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One of the top priorities of every individual is fulfilling the dreams of near & dear ones.
You need to ensure that any unfortunate event shouldn’t jeopardize their dreams.
So, you need a life cover to protect your family & at the same time, you need to save for their dreams.
ICICI Prudential has come up with a solution to fulfil these responsibilities. ICICI Pru Smart Life is designed for Smart parents, Smart spouses, and Smart Sons/daughters.
In this article, let us evaluate the features & benefits to analyze the advantages(pros) and disadvantages(cons) of the Child variant (Smart Parents – Smart Kid).
The base plan is called ICICI Pru Smart Life & the variant name is Smart Kid Solution – Children Education Plan.
So, are you eager to find out the whether the ICICI Pru Smart Kid Solution is a Good or Bad investment option to meet the educational expenses of your children?
Let’s get started!
Table of contents:
1.)An Overview of ICICI Pru Smart Kid Solution(Children Education Plan) – Analysis
2.)Features of ICICI Pru Smart Kid Solution (Children Education Plan) – Analysis
3.)Eligibility Criteria Of ICICI Pru Smart Kid Solution (Children Education Plan) – Analysis
4.)Portfolio Strategies & Fund Options Of ICICI Pru Smart Kid Solution (Children Education Plan) – Review
- Fixed Portfolio Strategy – Analysis With Illustration
- Automatic Transfer Strategy – Analysis
- Life cycle-based Portfolio Strategy – Analysis
5.)Benefits Of ICICI Pru Smart Kid Solution (Children Education Plan) in detail
- Death Benefit Review
- Maturity Benefit Review
- Loyalty Additions and Wealth Boosters – Review
6.)Additional benefits Of ICICI Pru Smart Kid Solution (Children Education Plan) – A Analysis
- Switch between funds – Analysis
- Top-up premium – Analysis
- Change in Portfolio Strategy – Analysis
- Premium Redirection – Analysis
- Partial Benefit – Analysis
- Decreased Sum Assured – Analysis
- Decrease in Policy Term – Analysis
- Grace period
- Premium Discontinuance (Applies for Limited & Regular pay) – Review
- Revival
8.)Free Look period of ICICI Pru Smart Kid Solution (Children Education Plan)
9.)Surrendering ICICI Pru Smart Kid Solution (Children Education Plan)
10.)Various Charges under ICICI Pru Smart Kids Solution (Children Education Plan)
- Premium Allocation Charge – Analysis With Illustration
- Fund Management Charge (FMC) – Analysis With Illustration
- Policy Administration Charge – Analysis
- Mortality Charges – Analysis With Illustration
- Discontinuance charge
- Inference from the charges – Analysis
11.)Advantages of ICICI Pru Smart Kid Solution(Children Education Plan) – Analysis
12.)Disadvantages of ICICI Pru Smart KLid Solution(Children Education Plan) – Analysis
13.)Research Methodology ICICI Pru Smart Kid Solution(Children Education Plan)
14.)Benefit Illustration – IRR(Internal Rate Of Return i.e Interest Rate) analysis of ICICI Pru Smart Kid Solution(Children Education Plan)
15.)ICICI Pru Smart Kid Solution(Children Education Plan) vs Other Investment Products
- ICICI Pru Smart Kid Solution (Children Education Plan) Vs Pure Term Insurance + PPF / ELSS – Analysis
- ICICI Pru Smart Kid Solution (Children Education Plan) Vs SBI Life Insurance Child Plan – Smart Scholar
- ICICI Pru Smart Kid Solution (Children Education Plan) Vs ABSLI Child’s Future Assured Plan Review
17.) Who Should Consider ICICI Pru Smart Kid Solution? – Analysis
1. An Overview of ICICI Pru Smart Kid Solution (Children Education Plan) – Analysis
ICICI Pru Smart Kid Solution is a unit-linked non-participating individual savings life insurance plan. This plan gives you a variety of saving options so you can build up money for your desired goals as well as a life insurance policy to protect your family even in the tragic event of your passing.
You can click here for the official brochure of Smart Kid Solution (Children Education Plan).
2. Features of ICICI Pru Smart Kid Solution (Children Education Plan) – Analysis
- Pay premium as per your choice – Single pay, Regular pay & Limited pay
- Choose the extent of safety that fits your needs.
