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ICICI Prudential Smart Kid Regular Premium Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

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

 

COMPARE THIS PLAN WITH OTHER CHILD PLANS

 

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. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C

 

 

Eligibility conditions in ICICI Prudential Smart Kid Regular Premium Plan

 

Minimum

Maximum

Sum Assured (in Rs.)

1,00,000

30,00,000

Policy Term (in years)

10

24

Premium Payment Term (in years)

Equal to Policy Term

Entry Age of Parent (in years)

20

60

Age at Maturity of Parent (in years)

50

70

Entry Age of Child (in years)

0

12

Age at Maturity of Child (in years)

22

25

Regular Pay premium (in Rs.)

8400 p.a.

No Limit

Payment modes

Yearly, Half-yearly or Monthly

 

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

ICICI Prudential Smart Kid Regular Premium Sample Returns

 

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

 

What happens if?

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




 

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