everything they can, like best education, best facilities, best career opportunities etc.  However, one thing that might prevent them from doing so is the financial crisis. So, to avoid a monetary crisis, parents should look for investment plans from the birth of the child. Some best policies that parents can invest on in this regard are Sukanya Samriddhi Yojana and LIC Kanyadan Policy. Both these plans support the girl child well and fulfills her aims and aspirations. Let us understand them better in this post.

What is Sukanya Samriddhi Yojana?

Sukanya Samridhi Yojana is a central government scheme launched in 2015 to offer a bright future to your daughters. This policy comes under the government campaign of ‘Beti Bachao Beti Padhao’ and supports parents to make small savings at best Sukanya Samriddhi Yojana interest rate.  The aim of the plan is to allow parents to create a financial corpus to protect the future of their daughter. Let us get more Sukanya Samriddhi Yojana details below.

8 Features of Sukanya Samriddhi Yojana

Below are some SSY features to give you good idea about the plan:

1. SSY is a central government policy launched to support girl child in India
2. Parents can open an SSY account anytime between birth till 10 years of the child
3. Policy term of SSY is till the girl turns 21 years or till the girl is married anytime after 18 years (whichever is earlier)
4. The rate of interest offered by SSY scheme annually is 7.6 %
5. The parents can avail tax deductions under Income Tax section 80C for Sukanya Samriddhi Yojana
6. The amount that can be deposited is min. INR 250 to Max. INR 1.5 lakh per annum
7. The account of SSY is opened in the name of the girl child by the parents/guardian
8. Per family 2 SSY accounts are allowed to be opened

5 Benefits of Sukanya Samriddhi Yojana

Below are some Sukanya Samriddhi Yojana benefits that can be incurred under the scheme:

1. High interest rate
2. Tax benefits
3. Guaranteed benefits at Maturity
4. Lock-in Period to ensure the safety of the deposit
5. Partial withdrawal facility (if necessary for child’s education etc.)

How to Open an Sukanya Samriddhi Yojana (SSY) Account in 2025?

To open a SSY Scheme account, you can visit any bank or post office across India. You have to furnish documents such as duly filled form of account opening, documents complying with KYC of parent/legal guardian, birth certificate of the girl child etc.

Here are the steps:

• Visit nearest bank or post office
• Duly fill the SSY Account opening form
• Take all the necessary documents with you along with photographs
• Pay the deposit amount (min. INR 250, max. INR 1.5 lakh)
• You may use Netbanking to deposit automatic credit to an SSY Account. However, you have to a give a standing instruction at the branch office regarding the same

What is LIC Kanyadan Policy?

Kanyadan Policy LIC is a customized edition of another policy offered by Life Insurance Corporation (LIC), which is LIC Jeevan Lakshya Policy. The name has been changed to lure parents of a girl child to invest in the plan and secure the future of their daughters.

8 Features of LIC Kanyadan Policy

1. It is a combination of savings and protection plan
2. It allows monetary security to girl child
3. The plan allow the policyholder to receive lump sum amount at maturity
4. The plan also allow waiver of premium option
5. In case the policyholder dies in an accident, the plan offers INR 10 lakh
6. In case the policyholder dies naturally, the plan pays INR 5 lakh
7. INR 50,000 is paid yearly till the maturity of the policy and full amount at maturity
8. The plan is available for both Indian citizens and NRIs

How to Open A LIC Kanyadan Policy Account in 2025?

Below are the steps to follow:

• Go to the official website of LIC
• Choose the ‘LIC Kanyadan Policy’
• Now, duly fill the online form with all details
• Submit the form along with required documents
• The insurer will verify your documents and inform you via email

Sukanya Samriddhi Yojana vs LIC Kanyadan Policy

Here are the basic differences between the two plans LIC kanyadan policy and sukanya samriddhi yojana of LIC to help you decide better on the one to invest:

Parameter	Sukanya Samriddhi Yojana (SSY)	LIC Kanyadan Policy
Account Owner	The girl child on whose name the account is opened	Father/parent of girl child
Age of Account Owner	The policy can be bought after the birth of the  girl child till she attains 10 years of age	Father’s age – Between 18-50 years Daughter’s age  – at least 1 year
Type of scheme/Policy	Savings scheme launched by government of India	Updated version of Jeevan Lakshya Policy of LIC
Nationality	Indian citizens are eligible	Indian citizens and NRIs
Sum Assured	As per premium paid	Min. INR 1 lakh, Max No Limit
Premium payment	Max. INR 1.5 lakh per financial year	No Limit
Loan facility	Not available	Available after 3 years of the plan
Tenure of policy	Until the girl turns 21 years of age or until her marriage after 18 years of age	Between 13 – 25 years of the girl child
Premium payment term	Can be paid every financial year (up to 1.5 lakh)	3 years under the term of the policy
Compensation Offered in case of death of account holder	No compensation paid	INR 10 lakh on accidental death INR 5 lakh on natural death