- There are two portfolio strategies & 14 Fund options.
- Get rewarded with Loyalty Additions and Wealth Boosters for long-term policies.
- In the event of unfortunate death, apart from Lumpsum benefit, there is a premium waiver option.
- Partial withdrawals are allowed to fund any emergencies provided the lock-in period is completed.
3. Eligibility Criteria of ICICI Pru Smart Kid Solution (Children Education Plan) – Analysis
4. Portfolio Strategies & Fund Options of ICICI Pru Smart Kid Solution (Children Education Plan) – Review
- Fixed Portfolio Strategy – Analysis with Illustration
This method allows you to manage your financial savings actively.
Under this strategy, you can choose to save your monies in any of the following fund options in proportion to your choice.
You can transfer monies among those funds through the usage of the switch option.
Many parents choosing the ICICI Smart Kid Plan or the broader ICICI child education plan use the Fixed Portfolio Strategy to align investments with long-term education milestones.
The details of the funds are given in the illustration table below:
| Asset Allocation | |||||
| S.no | Name of the Fund | Equity & Equity Related Securities | Debt | Money Market & Cash | Risk -Reward profile |
| 1 | Opportunities fund | 80-100% | 0-20% | 0-20% | High |
| 2 | Multi-cap growth fund | 80-100% | 0-20% | 0-20% | High |
| 3 | Blue-chip fund | 80-100% | 0-20% | 0-20% | High |
| 4 | Maximiser V | 75-100% | 0-25% | 0-25% | High |
| 5 | Value Enhancer fund | 85-100% | 0-15% | 0-15% | High |
| 6 | Multi-cap Balanced fund | 0-60% | 20-70% | 0-50% | Moderate |
| 7 | Secure Opportunities fund | 0 | 60-100% | 0-40% | Low |
| 8 | Income Fund | 0 | 40-100% | 0-60% | Low |
| 9 | Money Market fund | 0 | 0-50% | 50-100% | Low |
| 10 | Maximise India fund | 80-100% | 0-20% | 0-20% | High |
| 11 | Active Asset Allocation Balanced Fund | 30-70% | 30-70% | 0-40% | Moderate |
| 12 | Focus 50 fund | 90-100% | 0-10% | 0-10% | High |
| 13 | India growth fund | 80-100% | 0-20% | 0-20% | High |
| 14 | Balanced Advantage fund | 65-90% | 10-35% | 0-35% | High |
| 15 | Sustainable equity fund | 85-100% | 0-15% | 0-15% | High |
| 16 | Mid-cap fund | 85-100% | 0-15% | 0-15% | High |
| 17 | Mid-cap hybrid fund | 65-80% | 20-35% | 0-15% | High |
| 18 | Constant Maturity Fund | 0 | 75-100% | 0-25% | Moderate |
Parents comparing the ICICI Prudential Smart Kid Plan with other ULIP-based child solutions often choose equity-heavy funds when targeting higher long-term growth.
- Automatic Transfer Strategy – Analysis
Within the Fixed Portfolio Strategy, you furthermore may have the choice to choose Automatic Transfer Strategy (ATS).
If this is chosen, you can save all or some part of your saving in a Secure Opportunities Fund, Money Market Fund, Income Fund, and/or Constant Maturity Fund and transfer a fixed amount in regular instalments into one or more of the following funds: Blue-chip Fund, Maximiser V, Multi Cap Growth Fund, Maximise India Fund, Value Enhancer Fund, Focus 50 Fund, India Growth Fund, Opportunities Fund, Balanced Advantage Fund, Sustainable Equity Fund, Mid Cap Fund or Mid Cap Hybrid Growth Fund.
The ATS feature is especially valued by policyholders using the ICICI Prudential Smart Kid Assure structure who want gradual exposure to high-growth equity funds.
- Life cycle-based Portfolio Strategy – Analysis
Depending on your age at the time of ICICI Pru Smart Kid Solution (Children Education Plan) policy inception, your investments are split between the Multi Cap Growth Fund and the Income Fund. Your money is re-distributed in accordance with your age as you transition from one age band to another.
The age-wise portfolio distribution is shown in the table.
| Age of the Policyholder | Multicap Growth fund | Income fund |
| 20-25 | 80% | 20% |
| 26-30 | 75% | 25% |
| 36-45 | 65% | 35% |
| 46-55 | 55% | 45% |
| 56-65 | 45% | 55% |
This strategy aligns well with the ICICI Smart Kid Plan philosophy of reducing risk as the child approaches higher education stages.
