ICICI Pru Smart Kid Solution is a unit linked insurance plan where the parent is the life assured, while the child is the nominee. The policy gives multiple choices to invest for the future of one’s child and a Smart Benefit, which ensures that the wealth accumulation continues even if the parent is no more. Withdrawals can be made to meet expenses at key educational milestones of the child, any time after five policy years.
About ICICI Prudential Life Insurance: ICICI Prudential Life is promoted by Prudential Corporation Holdings and ICICI Bank. The insurer started its operations in fiscal year 2001, and has been among the leading players in the life insurance sector. The company reported Assets Under Management to the tune of Rs. 1,604.10 billion, as on 31st March 2019.
(Note - All the information contained in this page has been sourced from the official website of ICICI Prudential.)
The features of ICICI Pru Smart Kid Solution are as under:
Death benefit - On the demise of the life assured, the benefit payable will comprise of two parts:
Minimum Premium Regular Pay Option
| Age at Entry | Minimum Premium |
|---|---|
| 20 – 49 years | Rs. 45,000 p.a. |
| 50 – 52 years | Rs. 1,20,000 p.a. |
| 53 – 54 years | Rs. 5,00,000 p.a. |
One Pay Option
| Age at Entry | Sum Assured | Minimum Premiums |
|---|---|---|
| 20 - 54 years | 1.25 times of Single Premium | Rs. 48,000 |
| 20 - 28 years | 10 times of Single Premium | Rs. 48,000 |
| 29 - 35 years | 10 times of Single Premium | Rs. 1,25,000 |
To avail a unit linked insurance plan, an individual will be required to submit certain documents that will serve as proof of identity and residence. The documents that are usually acceptable include:
ID Proof - PAN card, Passport, Voter ID card, etc.
Address Proof - Passport, Driving License, Voter ID card, etc.
The charges applicable under ICICI Pru Smart Kid Solution are as follows:
ICICI Pru Smart Kid Solution is designed to help parents save for their child’s education. The policy provides individuals the opportunity to get potentially better returns and grow wealth by investing in equity and debt funds for the long term.
What are the premium payment modes under regular pay option?
The premium payment modes available are Annual, Half-yearly and Monthly.
How are mortality charges calculated?
Mortality charges will be calculated on the basis of the sum at risk. Sum at risk is the lump sum benefit and the present value of future premiums.
Can partial withdrawals be made under ICICI Pru Smart Kid Solution?
Yes, one can withdraw money at key educational milestones after completion of five policy years.
What are the tax benefits associated with ICICI Pru Smart Kid Solution?
Policyholders can claim tax benefits under Section 80C of the Income Tax Act, 1961, for the premiums paid toward the policy. Additionally, proceeds from ICICI Pru Smart Kid Solution are tax-free in the hands of the receiver under Section 10(10D) of the Act.
