What are Child Education Insurance Plans?

Child Education Insurance Plans are insurance plans that take care of your protection and savings needs for securing the future of your children. As a parent, one of your most important goals would be to make sure that your children have a bright future and lead their lives comfortably. These plans can help you achieve this by saving for your children’s higher education at a prestigious university.

In our Child Education Insurance Plan, you pay premiums for a specified period (monthly, half-yearly, yearly or single pay). Once the policy term ends, you receive a lump-sum amount called the Maturity Benefit. In case of an unfortunate event during the policy term, the company offers your nominee the life cover amount. The company also waives the future premium payments* for the remaining policy term to ensure that your children’s future is always secure. This benefit is available, provided all due premiums are paid.

Why do you need a Child Education Plan?

  • A Child Education Plan is an insurance policy that offers protection as well as an opportunity for saving money to ensure a secure future for your child
  • It makes sure that your child receives the education he/she desires with a lump-sum payout at maturity or when any unfortunate event occurs to you
  • It acts as a safety net to make sure that your child’s education does not get affected even if you are not around. In case of an unfortunate event, your child receives the life cover

Features of a Child Plan

Generally Child Education Plans provide the following features-

  • Lump-sum benefit: The plan provides your children with a lump-sum benefit in the case of your death within the policy term
  • Waiver of premium: Your child won’t be burdened with premium payments as the company pays it on your behalf. Thus, the policy continues to exist
  • Partial withdrawals+: You can access your funds during the term in the form of partial withdrawals, subject to conditions. This takes care of your child’s different educational milestones
  • Tax benefits: Such a policy offers tax benefits to the policyholder under section 80C of the Income Tax Act^
  • Loyalty Addition** and Wealth Booster**: These plans may also offer benefits such as Loyalty Addition and Wealth Booster, to help you grow your money without you needing to invest extra money

How much should you invest in a child plan?

Education is the key to a bright future. Regardless of what stream or career your child chooses, ensuring that they go to a good school and college is your prime responsibility as a parent. Considering the fact that India is a developing country, the children of today have a massive role to play in the growth of the nation tomorrow. All of this can be achieved with a proper education. Not only does education open the realms of a financially secure life but can also help children develop an open mind and live a more mentally and physically balanced life.

However, the cost of education can be overbearing in some cases. As per a study conducted in 2019, it was found that the cost of education from primary classes up to post-graduation was ₹ 8,331 for a year for each student. This is only a general estimate that includes all types of schools and colleges across the country. The fee for private schools and colleges is a lot more than a public or government one. Professional courses such as engineering, medicine, and others can be even more expensive. If you combine these costs with inflation, the final figure will drastically increase further. It is hard to cover these costs with a limited source of income.

That is why, with a life insurance plan, you can ensure that your child’s future and dreams are financially secured, even in your absence.

COMP/DOC/Nov/2020/411/4734

Types of Child Plans

1. Child ULIPS

A Unit Linked Life Insurance Plan is an insurance policy that doubles up as an investment. A part of your money goes towards protecting your child just like the standard child education plan. The remaining part is invested in a mix of equity and debt.


2. Child Savings Plans

Child Saving Plan allows the policyholder to invest in the plan without any market risk. It is a multi-faceted plan that provides life cover, maturity benefits and tax benefits, all in one single policy.

How do Child Plans work?

Let’s consider the example of Mr. Kapoor, who has taken ICICI Pru Smart Kid , a 10-year insurance policy for his child. Now he will have to pay a premium monthly, half-yearly, yearly or in a single-pay depending on his selection of premium mode. In the case of Mr. Kapoor's death in the 7th year of the policy, his nominee will still receive the entire life cover amount. In case Mr. Kapoor survives the policy tenure, he may choose to use the amount in parts for important milestones of his child's educational journey, or he may choose to get a lump-sum payout at the end of the term.

Tips to consider while buying a child plan:

Here are a few tips you can consider while purchasing a plan for your child:

​1. Start Early

Starting early provides you the benefit of growing your money over a long term. The interest earned over time gets re-invested to generate more returns. This is the advantage of the power of compounding. This provides you a larger amount that can be used to fulfil your child’s dreams.