5. Benefits of ICICI Pru Smart Kid Solution (Children Education Plan) in detail
Death benefit Review
On the death of the Life Assured, the Death Benefit payable will comprise two parts:
i)Lump Sum Benefit – A benefit paid out at the time of claim to take care of any immediate liabilities of the family.
The Lump Sum benefit is higher of the two amounts:
- Sum Assured
- Minimum Death Benefit (105% of the total premiums including Top-up premiums)
ii)Smart Benefit – A deferred benefit that ensures that your savings for your desired goal continue uninterrupted.
This benefit does not apply to the One Pay option.
The Fund Value including Top-up Fund Value, if any, will remain saved in the respective funds and portfolio strategies as of the date of death of the Life Assured.
Under this benefit, following the date of death of the life assured, units equivalent to the installment premium will be allocated by the Company on the subsequent premium due dates.
Loyalty Additions and Wealth Boosters will continue to be allocated to the Fund Value.
This protection-led structure is one key reason why many parents prefer the ICICI Prudential child education plan over pure investment products.
Maturity Benefit Review
On maturity of the policy, you will receive the Fund Value including the Top-up Fund Value, if any.
This is paid irrespective of the survival of the life assured till the maturity date.
You will have the option to receive the Maturity Benefit as a lump sum or as a structured pay-out using the Settlement Option.
Only in cases where the Policyholder and Life Assured are the same and the Life Assured lives to the end of the policy term is this choice possible.
The maturity flexibility is often highlighted in ICICI Smart Kid Plan reviews because it helps parents align pay-outs with specific education stages like graduation or overseas fees.
Loyalty Additions and Wealth Boosters – Review
| Benefit | When | Percentage |
| Loyalty Addition | End of every policy year, starting from the end of the sixth policy year | 0.25% |
| Additional Loyalty additions | End of every policy year, starting from the end of the sixth policy year if the premium for that year has been paid | 0.25% |
| Wealth Boosters | End of every fifth policy year, starting from the end of the tenth policy year | One Pay: 1.50%Limited Pay/ Regular Pay: 3.25% |
These additions significantly improve long-term returns, especially for those tracking ICICI Smart Kid Assure plan growth through fund value calculators.
6. Additional benefits of ICICI Pru Smart Kid Solution (Children Education Plan) – An Analysis
- Switch Between Funds – Analysis
This feature is only available if you have all your funds in the Fixed Portfolio Strategy at the time of switching and the minimum value of a switch is Rs. 2000.
If you have money saved up using the Lifecycle-based Portfolio Strategy, this option is not available to you.
Many users of the ICICI Smart Kid Plan calculator explore switching scenarios to optimise long-term education corpus creation.
- Top-up Premium – Analysis
You can save any surplus money as a Top-up premium, over and above the base premium(s), into the policy.
Your Sum Assured will increase by Top-up Sum Assured when you avail of a Top-up.
Top-up premiums can be paid at any time except during the last five years of the policy term.
The minimum Top-up premium is Rs. 2,000.
Top-up options make this plan more adaptable than many traditional ICICI child saving plan alternatives.
- Change in Portfolio Strategy – Analysis
You can change your portfolio strategy once every policy year, provided the monies are not in DP Fund. This service is offered without charge.
- Premium Redirection – Analysis
This feature is applicable only if you have opted for the Fixed Portfolio Strategy. The split may be altered at no fee at the time that successive premiums are paid.
- Partial Benefit – Analysis
Partial withdrawals are allowed after the completion of five policy years provided monies are not in DP Fund.
Any number of partial withdrawals are allowed, as long as they don’t add up to more than 20% of the Fund Value for the policy year as a whole.
Partial withdrawals are cost-free.
Parents often use partial withdrawals in the ICICI Prudential Smart Kid Plan to fund short-term academic expenses without disturbing the long-term goal.
- Decreased Sum Assured – Analysis
You can choose to decrease your Sum Assured at any policy anniversary during the policy term provided all due premiums to date have been paid. A decrease in Sum Assured will not change the premium payable under the policy.
