Overview
Searching for an LIC Kanyadan policy calculator? The first thing to understand is that LIC has never launched a policy officially called “LIC Kanyadan.” The name is commonly used by agents and websites while referring to LIC Jeevan Lakshya, a participating endowment plan.
A calculator may give you an approximate premium based on your age, basic sum assured, and policy term. However, the maturity amount is partly dependent on future bonuses and cannot be guaranteed through a calculator.
This guide explains how the calculator works, the inputs it requires, what it estimates, how the death benefit and premium waiver work, and how the plan compares with Sukanya Samriddhi Yojana (SSY).
What Is the LIC Kanyadan Policy and Which Plan It Really Is?
The LIC Kanyadan Policy is the name commonly used for LIC Jeevan Lakshya (Plan 733), a participating, non-linked, limited-premium endowment plan. It is marketed as a daughter's future or marriage plan because it combines life insurance with savings and offers a premium waiver and annual income benefit if the parent dies during the policy term.
The current Jeevan Lakshya Plan 733 (UIN: 512N297V03) replaced Plan 933, which was withdrawn for new sales on 1 October 2024 under IRDAI's product regulations.
Existing Plan 933 policyholders continue under their original terms, while new policies are issued under Plan 733.
Note: The continued use of the "LIC Kanyadan Policy" label by agents and websites often leads buyers to believe it is a separate LIC product, when it is simply another name for Jeevan Lakshya.
What Does the LIC Kanyadan Policy Calculator Estimate?
The LIC Kanyadan policy calculator estimates the policy's key financial benefits based on details such as your age, sum assured, and policy term. While the exact results vary across calculators, most provide estimates for:
- Premium Payable: Monthly or annual premium based on your selected sum assured, policy term, and age.
- Estimated Maturity Value: The basic sum assured plus projected bonuses payable at maturity.
- Death Benefit: The amount payable if the life insured dies during the policy term, including applicable policy benefits.
These figures are only estimates based on LIC's product features and assumed bonus rates. Since LIC declares bonuses periodically, the final maturity value may differ. The personalized benefit illustration issued by LIC at the time of purchase provides the most accurate estimate of the premium, surrender value, maturity benefit, and other policy benefits.
Readers should obtain an accurate quote from a licensed LIC agent or branch and review the complete benefit illustration before making a purchase decision.
Details You Need Before Using the LIC Kanyadan Policy Calculator
To estimate your premium and benefits accurately, the LIC Kanyadan policy calculator requires a few key policy details. These inputs determine the premium payable, maturity value, and death benefits under the plan.
- Entry Age: The age of the life insured at the time of purchase, between 18 and 50 years.
- Policy Term: The duration of the policy, which can range from 13 to 25 years.
- Premium Payment Term (PPT): The period for paying premiums, which is always 3 years shorter than the policy term.
- Basic Sum Assured: The amount of life cover, starting from ₹2 lakh, with no fixed upper limit (subject to LIC's underwriting guidelines).
- Premium Payment Mode: Premiums can be paid annually, half-yearly, quarterly, or monthly.
- Optional Riders: You can enhance your coverage with riders such as the accidental death and disability benefit rider, accident benefit rider, or new term assurance rider.
Ditto’s Key Insight: The waiver of premium rider is the most valuable for most buyers, as it keeps the policy active if the policyholder cannot pay future premiums due to specified events. A critical illness rider can also be useful but should be compared with standalone critical illness plans. If the goal is higher life cover, a standalone term insurance plan is more cost-effective than adding a term rider.
Note: The life insured is the parent, not the daughter. If a calculator asks for the daughter's age, it is only to help choose a policy term that aligns with milestones such as her higher education or marriage. However, the policy is not legally restricted to daughters, marriage expenses, or parents.
How Do the Death Benefit and Premium Waiver Work?
If the life assured dies during the policy term, the death benefit is not paid as a single lump sum immediately. Instead, the policy provides financial support in stages:
- Annual Income Benefit: LIC pays 10% of the basic sum assured every year, starting from the policy anniversary coinciding with or following the date of death until the policy anniversary immediately before maturity.
