ICICI Pru SmartKid Plan
The ICICI Pru SmartKid insurance plan is a specialized child-oriented investment plan that enables you to invest money in unit-linked funds and allows you to withdraw money to cover costs at significant educational milestones for your child. Furthermore, the life insurance protection provided by this policy guarantees that your loved ones will be financially secure in the event of your death.
The policy offers a variety of investment options for one’s child’s future, as well as a Smart Benefit that guarantees that wealth creation will continue even after the parent has passed away. After five policy years, withdrawals may be made at any time to cover costs associated with the child’s important educational milestones. Read on to know more about the ICICI Pru SmartKid’s eligibility criteria, features and benefits, premium calculation, and more.
Here is the eligibility criteria for ICICI Pru SmartKid.
|Minimum / Maximum Entry Age (Parent)||20 – 60 years|
|Minimum / Maximum Entry Age (Child)||0 – 15 years|
|Maximum Age at Maturity (Parent)||75 years|
|Minimum / Maximum Age at Maturity (Child)||19 – 25 years|
|Minimum / Maximum Term||10 – 25 years|
|Premium Payment Frequency||Yearly, Half-yearly, Monthly|
|Minimum Premium||Rs.10,000 per annum|
|Minimum Sum Assured|
Annual Premium X 5, subject to
a minimum of Rs. 1,00,000
Key Features & Benefits of ICICI Pru SmartKid Insurance Plan
Here is the list of the important features and benefits of the ICICI Pru SmartKid Plan:
- Maturity Benefit
You will be eligible to receive the Fund Value upon policy maturity depending on the term you choose. You might choose the Settlement Options as an alternative. You are entitled to receive the Fund Value at the time of Maturity upon Maturity of This Policy. This will also cover the Fund Value for top-ups. Alternative options include settlement options.
- Death benefit – The benefit payable upon the death of the life assured will be divided into two parts:
- A lump sum benefit that exceeds: Amount Assured, including the Top-up Amount Assured Lowest Death Benefit 105 percent of the total premiums paid, including top-up premiums, is the minimum death benefit (if any).
- Smart Benefit: For Regular Pay plans, units equal to the installment payment will be distributed by the insurer on the consecutive premium due dates for Regular Pay policies after the date of the life assured’s death. The One Pay option is not eligible for this benefit.
- Automatic Transfer Strategy
Using this method, you can deposit your premium in our money market fund (Preserver) as a lump sum and transfer a predetermined amount into any of the following funds each month: R.I.C.H. II, Flexi 4 Growth II, and Multiplier II This service will be provided without charge.
- Cover Continuance Option
If you choose this option, your life insurance coverage will continue even if you become unable to make premium payments after the first three years have passed. The units that are available in your fund will automatically be subtracted from all applicable fees. If you want to take advantage of this benefit, you must choose to cover continuance.
- Settlement Option
You have the option to receive the Fund Value as a structured benefit when the policy matures. With this facility, you can choose to receive payments annually, biannually, quarterly, or monthly (through ECS) for a settlement period of six years, which can be 1, 2, 3, 4, or 5. You have the option to withdraw the entire Fund Value at any time during the settlement period.
At any time, you may choose to expand your investment by contributing funds in addition to your regular premiums. A top-up must be at least Rs. 2,000. If all due premiums have been paid, top-up payments may be paid at any point during the policy’s term. When a top-up is purchased, the Sum Assured is increased, and you have the choice of choosing an increase of either 125% or 500% of the top-up premium amount as the Sum Assured increases.
- Money at Key Educational Stages
At significant points throughout your education, you can take partial withdrawals from your Fund Value. After five policy years have passed, partial withdrawals are permitted. You may withdraw a maximum of 25% of the Fund Value in one partial withdrawal per policy year, with a total of 5 withdrawals permitted over the course of the 7 policy’s term. A partial withdrawal must be at least Rs. 2,000.
- Tax Benefits
Sections 80C, 80D, and 10D of the Income Tax Act of 1961 contain conditions that must be met to receive tax benefits under the policy. The applicable rates for service tax and the educational cess will be added on top of the price. There may occasionally be changes made to the tax laws.
How Does the ICICI Pru SmartKid Plan Work?
Let’s take an example to understand!
A man, named Mr. Lokesh Bhatia, looking for an investment cum insurance plan for his kid that can help him fulfill his dreams. After getting many suggestions from friends and searching on the internet, he stumbled upon the ICICI Pru SmartKid Plan and found it a great deal of investment. Mr. Bhatia, then, decided to safeguard his beloved kid with this plan.
Here’s what he will get under different circumstances.
|Age||Annual Premium||Sum Assured||Term: 10 Years|
|30 Years||Rs. 25, 000||Rs. 2, 50, 000|
Returns @ 6% p.a. Rs. 2,93,612
Returns @ 10% p.a. Rs. 3,65,756
Frequently Asked Questions
Yes, when five policy years have passed, one may take money for important educational milestones.
You can give up your policy, of course. After surrender fees are subtracted, you have access to surrender values, which are based on the number of completed policy years.
For those who don’t know, there are 4 free switches are permitted every policy year. Additional switches will incur a fee of Rs. 100 each.
You must be at least 30 years old and no older than 64 years old when the plan matures.