Education plays a key role in shaping your children’s future. Education is of two types - the kind that happens in school and the kind that happens outside of it. To ensure that your children get the desired education, it is important to invest in the right child plan. Here are some tips that you can consider while investing in a child plan.

Importance of investment for child education

Today, children no longer restrict themselves to traditional career choices. Your children may want to become a chef, an artist, or a pilot, or may choose any career based on their interest. It is important for you to be financially prepared to provide your children with the desired education to be able to fulfil their dreams. The amount that you will require will largely depend on their career choice. The increase in costs of education1 due to inflation must also be taken into consideration while arriving at the final amount. Investing in the right child plan at the right time can help you grow your money to secure your children’s future.

Things to consider before investing for your children's education

Finding a suitable investment for your children’s education is crucial. So, make sure to keep the following things in mind before you start investing for your children’s education:

  • Invest early - The rate of inflation and the cost of education are on the rise. Given the rise in education costs, it is important for you to start investing in an appropriate plan as early as possible. Investing at an early age gives you more time to accumulate a larger amount that can benefit your children later
  • Review your existing investments - Before you invest in a child investment plan, look at other investments and assets that you might have in your portfolio. See how these assets can help you achieve your children’s education goals. Now try to analyse how much more you need to achieve your objective. You can then pick a child investment plan accordingly
  • Invest in a plan that fits your requirements - Research the market for different types of plans that can offer you suitable returns to cover the costs of education. Look at the risk involved, the features offered, and the returns before choosing an education plan. Look for a plan that fits your budget and is also able to generate enough money for your children’s future needs
  • Tax* benefits - Tax* deductions can help you save a significant amount of money over the years. These savings can be further invested and contributed to your children’s needs. So, look for a plan that offers tax* deductions under the Income Tax Act, 1961. The amount you save on taxes increase your returns from the plan


There is a need to be financially prepared to fulfil your child’s dreams. A ULIP like ICICI Pru Smart Kid Plan can help to ensure that your children are free to follow a career of their choice. This plan offers you the choice to invest in equity, debt or balanced fund^, or a mix of these as per your risk appetite. Contributions made by the company in the form of wealth boosters~ and loyalty additions~~ for staying invested further increase the returns from the plan. Additionally, the in-built life cover` secures your children financially even in case of an unfortunate event. This plan can help to ensure that your children’s future is secured, no matter what.


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*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 more details.

1 How to plan for child education expenses -

^ Past performance is not indicative of future performance.

~~ Loyalty Additions: Loyalty Additions will be allocated as extra units at the end of every policy year, starting from the end of the sixth policy year, provided monies are not in DP Fund. 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.

~ Starting from the end of 10th year, Wealth Booster will be allocated as extra units to your fund value once every 5 years. Wealth Booster will be a percentage of the average of the Fund Values on the last business day of the last eight policy quarters. The Wealth Booster percentage would be 1.50% for Single Pay and 3.25% for Regular Pay and Limited Pay policies.

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

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



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