Best LIC Policy for Girl Child: What are Its Features?

Best LIC Policy for Girl Child: An Overview

Choosing the correct insurance plan gives solutions to shield a child from unanticipated difficulties. Simultaneously, while selecting a policy for a girl child, it is prudent to select the correct insurance firm. However, it is essential to carefully assess them in order to make the best selection. Parents as well as those who will become parents in the coming time should ensure that their children are adequately protected by selecting the appropriate form of insurance plan.

In today's world, it is critical to ensure that children have a financially secure future. Because the expense of tuition and living is increasing at an exponential rate, enough money must be saved to ensure a successful academic life. At the same time, it is important to have insurance for your child to secure her future endeavors. In this article, we shall explore some of the best LIC policies for your girl child and understand the most suitable plans for you as per the benefits of such schemes.  

Benefits of LIC Plan for Girl Child

• Paying off School Fees of your Child: In the event of a parent's death, the LIC plans for a girl child can assist in paying the kid's school fees and completing the child's education. This enables girls to receive higher education even if they do not have a regular source of money.
• Creating a Higher Education Fund: With constantly rising college and university tuition fees, providing further education for your child may become a big issue for you as parents. A LIC plan for your child, on the other hand, may help your daughter realize her desire of following the course of study of their choosing. It may also enable her to travel overseas for greater educational opportunities and exposure.
• Marriage Plans: A child plan may support other endeavors such as a wedding, in addition to education. Because the plan provides a lump payout upon maturity, it may be used to fund a variety of different goals.
• Avoids Capital Evaporation: The market's consistent volatility may result in capital erosion. Thus, the characteristics of child plans, such as Dynamic Fund Allocation and Systematic Transfer Plan, may assist the money invested, avoid capital loss and make the most of it.
• Taxation: The dividend received at maturity is totally tax-free, as well as the premiums paid, are also tax-free.
• Other Benefits: With these girl child plans, the applicant can choose to get survival benefits or a straight lump amount at the end, along with various added perks. Borrowing from the insurance is possible, but only after a specified length of time has passed.

Best LIC Schemes for Girl Child

In India, LIC offers a multitude of schemes for the girl child. The parent may select the option that best meets their wants and expectations, as well as the one they feel is ideal for their child.  Following are some of the top LIC policies for girl child in India:

1. LIC Jeevan Tarun

LIC Jeevan Tarun is a policy that can be acquired by both parents and grandparents that includes provisions that will assist and safeguard your girl child's future needs. This approach is particularly created to help your child's education and future security. The plan fulfills all of the demands of a developing child, beginning with her educational needs and progressing to other associated necessities.

Main Features of the Scheme:

• It is an excellent scheme for meeting children's educational needs.
• It has an essential feature of the premium waiver.
• The maturity amount is tax-free 10 (10D), and the plan's premium payments are likewise income-tax deductible under 80C.
• Contributions for the survival benefit can also be determined based on your need between the ages of 20 and 24..
• The girl child would be entitled for risk coverage two years from the start of the policy or when she reaches eight, whichever comes first.
• During the death of a parent, a girl can receive 105% of all premiums paid or 125% of the total insured. 
• The policy provides a minimum sum assured of Rs. 75,000 and has no maximum amount restriction.

Eligibility

Minimum entry age: 90 days to 12 years old

Premium payment term: The premium paying term is a minimum of 8 years and a maximum of 20 at the age of entry. However, in the case of a 5-year-old child it is15 years

Policy term: 25 years at the entry age but, in the case of a 5-year-old child it is 20 years.

2. LIC’s Aadhar Stambh

The LIC's Aadhar Stambh plan is one of the greatest for a parent, and he may name his daughter as a nominee in the policy. It is a mix of insurance and savings that demonstrates how to live a trouble-free life. 

Main Features:

• The plan provides a minimum sum assured of Rs. 75,000 and a maximum value assured of Rs. 3 lakhs.
• Furthermore, when a policyholder dies, the plan pays the basic sum insured or 10 times the cumulative premium or 105% of all premiums paid, whichever is greater. 
• It is the greatest LIC program for girls that provides opportunities to obtain additional benefits. 

