- 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 the future premiums are waived off in case of your death, provided all due premiums have been paid. ICICI Prudential Life will continue to allocate units as if the premiums are being paid. 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 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, when you are not around, the child’s education does not get affected.
- Control of Investment: You have a 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 the available funds, tax-free*.
- Emergency Withdrawal: There can be an emergency case where you may need funds immediately. The child education plan from ICICI Prudential can take cares of that by allowing you to withdraw up to 20%** of the fund value on completion of 5 policy years.
- Loyalty Additions: This child education plan reaps you the benefit of staying invested in the plan. It rewards you with Loyalty Additions^ and Wealth Boosters^ to boost your savings.
- Tax Benefit: Enjoy tax* benefits on the premiums you pay under section 80C and on maturity subject to 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 any 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 fulfilling 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 secured future is one of the greatest blessings you can give to your child!
1. What is the minimum instalment amount for Child Education Plan?
The minimum instalment amount for child Education Plan depends on the age at entry of the parent. For our ICICI Pru Smart Life plan with Regular Pay option, the minimum premiums at different entry points of age are as follows:
Age at entry between 20 and 49 years - ₹ 45,000 per annum
Age at entry between 50 and 52 years – ₹ 1,20,000 per annum
Age at entry between 53 and 54 years – ₹ 5,00,000 per annum
2. What documents are required for buying a Child Insurance Plan?
The documents required for buying Child Insurance Plan are the following:
- PAN or Form 60 if there is no PAN
- Officially valid document from any of the following – Passport, Driving Licence, Voter’s Identity Card issued by Election Commission of India, Job Card issued by NREGA duly signed by and Officer of State Government, Letter issued by National Population Register, or proof of possession of Aadhaar
- One recent photograph
3. What are things to consider while buying a Child Plan?
You need to consider the time period for which you need the Child Plan and the probable lump sum amount required for various milestones in your child’s career. Based on this and your premium paying capacity you can choose the appropriate plan as per your age eligibility. You can also consider paying a single premium or you can opt for regular premiums (payable monthly, half-yearly or yearly).
4. What is the right time to buy a Child Plan?
Buying a Child Plan at an early age allows you to get compounding benefits. This helps your money to grow for the longest period.
5. Are there any Income Tax Benefits under Child Insurance Plan?
Yes, you can avail income tax benefit^^ under Section 80C subject to conditions. The maturity proceeds are also exempt from tax under Section 10 (10D) provided you satisfy certain conditions in respect of quantum of premium as a percentage of sum assured.
** 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 affect 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 Rs. 46,800 u/s 80C is calculated at highest tax slab rate of 31.20%(including cess excluding surcharge) on life insurance premium u/s 80C of Rs. 1,50,000. Tax benefits are subject to conditions under Section 80C,10(10D), 115BAC and other provisions of the Income Tax Act,1961. Good 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 above.
|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 `46,800 on the Premium Paid|
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