- Decrease in Policy Term – Analysis
A decrease in terms is allowed subject to the Policy terms allowed under the given policy. If Policy Term is amended, all future charges will reflect the updated Policy Term. Once decreased, the Policy Term cannot be increased.
7. A Grace Period, Premium Discontinuance & Revival of ICICI Pru Smart Kid Solution (Children Education Plan) – A Analysis
- Grace period
The Grace period for premium payment is 15 days for monthly premium payments and 30 days for other premium payment methods commencing from the premium due date in ICICI Pru Smart Kid Solution (Children Education Plan).
The grace period functions similarly across most ICICI child insurance plan variations, ensuring continued protection even if a premium is missed.
- Premium Discontinuance (Applies for Limited & Regular pay) – Review
Premium discontinuance during the first five policy years: After deducting any applicable discontinuation fees, the Fund Value, including Top-up Fund Value, if any, shall be credited to the DP Fund after the grace period, and the Risk Cover and Rider Cover, if any, shall cease. It will stay in the DP fund until the policy is renewed by paying the required premiums. Or else, the monies will remain in the DP fund and will be paid out at the end of the lock-in period.
Premium discontinuance after the first five policy years: upon expiry of the grace period, the policy will be converted into a reduced paid-up policy with a paid-up sum assured. The rider covers, if any, shall cease.
Reduced paid-up Sum Assured = Original Sum Assured X (Total number of premiums paid till the date of discontinuance/ Original number of premiums payable).
This discontinuance structure is consistent with other ULIP-based child plans like the ICICI Pru Smart Kid Assure plan, making it easier for parents to compare long-term commitments.
- Revival
A revival period of three years from the first unpaid premium applies.
8. Free Look period of ICICI Pru Smart Kid Solution (Children Education Plan)
If you are not satisfied with the terms and conditions of this policy, you shall return the policy 15 days from the date you received it, if your policy is not purchased through Distance marketing or 30 days from the date you received it, if your policy is an electronic policy or is purchased through Distance Marketing.
This flexibility is often appreciated by parents comparing different ICICI child plans, especially those exploring options like the ICICI Prudential Smart Kid Plan or Smart Kid Assure.
9. Surrendering ICICI Pru Smart Kid Solution (Children Education Plan)
During the first five policy years, to surrender the policy, the Fund Value including Top-up Fund Value, if any, will be transferred to the Discontinued Policy Fund (DP Fund), after the deduction of relevant Discontinuance Charges.
The proceeds of the discontinued policy shall be refunded only upon completion of the lock-in period.
You will be entitled to the Fund Value, including Top-up Fund Value, if any, upon surrender following the completion of the fifth policy year.
Many parents check the surrender rules while comparing ICICI Smart Kid Assure, Smart Kid Solution, and other ICICI child savings plans to understand long-term liquidity before committing.
10. Various Charges under ICICI Pru Smart Kid Solution (Children Education Plan)
- Premium Allocation Charge – Analysis With Illustration
One Pay – 3%
Limited / Regular pay
| Premium Payment Mode / Annual Premium | Year 1 | Year 2 | Year 3 | Years 4 to 5 | Year 6 onwards |
| Annual | 6% | 5% | 4% | 4% | 2% |
| Half-yearly / Monthly | 4% | 4% | 3.5% | 3% | 2% |
- Fund Management Charge (FMC) – Analysis with Illustration
| Name of the Fund | Fund Management Charge |
| Opportunities fund | 1.35% |
| Multi-cap growth fund | 1.35% |
| Blue-chip fund | 1.35% |
| Maximiser V | 1.35% |
| Value Enhancer fund | 1.35% |
| Multi-cap Balanced fund | 1.35% |
| Secure Opportunities fund | 1.35% |
| Income Fund | 1.35% |
| Money Market fund | 0.75% |
| Maximise India fund | 1.35% |
| Active Asset Allocation Balanced Fund | 1.35% |
| Focus 50 fund | 1.35% |
| India growth fund | 1.35% |
| Balanced Advantage fund | 1.35% |
| Sustainable equity fund | 1.35% |
| Mid-cap fund | 1.35% |
| Mid-cap hybrid fund | 1.35% |
| Constant Maturity Fund | 1.35% |
| Discontinued Policy Fund | 0.50% |
- Policy Administration Charge – Analysis
It will be levied every month by redemption of units, subject to a maximum of Rs. 500 per month (Rs. 6,000 p.a.)
