A one-time investment plan is one in which you make a one-time lump sum investment through the policy term. It provides you the benefit of the growth of your money along with a life cover1. A plan made keeping your child in mind will ensure that your child is financially prepared for all important milestones of his or her life.
Advantages of buying a one-time investment plan for your child
A child insurance plan, such as ICICI Pru Smart Life, with an option of one-time investment` can provide you with the below benefits:
Growth of money:You can invest your money in debt, equity or balanced funds as per your choice. This allows the plan to offer returns that can help beat inflation while keeping your investments safe
Secure your loved ones:These types of plans offer a life cover1 as well. This ensures your child is financially secure in case of an unfortunate event during the policy term
Wealth boosters^:This helps you grow your money without any additional investments. ICICI Pru Smart Life offers you wealth boosters^ which help add to your savings. These wealth boosters provide an additional 1.5% of the average fund value every five years
Easy access to money:At the end of 5 years, you can withdraw a part of your money to meet your requirements, if any. Withdrawing money at any stage does not affect the lump sum amount that your child receives in your absence. This ensures that you have easy access to your money while at the same time allowing the rest of your invested money to grow
Tax* benefits:Premium paid is allowed as deduction of tax up to ₹ 1.5 lakh per annum under Section 80C* of the Income Tax Act, 1961. Apart from this, the amount received on maturity will also be tax-free under Section 10(10D)* of the Income Tax Act, 1961.
Importance of a one-time investment plan for your child
Child's education:A one-time investment plan for your child can offer you returns which can account for inflation as well. This will ensure that you stay financially prepared to take care of your child’s educational needs
Protection against uncertainties:This type of plan provides you the benefit of a life cover1. This ensures your child is financially protected in case of an unfortunate event
Important milestones:This type of plan provides you the flexibility to make partial withdrawals at important stages of your child’s life. This will ensure you are financially better prepared for your child's key milestones like their higher education and marriage
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* 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 and Services 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.
^ 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.
1 Life cover is the benefit payable on death of the life assured during the policy term.
` The plan also provides options to invest monthly, half-yearly or yearly
ICICI Pru Smart Life (unit-linked non-participating individual life insurance plan) - UIN: 105L145V08.