ICICI Prudential Smart Kid Premier Plan

What is ICICI Prudential Smart Kid Premier Plan?

The ICICI Prudential SmartKid Premier is a Unit-Linked Insurance Plan (ULIP). It is specifically designed to help parents secure their child's future by offering a financial safety net. A key feature of this plan is its flexibility to cover both the mother and father within the same policy through its Joint Life coverage option. In the unfortunate event of the first death of either parent, the plan provides a lump-sum payment of the Sum Assured to the nominee. Additionally, the company commits to paying all future premiums under the policy until the end of the premium-paying term, ensuring the child's education remains uninterrupted. It is important to note that the investment risk in the investment portfolio is borne by the policyholder.

Features of ICICI Prudential Smart Kid Premier Plan

The SmartKid Premier Plan offers a variety of features designed to provide flexibility and comprehensive coverage:

• Joint Life Coverage Option: This allows you to secure insurance coverage for both yourself and your spouse within the same policy. Alternatively, a Single Life option is available for coverage of just one parent.

• Payer Waiver Benefit: In the event of a parent's death, the nominee receives a lump-sum payment, and the company takes over payment of all future premiums until the end of the premium-paying term, securing the child's continued education.

• Choice of Funds and Portfolio Strategies: Policyholders can choose from 8 different funds and 3 portfolio strategies to align their investment approach with their individual risk tolerance.

• Flexible Premium Paying Term: Premiums can be paid either throughout the entire policy term or for a limited period.

• Loyalty Additions: The plan rewards long-term commitment with loyalty additions of 2% to your Fund Value. These additions are paid at the end of every fifth policy year, starting from the end of the 10th policy year, provided all due premiums have been paid. Loyalty additions are calculated as 2% of the average of Fund Values on the last day of the eight policy quarters preceding the allocation. Loyalty additions are made by allocating extra units.

• Partial Withdrawals: The facility for partial withdrawals allows access to money at key educational milestones for your child.

• Top-ups: Policyholders have the option to invest surplus money over and above their regular premiums as top-ups.

• Tax Benefits: The plan offers tax benefits subject to conditions under Section 80C of the Income Tax Act, 1961 and Section 10(10D) of the Income Tax Act, 1961. Tax laws are subject to amendments.

• Settlement Option: At maturity, the entire Fund Value is paid, or a settlement option can be chosen.

• Fund Switches: Four free switches between funds are permitted every policy year. Subsequent switches are charged at Rs. 100 per switch. Unutilized free switches cannot be carried forward.

• Policy Alterations: Any alterations made to the policy during its term will incur a miscellaneous charge of Rs. 250 per alteration.

• Charge Deduction: All charges, including switch and alteration charges, are deducted through the redemption of units.

Investment

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Eligibility Criteria for the ICICI Pru Smart Kid Premier Plan

Below is the eligibility criteria for ICICI Pru Child Plan: 

Benefits of ICICI Prudential Smart Kid Premier Plan

The ICICI Prudential Smart Kid Premier Plan is designed to provide various benefits for the child's future:

• Comprehensive Safety Net: By offering insurance coverage for both parents in the same child plan, it ensures a broad safety net for the child.

• Immediate Payout of Sum Assured: In the unfortunate event of the death of the insured parent (or the first death in a joint life policy), the nominee receives a lump-sum payment of the Sum Assured.

• Company Pays Future Premiums: Following the death of a parent, the company undertakes to pay all future premiums under the policy until the end of the premium paying term, ensuring the child's uninterrupted education.

• Financial Support at Milestones: The partial withdrawal facility allows access to funds at key educational milestones of the child.

• Maturity Benefit: At the end of the policy term, the entire Fund Value would be paid to the policyholder.

• Long-Term Rewards: Loyalty additions provide additional value to the fund over the long term, enhancing returns.

Conclusion 

This investment plan stands out as a flexible and comprehensive unit-linked insurance solution designed to safeguard a child's future. By offering the unique option of joint life coverage for both parents, along with benefits like the Payer Waiver and loyalty additions, it aims to ensure financial security and uninterrupted education for your child