One Pay: Rs. 60 p.m. (Rs.720 p.a.) for the first five policy years
Limited/Regular Pay: 0.21% p.m. (2.52% p.a.) of Annual Premium, for the entire policy term.
- Mortality Charges – Analysis with Illustration
Mortality charges will be deducted every month by redemption of units.
| Age | 30 | 40 | 50 | 60 |
| Male | 1.80 | 3.12 | 6.93 | 17.45 |
| Female | 1.73 | 2.78 | 6.11 | 13.35 |
- Discontinuance charge
It depends on the year of discontinuance & the premium amount.
- Inference from the charges – Analysis
ICICI Pru Smart Kid (Children Education Plan) levies various charges as discussed above. The net premium is allocated for investment.
This will affect the return on investment.
Other market-related products do not levy these types of charges like charges for discontinuance, policy administration, etc.
This makes ULIP unattractive.
These charges are also what separate ICICI Pru Smart Kid Solution from simpler ICICI child education plans or ICICI child investment plans that parents commonly compare before choosing.
11. Advantages of ICICI Pru Smart Kid Solution (Children Education Plan) – Analysis
- Choose premium paying term & premium paying mode at your convenience.
- There are 2 investments strategies & 18 fund option which is not available in any other ULIPs.
- Loyalty additions & wealth boosters increase your fund value.
- Top-up premium is allowed.
- Fund switching & Premium redirections can be done during the policy term.
- Partial withdrawals are allowed to meet emergencies provided completion of 5 policy years.
- The premium waiver option is an inbuilt benefit.
These advantages are the main reason many parents explore ICICI Prudential Smart Kid Plan benefits while evaluating long-term education-focused solutions.
12. Disadvantages of ICICI Pru Smart Kid Solution (Children Education Plan) – Analysis
- Though you have the option to reduce the Sum assured, the premium is not reduced proportionately.
- There is no liquidity in the initial years (Lock-in period – 5 years).
- The policy levies numerous charges which will reduce the return.
- The sum assured is not adequate to meet the family’s basic needs.
- The loan option is not available.
Buyers often realise these drawbacks when comparing this plan with other ICICI Prudential child education plan options or standalone child investment schemes.
13. Research Methodology ICICI Pru Smart Kid Solution (Children Education Plan)
ICICI Pru Smart Kid Solution is a market-linked product.
So, you won’t get a guaranteed final maturity amount.
In order to make a decision we may need to figure out the potential return of this product.
For this let us calculate the internal return of this plan. This will give you a big picture of the policy.
This analysis is crucial for parents checking ICICI Smart Kid Plan calculators and maturity projections to understand actual long-term outcomes.
14. Benefit Illustration – IRR (Internal Rate Of Return i.e Interest Rate) analysis of ICICI Pru Smart Kid Solution(Children Education Plan)
A 35-year-old male buys ICICI Pru Smart Kid Solution for a sum assured of Rs. 5 lakhs.
The annual premium is 50,000 & the premium paying term is 15 years. At the end of 15 years, he will receive the fund value as of the date of maturity.
| Male | 35 years |
| Sum Assured | 5 Lakhs |
| Policy term | 15 years |
| Premium paying term | 15 years |
| Annual premium | 50,000 |
The given illustration shows two different rates of assumed future investment returns. The benefit illustration’s returns are not guaranteed, nor are they the maximum or minimum amounts that could be recovered, as the value of your policy depends on several factors including future investment performance.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 36 | 2 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 37 | 3 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 38 | 4 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 39 | 5 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 40 | 6 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 41 | 7 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 42 | 8 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 43 | 9 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 44 | 10 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 45 | 11 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 46 | 12 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 47 | 13 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 48 | 14 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 49 | 15 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 50 | 16 | 8,53,629 | 11,93,782 | ||
| IRR | 1.60% | 5.62% | |||
In the above illustration, the IRR (Internal Rate Of Return i.e. Interest Rate) at 4% p.a. is calculated at 1.60% and the IRR(Internal Rate Of Return i.e. Interest Rate) at 8% p.a. is calculated at 5.62%.
Under the 4% scenario, if he pays the premium for 15 years the fund value at the end of 15 years is ₹8.53 Lakhs.
