Choosing the Best LIC Policy for a 5-Year-Old Girl: Jeevan Lakshya vs Jeevan Labh
Introduction
When planning for a daughter's future, including her education, healthcare, and even her marriage, a life insurance policy can be an excellent investment to secure her financial safety and well-being. This article delves into the comparison between LIC Jeevan Lakshya and LIC Jeevan Labh, helping you make an informed decision for your 5-year-old daughter.
Jeevan Lakshya
LIC Jeevan Lakshya is a preferred choice for many parents looking to provide for their daughter’s marriage fund. The primary benefit lies in the term of the policy, where the sum assured is guaranteed and paid, along with bonus, upon maturity. Additionally, the policy includes critical illness cover, which pays the full sum assured in case of a covered critical illness.
To ensure the policy is adequately structured for long-term coverage, it is suggested to opt for a term of 20 years, with a premium paying term of 17 years. Riders such as the Term Rider and the Critical Illness Rider enhance the overall coverage. The term rider waives future premiums if the insured suffers a critical illness, ensuring the sum assured is still maintained. In the event of the insured's death during the term, 10% of the sum assured is paid.
Jeevan Labh
LIC Jeevan Labh is another competitive policy that is often chosen by parents for their daughter. The policy’s term is 16 years, with a premium paying term of 13 years. In the unfortunate event of the life assured's death, future premiums are waived, and the sum assured is paid annually to the daughter until the maturity of the policy, which occurs at the 21st birthday. This makes it an attractive option, especially as the annual payout is tax-free and includes an accident cover.
Kanya Dhan Policy: A Popular Choice
Amongst common people, LIC Jeevan Lakshya is known as the ‘Kanya Dhan’ policy, which is dedicated to girl child policies. This policy comes with additional benefits that cater to the well-being of the child. If the proposer suffers any mishap, the term rider ensures that all future premiums are waived off until the child turns 18. Additionally, in the event of the proposer's death, a full payment is made to the nominee, followed by 10 yearly installments. This feature makes the policy highly valuable for parents.
Investing in Life Insurance: A Wise Decision for Secure Futures
Despite the uncertainties of the market, life insurance policies like LIC Jeevan Lakshya and LIC Jeevan Labh continue to offer decent returns ranging from 6-8%, with some policies guaranteeing returns of up to 8%. Investing in a policy like Jeevan Lakshya ensures that in times of high volatility, your daughter's financial future is secured. It is crucial to consider self-insurance and safety by opting for a policy that aligns with your financial goals and provides the necessary security.
Conclusion:
Deciding between Jeevan Lakshya and Jeevan Labh involves weighing your priorities and the specific benefits each policy offers. If your primary goal is to plan for your daughter's marriage, then Jeevan Lakshya may be the better choice. However, if you are more concerned about annual payouts and tax benefits, Jeevan Labh might be more suitable. Ultimately, the right policy reflects your child's long-term financial needs and your commitment to their future.