2. Look for the Premium Waiver Benefit

Under this benefit, in case of an unfortunate event with the policyholder, all future premiums for the policy will be paid by the insurance company. This ensures that the policy continues and the dreams of the child are fulfilled, no matter what.

3. Look for the Partial Withdrawal+ Feature

Some plans offer the flexibility to withdraw upto a certain amount from the plan during the tenure of the policy. This feature helps you stay financially prepared for various milestones of your child, such as college admissions, wedding, and more. This also helps you stay prepared for any financial emergency.

4. Choose an Investment Fund as per your Needs

Some child plans provide you the option to choose from various funds$ – equity, debt, or a mix of both as per your risk appetite. Equity funds are high-risk funds that offer higher returns. Debt funds, on the other hand, offer stable returns. It is important that the child plan you choose provides you with options that suit your needs.

COMP/DOC/Nov/2021/211/6854

 

Secure your child's education with us

Give your child’s dreams the power of guarantee with the benefit of life cover

Guaranteed Income for Tomorrow (GIFT)
  • Benefits received may be tax-free as per prevailing tax laws^
  • Life cover
  • Tax^ savings on premiums paid under section 80C
  • Up to 3.5% Additional Maturity Benefit~ on buying online

Grow money for your child’s dreams while also protecting them with a life cover

IN UNIT LINKED PLANS, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

ICICI Pru Signature
  • Tax-free^ market-linked returns
  • Partial/regular withdrawals+ without any cost
  • Life cover till 99 years of age
  • Tax^ savings on premiums paid, under section 80C
  • 0% premium allocation charge++ on buying online

The SMART way to secure your child’s future with the benefit of life cover

ICICI Pru Smart Kid Solution
  • Tax-free^ market-linked returns
  • Unlimited partial withdrawals+ without any cost
  • Policy continues with premium waiver* in case something happens to you
  • Life cover
  • Tax^ savings on premiums paid under section 80C
W/II/4519/2021-22

✅ What is Child Education Plan?

A Child Education Plan is an insurance plan that helps you protect your savings and safeguard your child’s future. The plan provides you with options to invest your savings and then use them for your child’s education, in parts or one single withdrawal.

✅ Is ICICI Prulife plan suitable for child education?

The ICICI Pru Smart Kid Plan under ICICI Pru Smart Life Plan works as a great plan for people who want to secure their children’s education even when they are not around. The plan provides children with life cover in case of policyholder's death. Otherwise, the plan offers lump-sum tax-free^ payouts at the end of the term subject to conditions under section 10(10D)

✅ Can we choose add-ons or rider benefits while purchasing a child education plan?

Yes, you can choose as many add-ons or rider benefits while purchasing a child education plan. In most plans, you have to pay an extra premium to get the additional rider benefits. However, with the ICICI Pru Smart Kid plan, you get rider benefits inbuilt with the plan along with the dual benefit of growing your investment and life insurance protection. For instance, the plan provides you with a waiver of premium benefit^^. In case of an unfortunate event, this benefit ensures that all future premiums are paid by the insurer so that your children complete their education without any worry.

Another such rider is the unit-linked accidental death benefit~~. Under this rider benefit, in case of an unfortunate event with the policy holder due to an accident during the tenure of the policy, an additional amount is paid to the child over and above the base cover amount provided by the policy.

✅ What happens to the future premiums of the child education plan if the policyholder is no more?

One of the many benefits of child education plans is the waiver of premium benefit^^. It comes inbuilt with our child education plan, the ICICI Pru Smart Kid Plan. If the policyholder of the plan is no more, this benefit ensures that the insurer pays all the future premiums on behalf of the policyholder. This will allow the policy to continue even in case of any unfortunate event. This ensures that the child’s education continues, no matter what.

✅ What is Child Life Coverage?

A Child Life Coverage is a predetermined lump-sum amount that the nominee receives in the case of policyholder's death within the policy term.

✅ How to buy Child Insurance Plan online?

It is very simple to buy a Child Insurance Plan online with iciciprulife.com. Just click on ‘Buy Now’. Select your desired amount, your preferable premium mode and fill in your details.

✅ When can money be withdrawn from a child insurance plan?

