Being a parent is undoubtedly, a heroic task. Financial planning for a child’s future is an essential and ongoing process. It is crucial to choose smart investment options aimed at providing a secure path for your child. One such investment avenue is a child education plan.
ICICI Pru Smart Kid with Smart Life is a child education plan, which is a sustainable investment option. It also provides financial security to your spouse and child, in case anything happens to you. Here are some of the plan's benefits that make it a sound investment for your child’s future:
Premium Waiver Benefit~: As a parent, you would not want to leave your family behind with any financial burden, after your demise. We ensure the same with this plan. Also, all future premiums are waived off in case of your death. ICICI Prudential Life continues investing in the rest of the premiums on your behalf. Your child can get that money on maturity, which will be a boon at the time of his or her higher studies and marriage.
Financial Protection: You always wish to rely on an investment that can provide you and your family with a sound financial protection. This plan gives you that sense of security. Your child gets a lump sum amount, at the time of your death (life cover). So, when you are not around, your child’s education does not get affected. This plan covers the school fees and other utilities of your family.
Control of Investment: You can expect complete flexibility on your investment to decide the allocation of your premium. Choose from equity, debt, or balanced funds to build a strong investment plan. It also gives you the freedom to switch between 8 investment options anytime, tax-free^^.
Emergency Withdrawal Fund: There can be an emergency case where you may need funds immediately. The child education plan from ICICI Prudential can take care of that by allowing you to withdraw up to 20%* of the fund value on the completion of 5 policy years.
Loyalty Additions^: This child education plan reaps you with the benefit of staying invested in the plan. It rewards you with Loyalty Additions^ and Wealth Boosters^ to give you sizeable returns.
Tax Benefit^^: Enjoy tax^^ benefits on the premiums you pay under Section 80C and on maturity under Section 10(10D) of the Income Tax Act, 1961.
Why is a child education plan important?
By investing in a savings plan for the child, parents can deal with costly education fees and inflation in prices, or an uncertain event. More importantly, your child will be financially protected at any point of time during his or her education.
It is essential to choose the right child education plan as it gradually develops into a support system for fulfiling your child’s future needs. He or she will continue to be under a security blanket in the present, and even in your absence. After all, a secure future is one of the greatest blessings you can give to your child!
|Points To Remember About Child Education Plan|
|Life Cover + Premium Waiver Benefit~|
|Invest in Equity, Debt and Balanced Funds|
|Get Loyalty Additions^ and Wealth Boosters^|
|Tax Benefit^^ up to ₹ 46,350/- on the Premium Paid|
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* Withdrawals are permitted provided monies are not in the DP Fund.
^ Loyalty Additions are applicable from the 6th policy year onwards. This is in the form of extra units at the end of every policy year. Each Loyalty Addition will be equal to 0.25% of the average of the Fund Values on the last business day of the last eight policy quarters. You get an additional Loyalty Addition of 0.25% every year from the end of year 6 if all premiums for that year have been paid. Wealth Boosters will be allocated as extra units at the end of every 5th policy year starting from the end of the 10th policy year. Each Wealth Booster will be 3.25% for Regular Pay Policies and 1.5% for Single Pay Policies of the average of the Fund Values on the last business day of the last eight policy quarters.
Unlike traditional products, Unit Linked Insurance Products are subject to market risk, which affects the Net Asset Values and the customer shall be responsible for his/her decision. The names of the Company, Product names or Fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns.
^^ Tax benefits of ₹ 46,800/- under Section 80C is calculated at the highest tax slab rate of 31.20% (including cess excluding surcharge) on life insurance premium under Section 80C of ₹ 1,50,000/-. Tax benefits are subject to conditions under Sections 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Service Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.
~ Under this benefit, following the date of death of the life assured, provided all due premiums have been paid, units equivalent to the instalment premium will be allocated by the Company on the subsequent premium due dates. This benefit is not applicable for the One Pay option. On the death of the Life Assured, the following conditions apply:
- The Fund Value including Top-up Fund Value, if any, will remain invested in the respective funds and portfolio strategies as on the date of death of the Life Assured.
- Only the Fund Management Charge and Policy Administration Charge will be levied. Units will be allocated as if Premium Allocation Charges are being deducted. Life Insurance Cover will not apply and mortality charges will not be deducted.
- The policy cannot be surrendered. No policy alterations will be allowed. The Nominee will not be eligible for making partial withdrawals, paying top-up premiums, performing switches, renewing Automatic Transfer Strategy (ATS), redirecting premium, effecting a change in portfolio strategy, opting for settlement option, increasing or decreasing premium payment term, increasing or decreasing Sum Assured, increasing or decreasing policy term.
 Life cover is the benefit payable on the death of the life assured during the policy term.
ICICI Pru Smart Life UIN: 105L145V07