ICICI Prudential Smart Kid Regular Premium Plan
ICICI Prudential Smart Kid Regular Premium Plan is Traditional Participating Endowment plan for the benefit of the child where the parent’s life is insured. If the parent dies within the policy tenure, the Sum Assured is paid to the nominee to address the immediate financial requirements and the future premiums are waived off and paid by the insurer such that the Maturity Benefit is paid as and when due. Now, there are 2 options provided for Maturity Benefit. Under Option 1, the Sum Assured is paid in instalments 7, 5 and 2 years before Maturity and the remaining amount on Maturity. And under Option 2, the Sum Assured is paid in instalments in the last 5 years of the policy.
Key Features of ICICI Prudential SmartKid Regular Premium Plan
- This plan guarantees the Maturity Benefit according to the option chosen, under all circumstances, provided all premiums are paid
- There are 2 Maturity Benefit Options that can be chosen:
- Option 1: The Maturity Benefit is received at pre defined critical educational milestones
- Option 2: Part of the Sum Assured is paid as Maturity Benefit every year in the last 5 years of the policy
- There are 2 additional riders that can be availed
- This policy has Guaranteed Additions of 3.5% on Sum Assured for the first 4 years and Vested Bonus available in this plan
Benefits you get from ICICI Prudential SmartKid Regular Premium Plan
Death Benefit – In case of death of the Life Insured, i.e. Parent, within the policy tenure, the Sum Assured is paid out immediately and the future premiums are paid by the insurer so that the policy continues and the Maturity Benefit is paid.
Survival Benefit – This benefit is paid under all circumstance
· Option 1: The Maturity Benefit is received at pre defined critical educational milestones
o 7 years before the Policy Matures- 20% of the Sum Assured is paid
o 5 years before the Policy Matures - 20% of the Sum Assured is paid
o 2 years before the Policy Matures - 20% of the Sum Assured is paid
· Option 2: The Maturity Benefit is paid every year in the last 5 years of the policy.
o 4 years before the Policy matures- 25% of the Sum Assured is paid
o 3 years before the Policy matures- 20% of the Sum Assured is paid
o 2 years before the Policy matures- 20% of the Sum Assured is paid
o 1 year before the Policy matures- 20% of the Sum Assured is paid
Maturity Benefit – On maturity, the remaining 30% of Sum Assured under Option 1 and 20% of Sum Assured under Option 2 is paid along with Guaranteed Additions and Vested Bonus.
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C
Eligibility conditions in ICICI Prudential Smart Kid Regular Premium Plan
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Minimum
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Maximum
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Sum Assured (in Rs.)
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1,00,000
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30,00,000
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Policy Term (in years)
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10
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24
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Premium Payment Term (in years)
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Equal to Policy Term
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Entry Age of Parent (in years)
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20
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60
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Age at Maturity of Parent (in years)
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50
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70
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Entry Age of Child (in years)
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0
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12
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Age at Maturity of Child (in years)
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22
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25
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Regular Pay premium (in Rs.)
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8400 p.a.
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No Limit
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Payment modes
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Yearly, Half-yearly or Monthly
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Sample illustration of returns in ICICI Prudential Smart Kid Regular Premium Plan
Entry Age of Child = 0 years
Maturity Age of Child = 22 years
Sum Assured = Rs 2,50,000
Premium = Rs 12,236 p.a.
Option 1 selected
Guaranteed Benefit
When Child is 15 years old, i.e. 7 years before Policy Maturity = 20% of SA, i.e. Rs 50,000 is paid
When Child is 17 years old, i.e. 5 years before Policy Maturity = 25% of SA, i.e. Rs 62500 is paid
When Child is 20 years old, i.e. 2 years before Policy Maturity = 25% of SA, i.e. Rs 62500 is paid
And on Maturity, when Child is 22 years old = 30% of SA, i.e. Rs 75,000 is paid
Guaranteed Additions, payable on maturity= Rs 36881
Non Guaranteed Benefit
Additional Features of ICICI Prudential Smart Kid Regular Premium Plan
Riders – There are 2 riders available in this policy
· Income Benefit rider- On the death of the parent (Life Assured) during the term of the product, 10% of the Sum Assured under the rider is paid to the nominee every year, for the remaining years, till the maturity of the policy.
· Accident and Disability Benefit Rider- On the death of the parent (Life Assured) due to an accident, the child gets an additional Sum Assured. In the event of total and permanent disability, 10% of the Sum Assured is paid to the child every year, for 10 years.
There is 1 inbuilt rider available in this policy: Premium Waiver Benefit rider
You stop paying the premium - If the policy holder stops paying the premium, the insurance cover will cease and the policy will lapse.
You want to surrender the policy – The policy can be surrendered only when the life assured is alive. The policy will acquire a surrender value and a paid up value 5 after premiums have been paid for at least three consecutive years.
Guaranteed Surrender Value = 35% percent of the premiums paid – 1st years’ premium
You want a loan against your policy – There is no loan available in this plan
Alternate traditional child plans from different insurance companies
ING Creating Life Child Protection Plan
LIC Jeevan Ankur Child Plan
Met Bhavishya from MetLife
Other child plans from ICICI Prudential Life Insurance
ICICI Prudential Smart Kid Premier Plan