Here are the ways to withdraw money from a child insurance plan:

  • Partial withdrawals can be made from a child plan depending on the plan chosen. For instance, the ICICI Pru Signature plan and the ICICI Pru Smart Life plan give easy access to money for unforeseen financial circumstances during the policy term. Up to 20% of the fund value can be withdrawn after completion of the 5th year from the purchase of the policy+
  • These partial withdrawals+ can be made free of cost with no penalty. They also do not impact the sum assured amount. Hence, even if a partial withdrawal from the plan has been made previously, the child stays financially protected in case of an unfortunate event and receives the entire sum assured amount
  • The benefits received are also tax-free^ subject to conditions under Section 10(10D) of the Income Tax Act, 1961
  • ✅ Can a child plan be purchased for a 10-year-old?

    Yes, a child plan can be purchased for a 10-year-old. The money can be used at the end of the policy term for the child’s expenses and future needs. In case of an unfortunate event, the child will also receive the entire sum assured.

    However, it may be beneficial for the child if the plan is purchased sooner. Financial experts recommend investing in a child plan as soon as the child is born.

    ✅ Who is eligible to buy a child insurance plan?

    Here are the eligibility criteria to buy a child insurance plan.

    If the plan is being purchased with the child as the insured person:

  • The child must be a citizen of India
  • Various types of plans have their own minimum and maximum age at entry
    1. 1. ICICI Pru Signature for Child has a starting age of 0 years to a maximum of 60 years
    2. 2. Similarly, ICICI Pru Guaranteed Income for Tomorrow, a guaranteed return plan has a starting age of 3 years to a maximum of 60 years
    3. 3. ICICI Pru Smart Life plan has a starting age of 20 years to a maximum of 54 years#

    If the plan is being purchased with the child as the nominee:

  • The parent/legal guardian must be a citizen of India to buy the plan
  • Various types of plans have their own minimum and maximum age at entry
  • ICICI Pru Signature for Child has a starting age from 0 years to a maximum of 60 years
  • Similarly, ICICI Pru Guaranteed Income for Tomorrow, a guaranteed return plan has a starting age from 3 years
  • ICICI Pru Smart Life plan has a starting age from 20 years to a maximum of 54 years#
  • ✅ What is Child Education Plan?

    A Child Education Plan is an insurance plan that helps you protect your savings and safeguard your child’s future. The plan provides you with options to invest your savings and then use them for your child’s education, in parts or one single withdrawal.

    ✅ Is ICICI Prulife plan suitable for child education?

    The ICICI Pru Smart Kid Plan under ICICI Pru Smart Life Plan works as a great plan for people who want to secure their children’s education even when they are not around. The plan provides children with life cover in case of policyholder's death. Otherwise, the plan offers lump-sum tax-free^ payouts at the end of the term subject to conditions under section 10(10D)

    ✅ Can we choose add-ons or rider benefits while purchasing a child education plan?

    Yes, you can choose as many add-ons or rider benefits while purchasing a child education plan. In most plans, you have to pay an extra premium to get the additional rider benefits. However, with the ICICI Pru Smart Kid plan, you get rider benefits inbuilt with the plan along with the dual benefit of growing your investment and life insurance protection. For instance, the plan provides you with a waiver of premium benefit^^. In case of an unfortunate event, this benefit ensures that all future premiums are paid by the insurer so that your children complete their education without any worry.

    Another such rider is the unit-linked accidental death benefit~~. Under this rider benefit, in case of an unfortunate event with the policy holder due to an accident during the tenure of the policy, an additional amount is paid to the child over and above the base cover amount provided by the policy.

    ✅ What happens to the future premiums of the child education plan if the policyholder is no more?

    One of the many benefits of child education plans is the waiver of premium benefit^^. It comes inbuilt with our child education plan, the ICICI Pru Smart Kid Plan. If the policyholder of the plan is no more, this benefit ensures that the insurer pays all the future premiums on behalf of the policyholder. This will allow the policy to continue even in case of any unfortunate event. This ensures that the child’s education continues, no matter what.

    ✅ What is Child Life Coverage?

    A Child Life Coverage is a predetermined lump-sum amount that the nominee receives in the case of policyholder's death within the policy term.

    ✅ How to buy Child Insurance Plan online?

    It is very simple to buy a Child Insurance Plan online with iciciprulife.com. Just click on ‘Buy Now’. Select your desired amount, your preferable premium mode and fill in your details.