Eligibility

The entry age is 8 years old, while the maximum age is 55 years old.

3. LIC New Children’s Money Back Plan

It is a non-linked money-back plan that is tailored specifically to the needs of a girl child. This plan offers both savings and investment opportunities for a youngster, providing solutions to relieve financial stress. At the same time, this LIC insurance for children includes risk coverage, and policyholders should take precautions to guarantee worry-free travel.

Main Features

• The plan offers refunds on high premium amounts, allowing the user to save money while still enjoying the plan's advantages.
• The concept provides a girl kid with a basic money guaranteed amount of 20% when she reaches the ages of 18, 20, and 22.
•  It is also one of the best LIC plans for a girl child, allowing parents to assure a bright future for their daughter through a variety of features. 
• Customers who are dissatisfied with this LIC coverage for children have 15 days to return the policy. 
• The plan's minimum sum assured amount is Rs. 1 lakh, and there is no maximum sum assured amount.
• There is a grace period if premiums are paid on a monthly basis. There is a 15-day grace period for monthly subscription payments and a 30-day grace period for other means. If the balance is not paid during the grace period, the insurance will be canceled.
• After three years, the policy can be surrendered with all premiums paid up to that point.
• If the life insured dies suddenly and unexpectedly, the death benefit will be given to the nominee or dependent.

Eligibility

• There is no minimum at entry age, however, the maximum entry age is 12 years. Also, 7 or 10 years for premium payments. 

4. LIC Jeevan Labh

LIC Jeevan Labh is another best policy that you can avail for your girl child. Following are the main features and eligibility criteria for the policy: 

Main Features:

• It is the ideal LIC insurance for girls since it would assist them to acquire coverage when they reach the age of eight. 
• The plan's minimum sum insured amount is Rs. 2 lakhs, and there is no maximum amount limit.
• During an emergency, a policyholder can even get a loan through this plan. The plan gives you the choice of receiving the maturity benefit all at once or in equal payments. 
• It is offered for 16 years, 21 years, and 25 years, providing for more rewards. 
• A policyholder can also select five rider advantages according to the respective preferences. Accidental benefit rider,  premium waiver benefit, term assurance rider, critical illness rider, and accidental death and disability benefit rider are examples of such riders.
• When a policyholder dies, a beneficiary is entitled to the basic sum insured or 7 times the accrued premiums under this plan.

Eligibility

• The lowest payment term for premium is ten years, while the maximum payment term is sixteen years.
• Age of Entry: 8 years minimum

Maximum Premium Paying Term: 50 years - 25 years

Premium Paying Term - 54 years - 21 years

Premium Paying Term - 59 years - 16 years

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5. Other Policies

LIC Kanyadan

The insurance provided by LIC Kanyadan covers your daughter. This policy, in contrast to others, offers a support system for your daughter's possible marriage and education costs. The Life Insurance Corporation of India developed the Kanyadan Policy to assist parents financially. You are safeguarded from risk and given the opportunity that would save funds until the end of the term thanks to the Kanyadan Policy. Because of the incredibly low premiums and the numerous guaranteed possibilities, it is a great plan for parents.

LIC Jeevan Umang

It has entire lifespan insurance and is a reputable non-linked premium funding plan. From the beginning of the premium-paying period until the policy's maturity, yearly benefits will continue to be provided. A lump sum payout is provided whenever the insurance reaches maturity or if the insured passes away. This plan's eligibility ranges from 90 days (for infants) to 55 years old. The payment terms for the premium are 15, 20, 25, or 30 years. There is no maximum promised amount; the minimal guaranteed amount is 2 lakhs. It delivers a 100-year lifetime cover-up.

These are profitable investments that don't involve any risk. Regardless of whether you as a parent are still alive or not, these agreements guarantee the development of a financial corpus. The girl child insurance plan might help ensure your girl child's financial life. Children who will be the leaders of tomorrow need to be able to live a secure financial existence and meet their basic requirements, including their educational demands, even if a parent or the household's primary earner is not there. Therefore, in order to assure a secure and safe future for children, especially for girls, a child plan has become exceedingly vital.