ICICI Pru SmartKid Premier Review
Plan Name: SmartKid Premier
Insurer: ICICI Pru Insurance Company Limited
Category: Unit Linked Insurance Plan
Objective: Financially Securing Child’s Future
ICICI Pru SmartKid Premier is a non participating unit linked insurance plan with many riders and flexible options well suited for customer’s needs.
Major USP of ICICI Pru SmartKid Premier
Joint life cover available
Limited Premium payment term
Loyalty Additions
Flexible Sum Assured
Waiver of Premium
Eligibility of ICICI Pru SmartKid Premier
Minimum Entry Age: 20 years of Life insured, 0 years for child
Maximum Entry Age: 60 years of Life insured, 15 years of child
Maturity Age: 70 Years for life insured
Policy Term: 10, 15, 20 or 25 years
Minimum Premium: Rs 18,000 per annum
Maximum Premium: Rs 100,000 per annum
What benefits does ICICI Pru SmartKid Premier offer?
Maturity Benefit:
The fund value along with the loyalty additions are paid to the policyholder.
Death Benefit:
In case the life insured passes away then the death benefit would be higher of Sum Assured or 105% of all premium paid will be provided to the beneficiary.
The future premiums will be waived off and borne by ICICI Pru.
Loyalty Additions:
Beginning from 10th policy year and every 5th year thereafter, loyalty addition equivalent to 2% of the average fund value in the last eight quarters shall be added to the fund value.
Flexible Sum Assured:
The Sum Assured can be increased or decreased as per your requirement.
What are investment options with ICICI Pru SmartKid Premier?
There are many investment options available with SmartKid Premier:
The funds are mixture of equity and debt. You can chose among any of the eight funds available which are listed below:
Dynamic P/E Fund
Opportunities Fund
Multi Cap Growth Fund
Bluechip Fund
Multi Cap Balanced Fund
Income Fund
Money Market Fund
Return Guarantee Fund
Trigger Portfolio Strategy: The investment is managed as per fixed mechanism. The funds are divided in 75:25 proportion in equity oriented and debt oriented fund respectively. Any gain received is automatically moved in safe fund.
Life Cycle Based Portfolio Strategy: This strategy is based on age. In early stage, major proportion of premium is kept in equity oriented fund. As age increases, the proportion is increased gradually in debt oriented fund to minimize the risks as policy moves towards maturity.
The investment risk is borne by the policyholder.
What are the riders available with ICICI Pru SmartKid Premier?
SmartKid Premier has waiver of premium on critical illness Rider available with it. On diagnosis of any of 20 critical illnesses, future premiums will be waived off and borne by ICICI Pru.
Are there any tax benefits?
Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.
Under Section 10(10D) death claim is completely tax free.
What are the charges in ICICI Pru SmartKid Premier?
Premium Allocation Charge:
The premium allocation charges for SmartKid Premier are 2% for the first year and none therafter.
Fund Management Charge (FMC):
These are the charges levied as a percentage of fund value to manage the funds. The premium paid is allocated into different portfolio of funds. The annual FMC charges are 0.75% for money market fund, 1.25% for return guarantee fund and 1.35% for rest of funds.
Policy Administration Charge: These are monthly deductions which start from first month and are for maintaining the policy- paperwork, work force etc. The charges are 0.47% of annual premium for the premium payment term and 0.10% therafter.
Mortality Charge:
These are charges deducted as a part of life cover provided and are recovered through cancellation of units. Mortality charge is dependent on the risk cover taken along with age, gender and health condition.
What’s Policybazaar opinion on ICICI Pru SmartKid Premier?
SmartKid Premier is a unit linked insurance plan which is pretty good in terms of its benefits. There is the option of joint life cover which means if anything happens to either of the parents, the death benefit would be paid. One also has option of limited pay, there is waiver of premium benefit and rider is also available. Loyalty additions help build amount and SmartKid has low allocation charges.
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