- Maturity Benefit: On the original maturity date, the nominee receives 110% of the basic sum assured, along with all vested simple reversionary bonuses and any Final Additional Bonus (FAB), if declared.
- Premium Waiver: All future premiums are waived after the life assured's death. However, the policy continues until maturity and remains eligible for bonuses.
The sum assured on death is the higher of seven times the annualized premium or the total of 110% of the basic sum assured payable on the maturity date and the annual income benefits payable after death. The total death benefit cannot be less than 105% of the premiums paid up to the date of death.
Worked Example: LIC Kanyadan Premium and Maturity Over 25 Years
To understand how the LIC Kanyadan policy calculator works, consider LIC's benefit illustration for a 35-year-old purchasing LIC Jeevan Lakshya (Plan 733) with a basic sum assured of ₹2 lakh, a 25-year policy term, and a 22-year premium payment term.
Note: Based on LIC's benefit illustrations, the policy delivers an Internal Rate of Return (IRR) of about 0.83% p.a. under the 4% scenario and 4.3% p.a. under the 8% scenario, depending on the bonuses declared.
Most LIC Kanyadan policy calculators show only the premium and projected maturity value, not the effective rate of return. For detailed benefit illustrations, assumptions, and policy terms, refer to the LIC Jeevan Lakshya sales brochure.
The table below shows the illustrative annual premiums for a basic sum assured of ₹2 lakh across different entry ages and policy terms.
The Truth Behind the "₹75-A-Day" LIC Kanyadan Claim
You've probably come across advertisements claiming you can invest ₹75-a-day and receive ₹14.5 lakh for your daughter's future. While the claim isn't entirely misleading, it leaves out several important details. Paying ₹75-a-day works out to about ₹27,375 a year. Over a 22-year premium payment term (for a 25-year policy), your total premium outgo is roughly ₹6 lakh.
The advertised maturity amount assumes that LIC will continue to declare favorable bonuses throughout the policy term. In practice, the ₹14.5 lakh figure is only an illustration, not a guaranteed payout. Based on LIC's standard benefit illustrations, the policy's effective long-term return is around 4%-5% per annum, depending on future bonus declarations.
Before buying, ask for the basic sum assured, the premium payment term, and LIC's 4% and 8% benefit illustrations. These documents provide a more realistic picture of the policy's expected maturity value than a headline claim alone.
LIC Kanyadan Policy vs. Sukanya Samriddhi Yojana (SSY)
Note: For a detailed comparison, you can also read our Sukanya Samriddhi Yojana vs. LIC Kanyadan policy guide.
LIC Performance Metrics
Note: The figures above are based on LIC's public disclosures and IRDAI annual reports. For detailed comparison with other insurers, explore Ditto Data Lab. The metrics above reflect LIC's overall performance, not LIC’s endowment plans specifically.
Who Should Consider the LIC Kanyadan Policy?
- Parents seeking life insurance with disciplined savings under a single plan.
- Families that value the premium waiver and annual income benefit if the earning parent dies during the policy term.
- Conservative investors who prefer LIC-backed products over market-linked investments.
Who Should Avoid It?
- Families whose primary goal is wealth creation, as alternatives like Sukanya Samriddhi Yojana (SSY) may offer better long-term returns.
- Individuals looking for higher life cover, since a standalone term insurance plan provides significantly more protection at a lower cost.
- Investors seeking higher long-term returns, as the policy's maturity benefits depend on non-guaranteed bonuses and have historically delivered modest returns.
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Conclusion
The LIC Kanyadan policy calculator can help estimate premiums, maturity value, and death benefits under LIC Jeevan Lakshya (Plan 733), but its results are only indicative. The final benefits depend on LIC's declared bonuses and the official benefit illustration issued at the time of purchase.
For most families, a separate term insurance plan for the earning parent combined with a dedicated investment option is often a more effective approach than relying on a bundled insurance-cum-savings plan. This provides adequate life cover while allowing investments to grow through products better suited to long-term wealth creation.
If you're exploring life insurance options, check out our guide to the best term insurance plans to compare plans from leading insurers.
Frequently Asked Questions
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