Yes,for investing in LIC policy for her,you will get deduction under sec 80C within the overall limit of rs 1 lac.Moreover,you will get a furthur deduction of rs 50,000 (Rs 75,000 for severe disability) under sec 80DD if you spend any amount (even if less than the above amount) on her medical treatmant or amount deposited under an approved scheme of LIC or UTI or any other insurance company,Moreover,if you give a gift to her and she earns income from such gift,that income wont be clubbed with your income and Sec 64(1A)clearly mentions that minors who suffer from disability mentioned in Sec 80U,any income to them is exempt from clubbing provisions.The benefit of this would be that under Sec 80U Rs 50,000 deduction is allowed for handicapped assessees (Rs 75,000 for severe disability).You can take advantage of these provisions.
