Parents can go to great lengths to give 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 that extends till college. This is why a part of your financial planning should be targeted towards a 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 the picture for the benefit of your children.
Savings plans are plans built to accomplish the goal of funding long-term requirements for your child, such as higher education, marriage, etc. But what is unique about The SmartKid plan under ICICI Pru Smart Life 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 most effectively.
The SmartKid plan under ICICI Pru Smart Life 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 savings gives financial protection to your child and relieves the burden of paying premiums if the unfortunate event strikes`
. This plan can also let your savings grow$
over the years so that you can have a good amount of corpus by the time the child is ready to go to college. The plan also provides loyalty benefits for staying invested for a long term^
as well as liquidity in the form of partial-withdrawal after completing 5 policy years*
. You also save on taxes#
each year on insurance premiums paid under Section 80 C
and on payouts received on maturity subject to section 10(10D) of the Income Tax Act, 1961.
The flexibility to switch and choice of funds are some other benefits that make The SmartKid plan under ICICI Pru Smart Life a flexible plan for parents wanting to secure their child’s dreams and empower them for any future events. ICICI Prudential also provides you, along with other options, a personalized strategy based on your age. This strategy relieves you of any burden to manage your funds and allocates it appropriately creating an ideal balance between equity and debt, based on your age. Hence, even parents who are not too well versed with the art of investing can rest assured that their investment is managed effectively. And they can generate the corpus to secure their child’s future.
` The benefit applies if all the due premiums have been paid.
$ Past performance is not indicative of future performance.
* 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.
# Tax benefits of ₹46,800 u/s 80C is calculated at highest tax slab rate of 31.20%(including cess excluding surcharge) on life insurance premium u/s 80C of ₹1,50,000. 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 details, before acting on above.