The Internal rate of return for this cash flow is 1.60%. This rate is lower than the savings bank account rate.
Under the 8% scenario, if he pays the premium for 15 years the fund value at the end of 15 years is ₹ 11.93 Lakhs. The Internal rate of return for this cash flow is 5.62%. This rate is lower than the bank’s Fixed deposit interest rate.
An investment return should ideally be more than the inflation rate. Though ICICI Pru Smart Kid Solution is a market-linked product, the investment return is low.
Low investment returns will affect your future goals. And also, the sum assured is too low under this plan.
These IRR figures often lead buyers to explore other ICICI child investment plans, PPF, ELSS, or even separate term insurance plus mutual fund combinations.
15. ICICI Pru Smart Kid Solution (Children Education Plan) vs Other Investment Products
Now, let us compare other investments with ICICI Pru Smart Kid Solution. Investing in ICICI Pru Smart Kid solution will not aid you in achieving the dreams of your kids. For comparison purposes, we assume that the same amount is invested in other instruments.
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ICICI Pru Smart Kid Solution (Children Education Plan) Vs Pure Term Insurance + PPF / ELSS – Analysis
Under ICICI Pru Smart Kid Solution (Children Education Plan), for ₹ 50,000 premium, you get a life cover of ₹ 5 lakhs & final fund value is paid at the time of maturity. So, we can split this ₹ 50,000 & utilise it for life cover as well as investment.
| Pure term Life Insurance | |
| Sum Assured | 5 Lakhs |
| Policy term | 15 years |
| Premium paying term | 15 years |
| Annual premium | 2,500 |
| Investment | 47,500 |
A Pure Term Policy for a sum assured of ₹ 5 lakhs would cost ₹2,500 per annum. We have assumed ₹ 5 lakhs sum assured, as in the earlier illustration. Ideally, you should get an adequate life cover. After paying a Pure Term Life Insurance premium, the balance amount of ₹ 47,500 could be invested for wealth accumulation.
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 36 | 2 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 37 | 3 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 38 | 4 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 39 | 5 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 40 | 6 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 41 | 7 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 42 | 8 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 43 | 9 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 44 | 10 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 45 | 11 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 46 | 12 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 47 | 13 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 48 | 14 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 49 | 15 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 50 | 16 | 12,88,266 | 18,66,203 | ||
| IRR | 6.51% | 10.74% | |||
In the above illustration, the IRR (Internal Rate Of Return i.e. Interest Rate) of Term Insurance + PPF is calculated at 6.51% and the IRR(Internal Rate Of Return i.e. Interest Rate) of Term Insurance + ELSS is calculated at 10.74%.
PPF – At the end of 15 years, the final maturity is ₹12.88 lakhs. The IRR for Pure term + PPF is 6.51%. This return is higher than the 8% Scenario under ICICI Pru Smart Kid Solution. PPF is a debt instrument whereas ICICI Pru Smart Kid Solution (Children Education Plan) is a market-linked product.
ELSS – At the end of 15 years, the ELSS fund value is 19.83 lakhs. But it is subject to capital gains tax. The tax calculation is given below. The Post-Tax value is ₹ 18.66 lakhs. The IRR (Post-Tax Return) is 10.74%.
“This return can comfortably beat inflation. So, you can achieve your goals without any doubt”.
ELSS tax calculation
| Maturity value after 15 years | 19,83,281 |
| Less | |
| Purchase price | 7,12,500 |
| Long-term capital gains | 12,70,781 |
| Exemption limit | 1,00,000 |
| Taxable LTCG | 11,70,781 |
| Tax paid on LTCG | 1,17,078 |
| Maturity value after tax | 18,66,203 |
In the above illustration, the final Maturity Value after tax is calculated at ₹18,66,203.
The above analysis clearly shows that investing in ICICI Pru Smart Kid Solution will leave in a deficit when the goal is due.
Moreover, there may be a mismatch between the maturity of the plan & your actual requirement.
Many parents also compare the Smart Kid plan ICICI offers with other child investment plans, especially when evaluating long-term education needs and overall cost efficiency.
- ICICI Pru Smart Kid Solution (Children Education Plan) Vs SBI Life Insurance Child Plan – Smart Scholar
Please read our review of the SBI Life Insurance Child Plan which is an Individual, Unit Linked, Non-Participating Life Insurance Product. A ULIP plan that promises life protection as well as savings.
