In ULIPs, the investment risk in the investment portfolio is borne by the policyholder
A sound financial plan is essential to provide your children with a secure future. It is important to make investments basis your children's dreams and future cash flow requirements. You must also time the investments in such a way that the returns are received during the major milestones of your children’s lives, when the funds are needed most.
Here's a guideline on how you can provide for your children's needs.

Benefits of financial planning for your children

Financial planning for your children is an important aspect of securing their financial future. This can help you stay financially prepared for the expenses towards your children and ensure that they have the necessary resources to pursue their dreams. It provides them with a sense of security and stability.

Financial planning for your children can help you with the below:

  • Staying covered for expenses towards primary and secondary education

    Expenses towards your children’s primary and secondary education can be significant. These may include their school fees, tuition fees, expenses towards uniforms, books, extra-curricular activities, and more. Planning for these expenses in advance can enable you to stay financially prepared for your children’s education needs.
  • Supporting higher education

    You will need additional funds as your children pursue higher education. Expenses towards higher education may include college fees, travel, boarding, books, study equipment, such as a laptop, and more. With the right financial planning, you can ensure that your children have the financial support they need to pursue their dreams without worrying about the costs.
  • Beating inflation

    Inflation is the increase in the cost of goods and services. It is important to stay prepared for inflation as it leads to an increase in your expenses, which can affect your budget. Investing in the right plan can help you beat inflation and continue to stay financially prepared, without worrying about rising costs. This way, your children can lead their preferred lifestyle, no matter what.
  • Supporting your children’s interests/dreams

    Your children would have interests and dreams that they want to pursue. They may like to learn a musical instrument or play a sport. They may also like to travel, paint, or learn dancing. The right financial planning can help you support their interests and dreams. This can help them grow as individuals and pursue their passions in life
  • Covering future expenses related to marriage

    You need to save adequately for the expenses towards the marriage of your children. These expenses may be significant, depending on how you plan the marriage. Financial planning for children can help you save money for these expenses and stay worry-free.


Start planning early

An earlier start in investing for your children's future improves the odds of higher returns. Here are the reasons:

  • The power of compounding

    The interests generated from your investments get added to the original amount invested in the first year. The base amount for the next cycle thus becomes higher than your original investment. The cycle repeats every year, leading to significant growth in your wealth. Therefore, the longer you invest, the higher are the profits earned.
  • Reduced effect of market volatilities

    Financial markets often fluctuate. But with a long-term financial tool, market volatility is smoothened in the long run. This helps in giving better returns on the investment over a period of time.
  • Nominal investments

    The returns from a financial plan depends directly on how long one is invested in it. Therefore, a small amount of money, invested regularly, can grow to a large sum over a period of time.

Evaluate children's future needs

You need to support your children until they start earning. Hence, you should consider every expense that may arise in the future, to save adequate amounts for them.
In addition to the basic requirements of your child, remember inflation when you calculate the funds needed for your children's future. Preparing for inflation will help you plan better for the future value of costs.

Secure your children with life insurance

Life insurance is a great financial instrument that will help to secure your children's future. ULIPs are ideal for long-term goal-based investments. It is a unique investment instrument that provides chances of higher profits along with the added protection of life insurance. You can select your investment channels basis your risk appetite and switch funds if they underperform, thereby maximising gains.
Opt for child plans designed to support children's needs with premium waiver benefits. This ensures that in case of an unfortunate event, your children receive the payout without having to pay the future premiums till the end of the policy term. Hence, they will have enough funds to shield them from financial shortfalls in your absence.

Prioritise goals

A secure future depends on being financially prepared for the key milestones of your children’s lives, such as college admission, marriage, and buying property. You can better manage the funds if you prioritise the goals and accordingly create separate investments for each need.
Parents often consider children's education as the top-most priority. An education cost calculator can help you find out the amount you need for your children's education in the future.


