ICICI Prudential Child Plans

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank Ltd. and Prudential Private Limited Company. Prudential Private Limited Company is a leading international financial service group having its headquarters in the United Kingdom. ICICI Prudential Life is one of the first private sector life insurance companies who after receiving approval from the Insurance Regulatory Development Authority of India (IRDAI) have begun its operation in December 2000. Amongst the entire private life insurers in the country, ICICI has enjoyed a dominant position for more than twenty years by offering world-class products and quality consistent services. The range of products offered by ICICI Prudential Life Insurance Company include Protection plans in the form of term plans, Child Plans, Savings and Investment Plans which are available in both conventional or ULIPs form and pension plans. With a wide range of products, the company strives to meet every individual’s insurance related requirement at a single source.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Why Child Plans?

Child Insurance plans have become very important because they specifically provide for one’s child’s future even in one’s absence. The inbuilt premium waiver rider ensures that the plan continues even after the parent’s death and the benefits accrue and when they are payable so that the benefits can be utilized for the purpose for which it was initially planned, i.e. for the child’s future. For example, an individual with a child currently aged 5 years buys a 20 year child plan which promises money backs at the 15^th, 17^th and 20^th policy anniversary. The policyholder has planned the money back periods to coincide with the child’s educational milestones and would receive the funds when the child reaches 20 years, 22 years and 25 years. The funds will be utilized to take care of the child’s higher education. If the insured dies, the plan will not be terminated. Future premiums will be paid by the company and the money-backs will be paid as and when promised. Thus, the money will be utilized only for the child’s education which was the actual rationale for buying the plan.

ICICI Prudential Life Child Plans

ICICI Prudential Life Insurance Company offers only one kind of child insurance plan which has an exhaustive list of features and benefits. Let us take a look at this child education plan in detail.

ICICI Pru Smart Kid Assure Plan

A unit linked child plan which offers the following benefits to the customer:

• It is a unit linked plan which offers two options of investment portfolio strategies which are Life cycle based Portfolio Strategy and Fixed Portfolio Strategy.
• Under the Lifecycle based portfolio strategy, the premium will be initially distributed between two funds namely Multi Cap Growth Fund and Income Fund based on the age of the policyholder. Multi Cap Growth Fund is a high risk and high return fund with the maximum allocation of premium in the initial years while Income Fund is a low risk low return fund. With the passage of the policy term and increasing of the policyholder’s age, the investment will be redistributed gradually every year with money being transferred form the Multi Cap Growth Fund to the Income Fund to protect it from high volatility. In the later ages, as the policy nears maturity, the bulk of the investment will be in the Income Fund which offers a low risk profile. The distribution and balancing of the allocation is done by the company automatically.
• Under the Fixed Portfolio Strategy, the company offers a choice of 6 funds and the policyholder will have to choose the fund according to his risk appetite. The funds available under the options are Opportunities Fund, Multi Cap Growth Fund, Blue Chip Fund, Multi Cap Balanced Fund, Income Fund and Money Market Fund.
• There is a feature of Automatic Transfer Strategy under the Fixed Portfolio strategy under which the policyholder may choose to invest all or a part of his premium in the Money Market Fund and from there a chosen amount may be transferred automatically to the Blue Chip Fund or Multi Cap Growth Fund or Opportunities Fund as per the policyholder’s choice.
• On maturity of the plan, the available fund value is payable to the policyholder. The policyholder may choose the receive the fund value on maturity in lump sum or keep the proceeds invested with the company for further 5 years under the Settlement Option. During these 5 years, the policyholder can avail the fund value in installments.
• In case of death of the insured during the tenure of the plan, the basic Sum Assured chosen at the time of buying the plan is paid subject to a minimum of 105% of all premiums paid till the date of death. Moreover, future premiums are waived off under the inbuilt Payer Waiver Benefit and are paid for by the company and the plan runs unaffected. On maturity, the available fund value is again paid to the beneficiary who is the child.
• There is an option of adding the Income Benefit Rider wherein, in case of death of the insured, 10% of the rider Sum Assured will be paid to the beneficiary every year post death till the maturity of the plan in addition to the death benefit payable as above.
• Accidental Death and Disability Benefit Rider is also available under the plan which promises additional payment in case the insured suffers an accidental death or disability
• The plan offers Guaranteed Additions which vary in the range of 120% - 170% of the annual premium. The Guaranteed Additions will be added to the fund value at the end of 15 years.
• From the 6^th year of the policy there will be an additional allocation of premium @ 2%. Thus, from the 6^th policy year, 102% of the premiums paid will be allocated to the fund.
• The Sum Assured can be increased or decreased subject to certain terms and conditions.
• Additional premiums can be paid through top-ups with a minimum value of Rs.2000
• Switching between funds is allowed under the Fixed Portfolio Strategy with a minimum value of Rs.2000
• One free partial withdrawal is allowed every three policy years subject to a maximum of 20% of the available fund value as on the date of withdrawal.
• A change in portfolio strategy is allowed once every year

Eligibility Details