ICICI Prudential Smart Kid New Unit Linked

Posted by Admin on 3

Smart Kid New Unit Linked is one of the most popular child ULIP plan of ICICI Prudential Life Insurance.

The ultimate objective of this policy is to generate a large corpus for the future need of one’s child by investing amount at appropriate place in the unit linked fund at the same time ensure the availability of money even in the absence of parent, apart from this it also provide feature to withdraw money periodically to make expenses at appropriate time.

Let us take a look at the features of this policy.

It comes in two flavors.

1) Single Premium

2) Regular Premium

Most of the features are same for both the plans.

Following are the key eligibility criteria.

Single Mode

Regular Mode

Min/Max entry age(parent)

20-60 years

20-60 years

Min/Max entry age(Child)

0-15 years

0-15 years

Max Maturity age(Parent)

75 years

75 years

Max Maturity age(Child)

18-25 years

19-25 years.

Min/Max term

10-25 years

10-25 years

Min. Premium

Rs. 25,000/-

Rs. 12,000/-

Min. Sum Assured


5 times the single premium

With the single premium amount as low as 25,000 Rupees it helps those who has fund available and wants one time investment. Regular premium policy works like SIP to generate large corpus on the longer run and here minimum annual premium is 12,000 Rupees per annum.

Death Benefit:

If parent (life assured) dies

Sum Assured is paid out to nominee immediately.

In case of regular premium future premium is waived and is paid by company till maturity.

Child is entitled to all the policy benefits.

This feature is the unique selling point of the policy as child in the event of death of his parent not only receives S.A immediately but also future premium is paid by company and whatever is planned for him by his parent is then taken care by company as he will gets all the maturity benefit.

Maturity benefit:

Fund value is paid on the maturity.

Settlement option:

If settlement option is chosen then for a period of 1,2,3,4 or 5 year you can opt to receive fund value at half-yearly, yearly, Q-ly or monthly basis.

However good thing here is that you can even withdraw remaining money any time after maturity even if you choose settlement option.

Partial Withdrawal:

In order to take care of periodic expense on your child’s education you can withdraw money periodically after 5 years.

Here condition is that maximum 25 % of f und value can be withdrawn and 5 withdrawals is allowed in a term.

Fund options and Switches:

You are provided with as many as 7 fund options to choose depending on your risk taking capacity. Total of 4 switches are allowed in a policy year and minimum amount is 2000 Rupees.


This plan provides various riders to choose depending on ones requirement.

If Income benefit rider is chosen child would receive annual allowance every year till maturity if parent dies.

Apart from this you can also opt for accident and disability benefit rider.

Waiver of premium rider if opted in regular premium plan, no premium required to be paid if life assured suffers disability due to an accident.

Cover Continuation:

In regular payment mode if one fails to pay premium after 3 years your life cover continues. Charges are deducted from your existing fund.

Premium paid in both the policy is eligible for tax deduction.


Allocation charge:

Regular premium:

Allocation charge here not only depends on which year you are paying premium but also on the premium amount.

For first year it ranges between 20% 18% of your premium amount.


1st year

2 – 5 years

6 – 10 year

From 11 years

12,000 – 19,000





20,000 – 49,999





50,000 -





I you are investing Rupees 25,000 then 20 percentage of it which is Rupees 5000 would be deducted as Allocation charge and rest 20,000 is invested to purchase fund in the first year and in subsequent year it gradually decreases.

For single premium it is much less and it ranges from 8% to 2%.

25,.000 – 49,000


50,000 – 99,999


1,00000 – 4,99,999


5,00,000 -


Switching charges: Rupees 100 per switch after 4 free switches.

Policy administration charge:

Single premium policy will attract less Policy administration charge of Rs. 20 per month compared to Rs. 60 per month in Regular premium policy.

Mortality and other rider charge:

Mortality and other rider charges would be deducted on monthly basis.

All the charge is based on per thousand S.A and it depend on your age, gender and policy term.

Eg. For Male of 20 years age mortality charge would be Rs. 1.33 per thousand S.A while for female it is 1.26.

Fund management charge:

This depends on the fund you have chosen and for high growth fund it is high.

It ranges between 1.50% PA of your fund’s NAV to 0.75 %.

For All the above charges equal number of units were deducted from your account except Allocation charge which is deducted while paying premium.

Surrender charges:

After 5 policy years full amount as of NAV is paid.

See the below table

Surrender value as % of NAV

3rd policy year


4th policy year


5th year onwards


However before 3 years surrender is not allowed.

If premium is discontinued before continuation of 3 full policy years all the benefit of the policy will cease and surrender value of such policy is as below.

Premium paid

Surrender value as % of NAV

Less then a year


One year


2 year



ICICIC Prudential Smart Kid Unit linked is feature rich policy which contains all features required for a child policy.

Allocation charges for regular premium policy is very reasonable as many ULIP plan comes with allocation charge of more then 20%.

However for Single premium policies allocation is charge of 8% is bit high.

Also with the feature of cover continuation one continue to receive benefits even if he is unable to pay premium.

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JAY said...

couldn't understand...single premius allocation charge is 8% which is about the 2000 for 25000 and for regular premius which is about 5000 rs(20%). But you wrote that single premium is bit high...

Bhargav said...

Hi Jay,

If we see the similar product Child Fortune plus of LIC (or many of the other Child ULIP plans)http://lifeinsureinfo.blogspot.com/2008/11/lics-child-fortune-plus-ulip-plan.html

Single Premium allocation charge ranges between 3-6% in most cases and above that it sound too high as SP policies will save on Administrative charges and also you are paying every thing at one go 8% is very high.

I have compared RP and SP charges with charge of other insurers and not between two of them.

rahul said...

Hi! Nice policy & features are too good.. Have been searching for tutorials on how to plan for insurance according to my budget and needs... This tool came in handy too! Enjoy :) http://www.simpleinsurance.co.in

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