Parents can go to great lengths for giving the best to their children. Right from the doctors to the schools in the city, it’s always nothing but the best for them. So what if the best comes at a higher price? Your investment and financial planning should be such that the best for your child is covered at all times. Investment for your children is undoubtedly, the most important investment you’d make in your lifetime.
The need arises when your kid is ready to start school and the costs attached to it starts to crop up, with other financial liabilities. This is a continuous need which extends through till college. You would have to save about 26 lakhs for a child hoping to be an engineer in the next 14 years, the calculation being conservative. Which is why a part of your financial planning should be targeted towards child’s education and it should begin early to build a corpus good enough, to pay off your child’s higher education. That’s when savings plans
comes into picture for the benefit of your children.
Savings Plans taken for the benefit of your children are plans built to accomplish the goal of funding long-term requirements for your child such as higher education, marriage, etc. But what is special about this plan is the life protection element along with the potential to grow your investment. This life cover acts as the investor and the guardian for your child’s future. The lump sum amount paid out to the nominee in the case of an unfortunate event and the continuity of the policy with all the premiums being paid by the company, ensures that your child’s future is protected in the most effective way.
The ICICI Pru Smart Life with SmartKid plan by ICICI Prudential Life Insurance
is a Savings Plan for the benefit of your child which provides you with these twin benefits of market linked returns and protection from eventualities of life. The investment gives financial protection to your child and relieves the burden of paying premiums if the unfortunate event strikes`
. You may also be fortunate to see the growth of your investment and corpus over the years by the time the child is ready to go off to college. The plan also provides loyalty benefits for staying invested for a long term^
as well as liquidity in the form of emergency withdrawal after completing 5 policy years*
. You also save on taxes each year with Section 80 C
and on maturity as per section 10(10D).
The control of investment
and choice of funds are some other benefits that make ICICI Pru Smart Life with SmartKid a flexible plan for parents who are looking to invest with a goal for securing their child’s dreams and empower them for any future events. ICICI Prudential also provides you along with other options, a customised option which relieves you of any burden to manage your funds and allocates it appropriate to your life stage and the proximity to your goal. Hence, even parents who are not too well versed with the art of investing can be rest assured that their investment is managed effectively and generate the corpus to secure your child’s future.
` The benefit applies if all the due premiums have been paid.
* Withdrawals are permitted provided monies are not in the DP fund.
^ Loyalty Additions are applicable from the 6th policy year onwards. This is 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 on the last business day of the last eight policy quarters. 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 Regular Pay policies and 1.5% for Single Pay policies of the average of the Fund Values on the last business day of the last eight policy quarters.