LIC Kanyadan Policy Calculator
Calculate maturity amount, premiums, and benefits for LIC’s Kanyadan Policy (Table No. 833)
Comprehensive Guide to LIC Kanyadan Policy (Table No. 833) Calculator
The LIC Kanyadan Policy (Table No. 833) is a specialized money-back plan designed to secure a daughter’s future by providing financial support at key milestones. This policy combines insurance protection with savings, making it an attractive option for parents planning for their daughter’s education, marriage, or other significant life events.
Key Features of LIC Kanyadan Policy
- Entry Age: 0 to 7 years (age at entry)
- Policy Term: (25 – age at entry) years
- Maturity Age: 25 years
- Sum Assured: Minimum ₹1,00,000 (no upper limit)
- Premium Payment Term: (Policy term – 5) years
- Survival Benefits: 20% of Sum Assured payable at ages 18, 21, and 24 years
- Maturity Benefit: 40% of Sum Assured + vested bonuses
- Death Benefit: Full Sum Assured + vested bonuses (if death occurs before maturity)
- Bonus: Simple reversionary bonuses declared annually (currently ~₹45 per ₹1000 Sum Assured)
- Loan Facility: Available after 3 years of premium payment
How the LIC Kanyadan Policy Calculator Works
Our calculator uses the following parameters to compute benefits:
- Child’s Current Age: Determines the available policy terms and premium payment periods
- Sum Assured: The guaranteed amount payable on maturity or death
- Policy Term: Automatically calculated as (25 – entry age) years
- Premium Payment Mode: Affects the total premium amount (yearly payments are most cost-effective)
- Optional Riders: Additional coverage like Accidental Death Benefit or Critical Illness Rider
- Bonus Rate: Uses current LIC bonus rate of ₹45 per ₹1000 Sum Assured (subject to change)
Premium Calculation Methodology
LIC uses complex actuarial tables to determine premiums based on:
- Age at entry (younger age = lower premiums)
- Sum Assured (higher SA = higher premiums but better bonuses)
- Policy term (longer terms may have slightly higher premiums)
- Premium payment mode (monthly payments include additional charges)
- Medical history (standard cases assume no extra loading)
Our calculator uses approximate premium rates based on LIC’s published tables. For exact figures, always consult the official LIC website or a licensed agent.
Survival Benefits Schedule
The policy pays out survival benefits at three key ages:
| Age (Years) | Benefit Percentage | Typical Use Case |
|---|---|---|
| 18 | 20% of Sum Assured | Higher education expenses |
| 21 | 20% of Sum Assured | Post-graduation or professional courses |
| 24 | 20% of Sum Assured | Marriage or business startup |
| 25 (Maturity) | 40% of Sum Assured + Bonuses | Final financial security |
Bonus Projections and Historical Performance
LIC’s bonus rates have shown remarkable stability over the years. Here’s the historical data for similar participating plans:
| Year | Bonus Rate (per ₹1000 SA) | Economic Context |
|---|---|---|
| 2015-16 | ₹44 | Moderate growth period |
| 2016-17 | ₹44 | Demonetization impact |
| 2017-18 | ₹45 | Post-GST stabilization |
| 2018-19 | ₹46 | Pre-pandemic growth |
| 2019-20 | ₹46 | Early pandemic period |
| 2020-21 | ₹45 | Pandemic recovery |
| 2021-22 | ₹45 | Post-pandemic stabilization |
| 2022-23 | ₹45 | Current rate (as of last declaration) |
Note: Bonus rates are not guaranteed and depend on LIC’s annual valuation. The calculator uses ₹45 as a conservative estimate for projections.
Tax Benefits Under Section 80C and 10(10D)
The LIC Kanyadan Policy offers significant tax advantages:
- Premiums Paid: Eligible for deduction under Section 80C up to ₹1.5 lakh per annum
- Maturity Proceeds: Completely tax-free under Section 10(10D) if premiums don’t exceed 10% of Sum Assured in any year
- Survival Benefits: Also tax-free under Section 10(10D)
- Death Benefits: Always tax-free for the nominee
For official tax rules, refer to the Income Tax Department website.
