Sukanya Samriddhi Yojana (SSY) Vs LIC

Life Insurance Corporation (LIC) is known for providing life insurance products to its customers. One of its products, LIC Kanyadan, is comparable with the benefits offered by SSY. Both the schemes offer financial protection for girl children and look to cover education and marriage expenses for them.

Sukanya Samriddhi Yojana Vs LIC

One thing to note here is that an SSY account can only be accessed by the girl child once she attains 18 years of age, while LIC Kanyadan does not provide access to the girl child at all until the father’s death.

Here are a few more differences between the LIC Kanyadan scheme and SSY.

Parameters LIC Kanyadan Scheme SSY

Feature	Sukanya Samriddhi Yojna (SSY)	Kanyadan Policy (LIC)
Purpose	Savings scheme for the girl child	Insurance policy tailored for marriage and education expenses
Eligibility	Parents/guardians of a girl child aged 10 years or below	Parents/guardians of a girl child
Nature of Policy	Savings account	Life insurance with savings component
Age of Maturity	21 years from the date of opening the account	Typically 25 years or as specified in the policy
Minimum Contribution	₹250 per year	Varies as per the plan and sum assured
Tax Benefits	Exempt under Section 80C of the Income Tax Act	Premiums paid qualify for tax deduction under Section 80C
Interest Rate	Determined by the government; currently around 7.6% per annum (2024)	Varies based on the specific plan
Lock-in Period	Until the girl reaches 18 years, partial withdrawal allowed	Depends on the policy term, generally locked until maturity
Loan Facility	Not available	Loan against policy may be available after a certain period
Maturity Benefits	Amount plus interest accrued	Sum assured plus bonuses (if any)
Partial Withdrawal	Up to 50% for higher education or marriage after girl turns 18	Allowed as per the policy terms for marriage/education expenses
Penalty for Late Payment	Nominal penalty of ₹50 per year	Grace period allowed, but policy might lapse if not paid
Risk Cover	No risk cover, purely a savings scheme	Provides life cover along with savings
Government Backed	Yes, backed by the Government of India	No, it's a private insurance policy
Flexibility in Contributions	Yes, flexible annual contributions	Typically fixed premiums as per the policy term
Premature Closure	Allowed in certain cases such as the death of the account holder	Surrender value available but may involve penalties
Additional Benefits	None	May include bonuses and additional riders

Account/Policy Ownership Policy is to be purchased in the name of the father of the girl child Account is to be opened in the name of the girl child, maintained by the guardian until she reaches 18 years of age

Eligible Nationality Any father of a girl child Resident Indians only

Age Eligibility Father: 18 years to 50 years Daughter: minimum of 1 year Before the girl child attains 10 years of age

Loan Facility Can be availed after making premium payments for three consecutive years Not available

Premium/Deposit Limit No maximum limit Minimum Rs.250 up to Rs.1.5 lakh per fiscal year

Maturity Amount Minimum Rs.1 lakh with no maximum limit Based on the deposits made

Sukanya Samriddhi Scheme (SSY) is a dedicated scheme for the empowerment of and the secured future of the girl child. Every parent of a girl child must consider investing in this scheme as it also doubles as a good tax-saving instrument. Parents can open a SSY account in the name of a girl child within 10 years of her birth. The maturity proceeds from SSY will help them to cover the expenses of her college and marriage.