ICICI Prudential offers an investment plan that helps its customers secure their child’s career, despite the rising cost of education. This plan helps you avail funds at key educational milestones that can be used to secure your children’s future. The ICICI Prudential Smart Kid Solution provides multiple options for investment for your child as well as a Smart Benefit that enables accumulation of wealth even in your absence. ICICI allows you withdrawal at key educational milestones of your child at any point of time after completion of five policy years.
Given below are certain eligibility criteria that need to be met when applying for the plan:
|Minimum age at entry||20 years|
|Maximum age at entry||54 years|
|Minimum age at maturity||30 years|
|Maximum age at maturity||64 years|
|Premium Payment Term||One Pay – Single Pay Regular Pay – Same as Policy Term|
|Type of plan||Unit Linked Insurance Plan (ULIP)|
The table given below the Sum Assured, premium range, the frequency of payment, and the payment mode under the ICICI Pru Smart Kid Solution.
|Premium Policy Term||One Pay – 10 years Regular Pay Option – 10 – 25 years|
|Minimum Premium under Regular Pay option||Entry Age||Minimum Premium|
|20 – 49 years||Rs.45,000 p.a.|
|50 – 52 years||Rs.1,20,000 p.a.|
|53 – 54 years||Rs.5,00,000 p.a.|
|Minimum Premium under One Pay option||Entry Age||Sum Assured||Minimum Premium|
|20 – 54 years||1.25 X Single Premium||Rs.48,000|
|20 – 28 years||10 X Single Premium||Rs.48,000|
|29 – 35 years||10 X Single Premium||Rs.1,25,000|
|Sum Assured under Regular Pay option||Entry Age||Minimum Sum Assured||Maximum Sum Assured multiple|
|Below 45 years||10 X Annual Premium or 0.5 X Policy Term X Annual Premium, whichever is higher||As per maximum Sum Assured multiples|
|7 X Annual Premium or 0.25 X Policy Term X Annual Premium, whichever is higher|
|Sum Assured under One Pay option||Entry Age||Minimum Sum Assured||Maximum Sum Assured multiple|
|Below or equal to 35 years||1.25 X Single Premium||10 X Single Premium|
|Above 35 years||1.25 X Single Premium||1.25 X Single Premium|
|Premium Payment Modes||Regular Pay – Annual, Half-yearly, Monthly One Pay - Single|
*Premiums vary based on age, location, plan term and other factors
The ICICI Pru Smart Kid Solution offers the following benefits:
|Death Benefit||Payable on death of the Life Assured in two parts:
|Maturity Benefit||Payable on maturity of policy, comprising of the Fund Value including the Top-up Fund Value, if any|
|Loyalty Additions||Payable as rewards from the sixth policy year onwards in the form of extra units at the end of every policy year|
|Wealth Boosters||Allocated as extra units at the end of every fifth policy year commencing at the end of the tenth policy year|
|Surrender Benefit||On completion of five policy years, surrender value is payable as the Fund Value inclusive of Top-up Fund Value|
|Tax Benefit||Can be availed as per prevailing Income Tax laws|
Death Benefit: Death Benefits is payable to the family of the Life Assured in case of his or her death, in two parts –
Maturity Benefit: On maturity of policy, ICICI grants the policyholder the Fund Value along with the Top-up Fund Value, if any from the sixth policy year onwards. This benefit is payable irrespective of the survival of the Life Assured until the policy’s maturity. It can be availed either as a lump sum or as a structured payout.
Loyalty Additions: Under this plan, policyholders get rewarded for paying regular premium payment on time, from the sixth policy year onwards. The company allocates extra units at the end of every policy year, where each unit is equal to 0.25% of the average of the Fund Values.
Surrender Benefit: If you want to surrender your policy after completion of five years, the surrender value comprises of the Fund Value plus Top-up Fund Value, if any.
There are no add-on plans under the ICICI Pru Smart Kid Solution.
For more information on exclusions under the plan, read the brochure provided by the company.
|Partial Withdrawals||Up to 20% of the Fund Value can be withdrawn at any time after completion of five policy years|
Under the Smart Kid Solution, policyholders can avail tax benefits as per prevailing tax laws.
Other benefits that can be utilised by a policyholder while purchasing the ICICI Pru Smart Kid Solution are:
The ICICI Pru Smart Kid Solution from ICICI Prudential Life is an ideal choice as it enables you to earn potential returns by investing your money in equity and debt funds. You can also choose a desired investment strategy as per your child’s requirements. Wealth boosters under this plan help you magnify your savings further.
A. You can take up this plan from the age of 20 years. The maximum permissible age of entry is 54 years.
A. The minimum premium under this plan is based on your age, if you are between 20 to 49 years, it is Rs.45, 000, if you are between 50 to 52 years, it is Rs.1, 20,000, and if you are between 53 – 54 years, it is Rs.5, 00,000.
A. You can choose the policy to continue for 10 to 25 years.
A. Yes, ICICI charges towards Premium Allocation under the plan as a percentage of premium. It is charged at 3% of premium for One Pay option and for Regular Pay option:
|Premium Payment Mode||Year 1||Year 2||Year 3||Year 4 to 5||Year 6 onwards|
A. Yes, you will have to pay an allocation charge of 2% for all Top-up Premiums.
A. Mortality charges are calculated based on the Sum at risk. Sum at Risk comprises of the lump sum benefit and the current value of future premiums.
A. No, the Discontinuance Charges are different for One Pay and Regular Pay options and varies according to the policy year in which it has been discontinued.
A. Given below are the funds and their charges, under the plan:
|Fund Name||Fund Management Charge|
|Multi Cap Growth Fund||1.35%|
|Maximise India Fund||1.35%|
|Multi Cap Balanced Fund||1.35%|
|Money Market Fund||0.75%|
A. Yes, ICICI offers the following discounts on premium allocation charge if the policy is purchased from their website:
A. If you take up this plan, your taxable income can be reduced by investing close to Rs.1.5 lakh under Section 80C. You can also transfer your money from equity to debt or vice-versa, which is tax-free. The maturity or death benefit received under the policy is also tax free.