Comparison with Other Child Plans
How does Kanyadan Policy compare to other popular child plans?
| Feature | LIC Kanyadan (833) | LIC Jeevan Tarun (834) | LIC New Children’s Money Back | HDFC Life YoungStar Udaan |
|---|---|---|---|---|
| Entry Age | 0-7 years | 0-12 years | 0-12 years | 0-17 years |
| Policy Term | 18-25 years | 13-25 years | 18-25 years | 10-25 years |
| Survival Benefits | 20% at 18,21,24 | Flexible percentages | 20% at 18,20,22 | Customizable |
| Maturity Benefit | 40% + bonuses | 100% + bonuses | 40% + bonuses | Fund value |
| Bonus Type | Simple reversionary | Simple reversionary | Simple reversionary | Market-linked |
| Loan Facility | After 3 years | After 3 years | After 3 years | After 2 years |
| Premium Waiver | Optional rider | Inbuilt | Optional rider | Inbuilt |
When to Choose LIC Kanyadan Policy
This policy is ideal if you:
- Want a traditional plan with guaranteed returns
- Prefer LIC’s government-backed security
- Need survival benefits at specific ages (18, 21, 24)
- Want tax-free maturity proceeds
- Prefer simple reversionary bonuses over market-linked returns
- Are planning for a daughter’s future with milestones at 18+ years
Consider alternatives if you:
- Want higher potential returns (consider ULIPs)
- Need more flexibility in premium payments
- Prefer a shorter policy term
- Want to cover sons as well (Kanyadan is daughter-specific)
- Premium Calculation:
=VLOOKUP(age, premium_table, term_column, TRUE) * (sum_assured/1000)
- Survival Benefits:
=IF(age=18, sum_assured*0.2, IF(age=21, sum_assured*0.2, IF(age=24, sum_assured*0.2, 0)))
- Bonus Calculation:
=sum_assured/1000 * bonus_rate * policy_term
- Maturity Amount:
=sum_assured*0.4 + bonus_amount
- IRR Calculation:
=XIRR(premiums_paid, maturity_date)
- Grace Period: 30 days for yearly/half-yearly/quarterly modes, 15 days for monthly
- Revival: Can be revived within 2 years from last unpaid premium by paying all arrears with interest
- Paid-up Value: After 3 years, you can convert to a paid-up policy with reduced benefits
- Surrender: After 3 years, you can surrender for the surrender value (typically 30% of premiums paid)
- Proposal form (duly filled)
- Age proof of child (birth certificate)
- Address proof of parent/guardian
- Identity proof of parent/guardian
- Photographs of child and parent
- Medical reports (if required based on Sum Assured)
- Start Early: Premiums are significantly lower for younger ages. A policy taken at age 0 costs about 30% less than one taken at age 7 for the same Sum Assured.
- Choose Higher Sum Assured: Bonuses are calculated per ₹1000 of Sum Assured, so higher SA means disproportionately higher bonuses.
- Opt for Yearly Payments: Avoid monthly/quarterly modes which include additional charges (typically 2-4% extra).
- Add Riders Judiciously: The Accidental Death Benefit rider is often worth the small additional cost (0.1% of SA per year).
- Use Survival Benefits Wisely: The 20% payouts at 18, 21, and 24 can be reinvested in higher-return instruments if not immediately needed.
- Combine with Other Plans: Pair with a term plan for the parent to ensure premiums continue even in case of unfortunate events.
- Monitor Bonus Declarations: While our calculator uses ₹45, check LIC’s annual reports for updated bonus rates to adjust your expectations.
- Sukanya Samriddhi Yojana (SSY): Government-backed scheme with ~8% interest (tax-free), but limited to ₹1.5 lakh/year. Official SSY details
- Mutual Fund SIPs: Equity funds have historically returned 12-15% over long terms, though with market risk.
- Public Provident Fund (PPF): 7-8% tax-free returns with 15-year lock-in.
- Child ULIPs: Market-linked returns with life cover, but higher risk.
- Real Estate: Can appreciate significantly but lacks liquidity.
- Gold ETFs/Sovereign Bonds: Hedge against inflation with moderate returns.
How to Use the Excel Version of This Calculator
For advanced users who prefer Excel, you can create your own calculator using these formulas:
For a ready-made Excel template, you can download the official version from LIC’s premium calculator page.
Frequently Asked Questions
Q1: Can I take a loan against the Kanyadan policy?
A: Yes, you can take a loan after paying premiums for at least 3 full years. The loan amount can be up to 90% of the surrender value, with interest rates typically around 9-10% per annum.
Q2: What happens if I stop paying premiums?
A: The policy will lapse if premiums aren’t paid. However, you have these options:
Q3: Are the bonuses guaranteed?
A: No, bonuses are not guaranteed as they depend on LIC’s annual valuation. However, LIC has maintained bonus payments even during economic downturns, making them relatively stable compared to market-linked returns.
Q4: Can I increase the Sum Assured later?
A: No, the Sum Assured is fixed at policy inception. However, you can purchase additional policies if you need more coverage.
Q5: What documents are required to buy this policy?
A: Typically required documents include:
Expert Tips for Maximizing Returns
Alternative Investment Options
While LIC Kanyadan offers security, consider these alternatives for potentially higher returns:
A balanced approach often works best – for example, using LIC Kanyadan for the guaranteed portion while investing additional amounts in equity mutual funds for higher growth potential.