    ✅ When can money be withdrawn from a child insurance plan?

    Here are the ways to withdraw money from a child insurance plan:

  • Partial withdrawals can be made from a child plan depending on the plan chosen. For instance, the ICICI Pru Signature plan and the ICICI Pru Smart Life plan give easy access to money for unforeseen financial circumstances during the policy term. Up to 20% of the fund value can be withdrawn after completion of the 5th year from the purchase of the policy+
  • These partial withdrawals+ can be made free of cost with no penalty. They also do not impact the sum assured amount. Hence, even if a partial withdrawal from the plan has been made previously, the child stays financially protected in case of an unfortunate event and receives the entire sum assured amount
  • The benefits received are also tax-free^ subject to conditions under Section 10(10D) of the Income Tax Act, 1961
  • ✅ Can a child plan be purchased for a 10-year-old?

    Yes, a child plan can be purchased for a 10-year-old. The money can be used at the end of the policy term for the child’s expenses and future needs. In case of an unfortunate event, the child will also receive the entire sum assured.

    However, it may be beneficial for the child if the plan is purchased sooner. Financial experts recommend investing in a child plan as soon as the child is born.

    ✅ Who is eligible to buy a child insurance plan?

    Here are the eligibility criteria to buy a child insurance plan.

    If the plan is being purchased with the child as the insured person:

  • The child must be a citizen of India
  • Various types of plans have their own minimum and maximum age at entry
    1. 1. ICICI Pru Signature for Child has a starting age of 0 years to a maximum of 60 years
    2. 2. Similarly, ICICI Pru Guaranteed Income for Tomorrow, a guaranteed return plan has a starting age of 3 years to a maximum of 60 years
    3. 3. ICICI Pru Smart Life plan has a starting age of 20 years to a maximum of 54 years#

    If the plan is being purchased with the child as the nominee:

  • The parent/legal guardian must be a citizen of India to buy the plan
  • Various types of plans have their own minimum and maximum age at entry
  • ICICI Pru Signature for Child has a starting age from 0 years to a maximum of 60 years
  • Similarly, ICICI Pru Guaranteed Income for Tomorrow, a guaranteed return plan has a starting age from 3 years
  • ICICI Pru Smart Life plan has a starting age from 20 years to a maximum of 54 years#
  • W/II/4957/2021-22

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    * 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 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 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.

     

    ~ Additional Maturity Benefit is offered for online sales: For Lump Sum Plan option, 2.5% of Sum Assured on Maturity is applicable for Limited pay. In case of Single Pay in Lump Sum Plan option, 1% of Sum Assured on Maturity is applicable. For Income Plan option, 2.5% of Guaranteed Income is applicable. For Early Income Plan option, 3.5% of Guaranteed Income is applicable. For Single Pay Income Plan option, 1% of Guaranteed Early Income is applicable.

    ** Loyalty Additions are applicable from the 6th policy year onwards 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. 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 Limited/Regular Pay policies and 1.5% for Single Pay policies of the average of the Fund Values.

    $ Past performance is not indicative of future performance.

    ^ Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(10D),115BAC and other provisions of the Income Tax Act, 1961. Goods & Services tax & cesses if any will be charged extra as per prevailing rates. Tax laws are subject to amendments from time to time. Please consult your tax advisor for more details.

    + Partial withdrawals are allowed after the completion of five policy years provided monies are not in DP fund. You can make 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. The partial withdrawals are free of cost. DP Funds refer to Discontinued Policy fund and consists of money from lapsed policies.

    ++ There is no Premium Allocation Charges in Signature Online.

    Unlike traditional products, Unit Linked insurance products are subject to market risk, which affect the Net Asset Values & 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.

    ~~ Under this rider, additional life cover similar to that of base ULIP plan will be provided subject to maximum sum assured conditions.

    ^^ Company pays all due premiums in your absence provided all due premiums have been paid.

    # Applicable for One pay and Regular pay options.

    ICICI Pru Guaranteed Income For Tomorrow UIN 105N182V02

    ICICI Pru Signature UIN 105L177V03

    ICICI Pru Smart Kid Plan with ICICI Pru Smart Life UIN: 105L145V06.

    W/II/2316/2020-21

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