In Unit-linked plans, the investment risk in the investment portfolio is borne by the policyholder

A proper financial plan ensures financial support at every milestone of your child's life. Child insurance plans are specially structured to meet a child's financial needs. Hence, to help your child fulfil all their life goals, it’s advisable that you invest in a child plan.

However, before you opt for a child insurance, you need to understand the full scope of such insurance policies. Here are the benefits of a child insurance plan:

  • Financial protection

    Your income provides your child with every comfort and security in life. However, in case of an unfortunate event that causes the financial support to stop, a child plan acts as a safety-net. It offers life cover~ providing a lump sum payout in case of eventualities. This sum of money is specified when you buy the policy and can cover your child's needs in their growing years
  • Investment component

    Along with life cover~, child insurance plans also provide an investment component. And ULIP child plans enable you to leverage the capital market's potential for high returns

    As per the Ministry of Statistics and Programme Implementation, India's inflation rate from 2012 to 2020 averaged at 6.05%. [1] Such data shows that investing in the equity market can bring inflation-beating returns. And ULIPs act as a bridge between such tax-saving equities and your investment goals

    You can also spread your investments across equities, debt bonds, or hybrid funds, as per your risk-bearing capacity. Such diversification minimises the effect of market volatilities. Moreover, if your funds don't give expected returns, you can switch to other better-performing funds
  • Lump sum amount on maturity

    Child plans offer a lump sum amount as maturity benefits at the end of the policy term. You can select a maturity date as per the time frame matching your child's future need for funds. Throughout the tenure, your investment grows into a tidy corpus, enough to finance your child's aspirations

    However, child policies also offer a unique feature. Even if an unwanted event occurs and the insurer pays the benefit, the plan does not expire. The insurance provider waives off all future premiums. The funds continue to grow until maturity. When your child is ready for college admission or other key life-stage events requiring funds, they receive the maturity proceeds

    This feature is a distinct advantage over direct investments in mutual funds. In the case of an unforeseen incident, further investments in the policy stop in the direct method. In case of a child insurance plan, the insurer continues to invest on your behalf. Thus, with these plans, exigencies cannot upset your child's potential for growth
  • Partial withdrawals

    ULIP child plans allow you to withdraw a part of your funds to meet your child's urgent requirements. After the lock-in phase, you can cash out some of your units and pay for school fees or sudden medical expenses, if any
  • Tax* benefits:

    Child plans are life insurance policies. Thus, the premiums are eligible for tax benefits. Under Section 80C of the Income Tax Act, 1961, you can claim deductions up to ₹ 1.5 lakh for your child insurance premiums

    Also, the payouts are exempt subject to Section 10(10D). This facility ensures that your child's funds are not eroded by taxation


A child plan is a comprehensive plan which has a life cover~ that offers your child financial stability, protection2, and support to fulfil their dreams. ICICI Pru SmartKid ULIP1 is one such child-specific insurance plan. It offers a host of benefits, which include:

  • Two portfolio strategies5 to suit your financial needs
  • A life cover~ providing a fixed sum assured2 that is paid to your child in case of an unwanted event during the policy term
  • Waiver of premium in case of an unfortunate event
  • Lump sum amount paid at maturity of the policy to fund your child's long-term life goals
  • Additions to your funds as rewards3 for staying invested
  • Partial withdrawals4 free of cost

However, to take full advantage of all the benefits of a child plan, you should start investing early. It lets your money grow with the power of compounding. Long-term investments in ULIPs also help overcome fluctuations in the capital market, providing overall growth for your funds. Hence, consider investing in the ICICI Pru SmartKid child plan soon to safeguard your child's bright future.

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* Tax 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 Services Tax and cesses, if any, will be charged extra, as per applicable rates. Tax laws are subject to amendments from time to time. Please consult your tax advisor for details before acting on the above.

1 Unit Linked products are different from traditional insurance products and are subject to the risk factors.
The premium paid in ULIPs are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of funds and factors influencing the capital market and the insured is responsible for his/her decisions. ICICI Prudential Life Insurance is only the name of the Life Insurance Company and Smart Kid Solution is only the name of the unit linked insurance contract and does not in any way indicate the quality of the contract, its future prospects and returns.
Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the Insurance company.
The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

2 Sum Assured is the fixed minimum amount your family receives in your absence.

3 Wealth Booster: Each Wealth Booster addition will be equal to 3.25% of the Fund Value average* in the Regular and Limited Pay options and 1.5% in One Pay option. This will also include additional Fund Value from Top-ups, if any. The additions are made once in 5 years starting from the end of the 10th policy year, which means for a policy term of 25 years, Wealth Boosters will be allocated four times.
Fund Value Average is the average of the Fund Values on the last business day of the last eight policy quarters where Fund Value is the total value of your money that is invested in equity and debt fund of your choice.
In One Pay option, you can choose the number of years for which you wish to pay premiums. You can opt for either the One Pay option (One time lump sum premium payment) or the Regular Pay option (Regular payment of premiums throughout the policy term).
Top-up is any extra amount that you can invest and add to your Fund Value .

4 Provided monies are not in DP Fund. You can make an unlimited number of partial withdrawals as long as the total amount of partial withdrawals in a year does not exceed 20% of the Fund Value in a policy year. DP Funds refer to Discontinued Policy Funds and consist of money from the lapsed policy. Partial withdrawal is available on or after 5 policy years

5 Two portfolio strategies:

  • Fixed Portfolio Strategy: Option to allocate your savings in the funds of your choice from a diverse suite of funds
  • LifeCycle based Portfolio Strategy 2: A unique and personalised strategy to create an ideal balance between equity and debt, based on your age


[1] India Inflation Rate

~ Life Cover is the benefit payable on the death of the life assured during the policy term.

ICICI Pru Smart Life (unit-linked non-participating individual life insurance plan) - UIN: 105L145V08


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