Everything You Need to Know About ICICI Pru Smart Kid Plan

ICICI Prudential Smart Kid Regular Premium Plan is a Unit-Linked Insurance Plan (ULIP) which is specially designed to help parents secure their children's future by making them their nominee under it. Under this plan, if a parent dies in an unfortunate situation during the policy tenure then the sum assured mentioned in the policy is paid to the nominee to ensure that they can fulfil their financial requirements as they would if the life assured had been alive. Moreover, in the case of an untimely death of the life assured, the plan waives off all the future premiums so that the nominee can avail Maturity Benefit at the end of the policy term.

Features of ICICI Pru Smart Kid Regular Premium Plan

Following are some key features of the ICICI Pru Smart Kid Regular Premium Plan - 

1. Portfolio Strategies-  There are 2 investment strategies available under the fund - Fixed Portfolio Strategy and LifeCycle based Portfolio Strategy 2.

2. Fund Options- The plan offers as many as 13 fund options. You can choose from different equity-debt funds as per your risk profile and investment preference.

3. Rider Options- The plan provides you with the 1 Rider option of Accidental Death. This rider provides additional coverage in case of unfortunate death of the life assured due to an accident.

4. Guaranteed Additions- The plan provides 3 types of guaranteed additions namely Loyalty Additions, Additional Loyalty Additions and Wealth Boosters to appreciate your savings.

5. Fund Switching Facility- You can switch funds any number of times under the plan.

Benefits of ICICI Pru Smart Kid Regular Premium Plan

ICICI Pru Smart Kid Regular Premium Plan comes with the following set of benefits - 

• Death Benefit

In case of death of the policyholder in an unfortunate situation, the Death Benefit payable will consist of the following:

1. Lump Sum Benefit - This is the benefit that is paid out at the time of claim to take care of any financial liabilities and security of the family. The Lump Sum benefit is higher of the two amounts i.e. sum assured and minimum death benefit. 

• Sum Assured which includes Top-up premiums if any. 
• Minimum Death Benefit where the minimum death benefit is 105% out of the total premiums including Top-up premiums if any.

2. Smart Benefit - A deferred benefit is a component that assures you that your savings for your future desired goals remain undisturbed.

Unlimited Fund Switching

You contain the option under this policy to switch between the available funds depending on your financial priorities and investment opportunities. This feature will be allowed only when money is there in the DP Fund and can avail if all your funds are in the Fixed Portfolio Strategy during the time of switching and Rs. 2000 is the minimum switching amount. This feature will not be applicable if your monies are invested in the LifeCycle based Portfolio Strategy 2.

• Maturity Benefit

On the date of attaining maturity of the policy, you will get the Fund Value including the Top-up Fund Value, if any value is there. This doesn't include survival benefits of the life assured as it has already been paid before the date of maturity. You will be getting an option to gain the maturity benefit as a lump sum or as a structural payout using the settlement option. But you will be able to avail this option only when the life assured and policyholder are the same. Policyholders need to be alive till the end of maturity to avail of the settlement option. 

• Partial Withdrawal Benefit

These benefits are allowed after the completion of five policy years provided only when the monies are not in the DP Fund. There is no limit on the number of partial withdrawals and it's free of cost as long as the total amount of partial withdrawals in a year does not exceed by 20% of the Fund Value during a policy year. 

• Surrender Benefit

If you wish to surrender the policy during the First Five Policy Years The Fund Value including Top-up Fund Value, if any, after deduction of applied Discontinuance Charge, shall be transferred to the Discontinued Policy Fund (DP Fund).On surrender after completion of the fifth policy year, you will be applicable to the Fund Value including Top-up Fund Value, if any. 

• Loyalty Additions Additions

Under this plan, policyholders get a reward for paying regular premium payment from time to time, from the sixth policy year onwards. The company allocates additional units at the end of every policy year, where each unit is equal to 0.25% of the average of the Fund Values. The above additions will not be added if your monies are in the DP Fund.

Also Read: 

Things To Keep In Mind While Buying a Child Plan

How To Compare Child Life Insurance Plans Online?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.