ICICI Prudential Child Plan

What are ICICI Pru Child Plans?

ICICI Pru Child Plans are a range of life insurance and savings products aimed at helping parents accumulate a financial corpus for their child’s future. These plans typically include features such as life cover on the policyholder, investment-linked options or guaranteed returns, waiver of future premiums in case of unfortunate events, and systematic payouts. They are designed to balance protection and wealth creation aligned with the evolving needs of children’s education and life goals.

Benefits of ICICI Child Education Plan

Listed below are the benefits of child education plans by ICICI Prudential: 

• Provides life cover ensuring financial protection for the child in case of the parent's demise.

• Offers waiver of future premiums on the parent’s death, so the plan continues without additional payments.

• Helps accumulate a lump sum maturity benefit for a child's education, marriage, or key milestones.

• Offers a choice of investment options, including market-linked funds for potential higher returns or guaranteed return options.

• Flexibility in premium payment with yearly, half-yearly, or monthly modes.

• Possibility to add riders for additional coverage like accidental death or critical illness.

• Offers tax benefits on premiums paid and maturity proceeds as per applicable tax laws.

• Provides milestone benefits with extra payouts at significant stages in the child's life.

• Allows premium top-ups to boost savings.

• Enables systematic withdrawals for planned money flow toward child’s needs.

• Offers flexible fund selection catering to risk appetite and changing market conditions.

Details of ICICI Pru Child Plan

Below are the details of investment plans by ICICI Pru for children: 

1. ICICI Pru Smart Kid Assure

   A market-linked child insurance plan under the ICICI Pru Signature Assure umbrella that combines life cover with potential wealth creation through market-linked returns. It offers features like no premium allocation charges, systematic withdrawals, waiver of future premiums upon the life assured’s death, and flexibility to invest more through top-ups.

   Features and Benefits of ICICI Pru Smart Kid Assure

   • Market-linked Returns: Potential to grow wealth through investment in capital markets; returns depend on market performance.

   • Zero Premium Allocation Charges: All premiums invested with no allocation charges.

   • Systematic Withdrawal Plan: Option for regular payouts via systematic withdrawals after the 5-year lock-in period.

   • Life Cover: Sum assured payable on death of the life assured during the policy term.

   • Waiver of Premium: Future premiums waived if the life assured passes away, ensuring the plan continues for child’s benefits.

   • Family Income Benefit Option: Regular annual income to family in case of death of life assured, if opted.

   • Top-ups Allowed: Save more by adding top-up premiums during the term, except the final five years.

   • Tax Benefits: Deductions on premiums and maturity proceeds as per current tax laws.

   • Partial Withdrawals: Allowed after 5-year lock-in period for unforeseen expenses

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2. ICICI Pru Smart Kid Guarantee

   ICICI Pru Smart Kid Guarantee is a child savings plan that provides guaranteed income, life cover, and a waiver of future premiums in case of unforeseen events. It combines ICICI Pru GIFT Pro with a Waiver of Premium Rider, ensuring financial security for a child’s education and goals with flexible MoneyBack benefit options.

   Features and Benefits of ICICI Pru Smart Kid Guarantee

   • Guaranteed Returns: Assured income for the child’s goals through the combination of two products: ICICI Pru GIFT Pro and ICICI Pru Non-Linked Waiver of Premium Rider.

   • Life Insurance Cover: The policy provides death benefit throughout the term.

   • Waiver of Premium: All future premiums are waived in case of death, terminal illness, critical illness, or accidental permanent disability (according to the chosen option).

   • Flexible Income Options: Choose between level (constant) or increasing (5% yearly) guaranteed income during the payout period.

   • MoneyBack Benefit: Option to receive up to 100% of total premiums paid as lump sum in any chosen year after policy term.

   • Tax Benefits: Premiums and proceeds eligible for tax deduction/exemption under prevailing laws.

   • Comprehensive Coverage: Plan ensures child’s future goals like education or marriage are protected, even if something happens to the parent. 

3. ICICI Pru Signature Plan

   ICICI Pru Signature is a market-linked, savings and protection-oriented unit linked insurance plan (ULIP) designed to provide both investment growth and life cover. Below are its main features, benefits, and eligibility criteria, as presented in the official brochure.

   Features and Benefits of ICICI Pru Signature Plan

   • Life Cover: Provides insurance protection for the entire policy term to financially secure the family if the policyholder is not around.

   • Flexible Portfolio Management: Choice of 4 portfolio strategies and a wide selection of equity, balanced, and debt funds to suit various investment needs and risk profiles.

   • Wealth Boosters: Additional allocation of extra units to the policy at the end of every 5th year, starting from the 10th policy year, enhancing long-term savings.

   • Return of Charges at Maturity: On maturity, the total of mortality charges and policy administration charges deducted are added back to the fund value (except for the Whole Life option).

   • Systematic Withdrawals: Facility to withdraw money regularly from the policy after the 5-year lock-in period via a systematic withdrawal plan (SWP).

   • Partial Withdrawals: Unlimited, free partial withdrawals are allowed after 5 years, up to 20% of the fund value annually.

   • Settlement Option: Option to receive maturity benefit as a lump sum or as periodic payouts over one to five years post-maturity.

   • Top-up Facility: The ability to make additional investments (top-ups) during the policy term, subject to restrictions.

   • Unlimited Switches: Free, unlimited switches between funds (within certain portfolio strategies) and up to four changes to investment strategies per policy year.

   • Customizable Policy Terms: Options for limited pay, regular pay, and whole life (coverage up to age 99) policy terms.

   • Tax Benefits: Premiums paid and benefits received may be eligible for tax benefits as per prevailing laws.

   • No Premium Allocation Charges: The entire premium is allocated to the funds chosen by the policyholder.

Eligibility Criteria of ICICI Pru Child Plan 

Other Investment Plans by ICICI Pru

Over the years, ICICI Prudential has updated its product lineup to better serve customers, which has led to the discontinuation or replacement of certain plans and variants. Below is the list of plans which fall under the same category: 

• ICICI Pru Guaranteed Income for Tomorrow (GIFT): This plan has been discontinued. It is no longer available for new purchases, although existing policyholders may continue to receive their benefits as per policy terms.

• ICICI Pru Smart Kid Plan: The core ICICI Pru Smart Kid Plan remains available. However, certain earlier variants or specific associated funds under this plan have been discontinued or replaced over time. New and improved child plans are regularly launched to meet changing customer needs and regulatory updates.

Summing It Up

The ICICI Child Plans offer a comprehensive solution for securing a child's future, encompassing savings, insurance, and investment components. With its flexible features and tailored benefits, it stands as a reliable choice for parents seeking financial stability and growth for their children.

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