- ICICI Pru Smart Kid Solution (Children Education Plan) Vs ABSLI Child’s Future Assured Plan Review
Please read our review of ABSLI Child’s Future Assured Plan which is a Non-linked, Non – participating, Individual, Life Insurance, Savings Plan. Which promises to offer you Assured Benefits to fund your child’s key milestones.
While comparing these options, many families explore ICICI child education plan alternatives, including the ICICI Prudential Smart Kid Assure plan and ICICI Prudential child plans designed for long-term savings.
16. ICICI Pru Smart Kid Solution (Children Education Plan) Vs Other Investment Products – Review Conclusion
After comparing and analyzing the advantages and disadvantages of ICICI Pru Smart Kid Solution (Children Education Plan) with other investment products.
We have concluded that Term Insurance + PPF or ELSS is a far better investment option for your child’s future.
It becomes evident that choosing between ICICI Smart Kid, ICICI child saving plan variants, and other ULIPs depends largely on how much flexibility and transparency parents want in their child investment strategy.
Who Should Consider ICICI Pru Smart Kid Solution? – Analysis
The ICICI Pru Smart Kid Solution (Children Education Plan) is structured as a ULIP, combining insurance coverage with market-linked investment opportunities.
While it is marketed as a convenient “one-stop” solution for funding a child’s education, there are several factors to keep in mind before even considering this plan.
Potentially Suitable Scenarios:
- Parents who prefer having both life cover and an investment option bundled together, despite high charges and lower post-tax returns.
- Individuals who are comfortable with market risk and can tolerate fluctuations in fund value over the long term.
- Policyholders looking for options like fund switching, top-up premiums, and partial withdrawals after five years, though these features come with limitations.
Limitations to Consider:
- The plan’s expected returns are often lower than other simple investment alternatives such as PPF, ELSS, or pure term insurance plus separate investments.
- The sum assured is modest and may not adequately cover future education expenses, especially considering inflation.
- Liquidity is restricted in the first five years due to the lock-in period, making it inflexible for emergencies.
- Numerous charges—policy administration, fund management, mortality, and discontinuance fees—significantly reduce the effective returns.
Bottom Line:
The ICICI Pru Smart Kid Solution may appear suitable for parents seeking a combined insurance-investment product, but due to its lower returns, high charges, and market-linked risk, it is generally not an optimal choice for securing a child’s educational future.
Parents seeking goal-oriented savings could achieve higher, more predictable outcomes with separate investments tailored to their risk profile and time horizon.
17. Final verdict on ICICI Pru Smart Kid Solution (Children Education Plan)– Good or Bad?
The ICICI Prudential Smart Kid Solution (Children Education Plan) is designed to help parents plan for their child’s education and secure their future.
Similar to any other ULIP, this plan combines insurance coverage with investment opportunities.
A portion of the premium paid is allocated towards providing life insurance coverage for the parent or guardian, while the remaining amount is invested to build a corpus for the child’s education.
The plan offers multiple investment fund options to choose from, catering to different risk appetites and investment objectives.
At the end of the policy term, the accumulated corpus is given as a maturity benefit.
But this amount will not be sufficient to fund the child’s education expenses.
ICICI Pru Smart Kid solution (Children Education Plan) is a long-term investment.
The education inflation is around 8-10%. But the returns are too low under this plan to meet the education cost.
“If you are interested in saving for your child’s education.
Don’t opt for Readymade Child Plans that are available in the market. It is better to build an investment portfolio based on your specific goal”.
Are you searching for the Best Future Plan for your children on social media sites like Quora, Facebook, Twitter etc.?
A professional financial planner can guide you through a comprehensive financial plan.
Parents often look at ICICI Smart Kid plan reviews, ICICI Prudential Smart Kid policy details, and ICICI Smart Kid plan calculators to understand whether these ULIPs can genuinely support long-term education goals.
Before finalising, it is worth evaluating ICICI Prudential Smart Kid Solution alongside ICICI Smart Kid Assure plan, ICICI child insurance plans, and other ICICI kids plans to determine what aligns best with your family’s financial priorities.
Those exploring ICICI Smart Kid policy status online or checking ICICI Smart Kid plan returns often realise the importance of comparing ICICI child plans with simpler combinations like term insurance plus mutual funds.
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