ICICI Prudential Smart Kid Plan is a Unit Linked child plan which creates an optimal corpus for the child by providing market-linked returns. Moreover, the plan secures the fund even if the insured dies during the plan term. To enhance the fund, there are two types of guaranteed additions added to the Fund Value.
Step 1 – the policyholder chooses the premium amount, the policy term and the premium payment term.
Step 2 – the policyholder then chooses to invest the allocated premium in any of the available 8 funds. The funds are Maximizer V, Multi Cap Growth Fund, Opportunities Fund, Bluechip Fund, Maximize India Fund, Multi Cap Balanced Fund, Income Fund and Money Market Fund.
Step 3 – the policyholder can make partial withdrawals, premium redirections or switch his investments if required. Top-up can also be made to increase the Fund Value.
Step 4- in case of death during the plan term, the death benefit is paid. Future premiums are waived and the plan continues till maturity.
Step 5 – if the insured survives the plan tenure, the maturity benefit is paid which is the Fund Value including top-up premium Fund Value. The benefit can be taken in lump sum or in instalments.
Aniket, aged 35 years, buys Smart Kid Plan for his child aged 5 years. The chosen term is 10 years and he pays regular premiums. The premium is Rs.50, 000 and the Sum Assured is Rs.5 lakhs.
Option 1 – Aniket dies during the plan tenure. The plan pays Rs.5 lakhs immediately to the appointee as the child is a minor aged below 18 years. Thereafter, the company pays the annual premiums towards the Fund Value till maturity. Loyalty Additions are added from the end of the 6th year and wealth boosters accrue in 10th year. On maturity, the Fund Value is paid.
Option 2 – if the plan matures and Aniket is alive, the Fund Value and any top-up premium Fund Value is paid. Aniket can choose to receive the maturity benefit in instalments too.
Aniket can make partial withdrawals, switch between funds, invest additional premiums through top-ups and also redirect future premiums to any other fund.
|Age at entry (in completed years)||20 years||54 years|
|Age at maturity (in completed years)||30 years||64 years|
|Term of the plan||Regular premium – 10, 25 years
Single premium – 10 years
|Premium paying options||Regular pay or Single Pay|
|Premium Paying term||Equal to plan term or once|
|Annual premium amount||Regular premiums:
Age 20-49 years – Rs.45,000
Age 52-52 years – Rs.1.2 lakhs
Age 53-54 years – Rs.5 lakhs
Age 20-54 years – Rs.48,000
Age 39-35 years if Sum Assured required is 10 times the premium paid – Rs.1.25 lakhs
|Sum Assured||Regular Premium:
If age is below 45 years – higher of 10 times the annual premium or 0.5*term*annual premium
If age is 45 years and above – higher of 7 times the annual premium or 0.25*term*annual premium
Single Premium – 1.25 times the single premium
If age is less than 35 years – 10 times the single premium
If age is 35 years and above – 1.25 times the single premium
In case of suicide committed within 12 months of inception or revival of the plan, the available Fund Value and any top-up premium Fund Value is paid.
A discount of 1% for regular premium plans and 0.5% for single premium plans is allowed in the first year’s premium if the plan is bought directly from the company’s website.
Loyalty Additions and Wealth Boosters are calculated as a percentage of the average Fund Vale available on the last working day of the last 8 quarters when the additions are being made.
Premiums paid are exempted from tax under Section 80C up to a maximum of Rs.1.5 lakhs. Death benefit received would be tax-free under Section 10(10D).
Surrender Value can be availed only after the completion of the first five policy years.
The beneficiary under the plan is the child. If the child is a minor when the insured dies and the plan benefits become payable, an appointee is authorized to collect the benefits on behalf of the minor child.