Child plans are ideal for ensuring funds for your children's future needs. Many new-age policies offer multiple features which will help grow your investments and secure educational funds for your children. You can invest small sums regularly without having to bear the burden of a lump sum investment. Thus, when your children are ready, a large amount is also ready to fund their goals. Invest today in the right financial plan to fulfil the dreams of your children.

1. What are child plans?

Child plans are life insurance plans that help provide financial security for your child's future. They help you save for your child’s financial goals such as higher education, marriage, starting a new venture and more. They also offer a life cover to protect your child financially in case of an unfortunate event.

2. Which plan is optimal for my child's future?

A child plan can be a good choice to secure your child’s future as it provides the dual benefit of financial security for your child and growth of money. However, it is important to choose a plan that best suits your needs. Some important factors to consider are - the amount of life cover, fund options, flexibility of the plan and other benefits that the plan offers. Additionally, you must align the chosen plan with your child's future needs, age and aspirations to determine the best child plan for you.

3. What are some investment options for my child's financial planning?

There are several investment options that can help you with planning for your child’s financial future. You can choose the plan that best suits your needs depending on your risk appetite and the specific goals you have in mind. You can consider buying a child plan as it enables you to save for your child's future systematically while also providing financial security to your child in case of any unfortunate event. You can also explore government-backed options like Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY). Alternatively, you can choose market-linked products such as mutual funds and stocks.

4. Is it important to plan your child's future at an early age?

Planning for your child’s future is crucial. The sooner you start, the better it is.

  • The earlier you invest; the more time you give your money to grow. Your money can benefit from the power of compounding, helping you earn higher returns
  • You can minimise risks associated with market fluctuations if you invest for a longer period of time
  • You get the flexibility to make smaller investments over time, making it easier on your pocket

When you start early, you have more control over your finances. This helps you ensure your child’s dreams and goals are fulfilled, no matter what!

5. How can you decide the right child plan for your child's future?

It is always advisable to choose your plan basis your child’s needs and goals. You must calculate the approximate amount you would need to fulfil the same. Factors such as inflation must also be considered. Additionally, before choosing a child plan, calculate the time frame in which you would require the money.

You must also ensure that the plan provides a large life cover* to provide financial security in case of an uncertainty.


6. How does inflation affect future education, marriage and other expenses for children?

Inflation is the increase in the cost of goods and services over a period of time. This means to purchase the same amount of goods and services, you will have to pay more. Inflation can significantly increase the amount you would need for future expenses such as your child's education, marriage and other financial goals.

It is important to invest in a plan that can help you keep up with inflation. This ensures that your investments grow over time, allowing you to keep up with the rising cost of living and meet your child's financial goals.

7. What are the benefits of the SmartKid with ICICI Pru SmartLife plan?

SmartKid with ICICI Pru SmartLife1 offers several benefits that can help you secure your child's future. The plan helps you grow your money and save for your child’s future goals. You can choose the amount you want to invest in the plan as premiums, as per your requirements. The returns also include rewards in the form of loyalty additions and wealth boosters2 added by the company from time to time for staying invested. It also provides a life cover3 that can help secure your child's financial needs even in case of an unfortunate event.

This plan also offers Smart Benefit4. With this feature, all future premiums are waived off in case of an unfortunate event during the tenure of the plan. This ensures that your child continues to receive the benefits from the plan, no matter what! The plan also offers tax5 benefits on the premiums paid and on the amounts received under the policy as per the prevailing tax laws.


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1 In ULIPS, investment risk in the investment portfolio is borne by the policy holder
2Loyalty additions are added every year from the sixth year of the purchase of the policy as a reward for staying invested. Wealth boosters, are added once every five years, starting from the tenth year of the purchase of the policy. Both loyalty bonuses and wealth boosters are added to the plan only after all premiums for the period are paid
3Life cover is the benefit payable on death of the life assured during the policy term
4Under smart benefit, the company pays the future premiums on your behalf in the form of units on the due date, in case of an unfortunate event. Smart Benefit is valid for regular premium policies and applies only if all due premiums have been paid
5Tax benefits under the policy 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 more details.
ICICI Pru Smart Life UIN: 105L145V08
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