ICICI Prudential Child Plan Review – SmartKid or Smart Ad

Good education for one’s child is something that will always be a cherished dream for every parent. And good education means good colleges, which means need for funding. The education costs are going up tremendously every year, hence it is necessary to save and invest regularly to build up a decent amount by the time the child is ready to go to college. Though we don’t now which field our child might like to get into, it is a good idea to keep a funding corpus ready for use.

Since this is such an emotional issue for most parents, there are several products which are being served on the emotional platter.  And people do buy such products due to the perfect sales techniques and sepia toned advertising blitzkrieg! What is needed is a practical look at whether the product will be able to do everything that you want from it.

ICICI Prudential Child Plan Review

ICICI Prudential SmartKid Regular Premium Plan – Review

It is this need that the product ICICI Prudential Smart Kid (RP) is trying to meet. The need is established, but does the product answer the requirements. Let us have a look.

Features of Smart Kid Regular Premium:

1. It is a traditional insurance product. This means the returns will have no link to the vagaries of the stock market. It has a pre-defined payment and benefits schedule.

2. The premium is to be paid on a regular basis till maturity of the product.

3. The policy provides for a premium waiver benefit. This means that in case of death of the parent, the future premiums of the policy will be waived (or as mentioned in the illustration- the company pays the balance premiums on your behalf). So essentially, the benefit will be paid to the child as per schedule even if the parent is no more.

Riders

1. Income benefit Rider: 10% of the sum assured will be paid for 10 years in case of the unfortunate demise of the parent. This is apart from the regular benefits.

2. Accident and Disability Rider: In case of accidental death, an additional amount is paid. If total, permanent disability occurs due to an accident, an amount equal to 10% of the sum assured under this rider is paid to the child for 10 years.

Let us look at the illustration given on the website.

ICICI Prudential Smart Kid Regular Illustration

The illustration is for a 30 year old parent who has a new-born child. The tenure of the policy is 22 years. The sum assured is Rs 2,50,000 and the premium is Rs 12,336 to be paid for 22 years. For simplicity, we are not considering any riders or the service tax component in the policy. Fixed amounts, depending on the sum assured are paid at the end of 15, 17, 20 and 22 years. A guaranteed amount equal to 3.5% of the sum assured of the first four years is paid on maturity. In the above illustration, this is Rs 36,881. Rest of the maturity amount is non-guaranteed and will depend on the performance of the company’s investments. (Download detailed illustration)

It is important to note that the premiums continue even when the payout starts. Thus the effective amount in hand will be less.

Few points to note before deciding on this policy:

1. Does it give me money when I want?

Big amounts are usually required at +2 stage for extra coaching etc (age16/17), then at graduation for fee (age17/18) and post graduation (age21/22). This policy pays in those years. There is also an option to get payouts in the last five years.

2. Will the amount suffice?

The payouts will happen as pre-defined, but the premiums still continue. So the net amount will be less. The fixed amounts will depend on the sum assured. Thus, to have a decent amount in hand, a higher sum assured will be required. Maximum sum assured allowed in this policy is Rs 30 lakhs. So the maximum payout at the end of 15 years will be Rs 6 lakhs. The premium in above case will be Rs 145029. This amount might be prohibitive for most young parents.

3. Time Value of Money

Inflation eats away into the purchasing power of money. In the above example a payout of Rs 6 lakhs sounds very attractive today. But considering inflation @8% – the value of that Rs 6 lakhs in 15 years will be only Rs 1,89,145. If you consider the premium that is still to be paid, you have net Rs 454871 in hand, which will be equal to Rs 143394 today.

4. Will it support my child if I die?

Yes, to the extent of the sum assured. The amount of sum assured will be paid immediately on death of the parent. There is a premium waiver benefit. Hence future premiums will be waived. The benefits will be paid to the child as and when due.

5. What is the rate of return?

This policy has a rate of return of 3.35%-6.3%. Compare this to the current inflation in education which can be on an average 10% per annum. It is thus, not an inflation protected product.

6. Are there other options to fund my child’s education?

Yes, there are.  Combination of mutual funds, direct equity, PPF, personal accident cover and term insurance can provide a good corpus and protection for your child’s education. Term insurance provides a big sum assured at a nominal cost. This can protect the child and the entire family in the unfortunate event of death of the earning parent. A personal accident and disability policy can provide additional amounts to support the amount in term insurance. It also provides the income benefit and the disability benefit. Equity and equity oriented mutual funds are known to deliver superior returns over longer terms. They are products that beat inflation. PPF is a guaranteed, tax-free and almost negligible risk product which can help build the corpus in a stable manner. Building a portfolio consisting of these components gives you a better chance at fulfilling the requirement of your child’s education funding.

Before buying any product that promises to support any of your important goal in life like education funding for your child, it is important to have a rational view on the offerings. It is very easy to get swayed by the emotional pitch of the advertising, but do your calculations and see whether it will stand true to its promise. Only then pick up your pen to sign on the dotted line.

Review of ICICI Prudential SmartKid Regular Premium Plan is done by Kiran Telang, CERTIFIED FINANCIAL PLANNERCM – the views expressed herein are the author’s personal views.

If you have any questions related to Child Plans or any other life insurance policy – feel free to add it in comment section.
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{ 84 comments… add one }
  • Nishi July 10, 2012, 10:37 AM

    Great Job !!
    Being a parent its really hard to become practical while planning for kids and I agree with you on this statement ‘What is needed is a practical look at whether the product will be able to do everything that you want from it’.
    About a couple of months ago I was so sure about positivity of this product.
    My thought process changed when I came across TFL. Now Term insurance seems far better than this SMART KID plan. As far as investment is concerned we have good options like PPF, MFs and investment in gold.
    This article will help me convince one of my friend who wants to buy this plan just because of Premium Waiver Benefit.
    Thanks.

    • Kiran Telang July 10, 2012, 12:33 PM

      Thanks Nishi!
      It is indeed a challenge to look at things rationally when it comes to children’s needs. I am glad you found this review helpful.

  • Manoj July 10, 2012, 11:05 AM

    Hi Hemant,

    Trying to convince customers emotionally has become a fashion since quite some time in such kind of ads. And the most disappointing aspect is that still many people are falling in this trap. The sooner as many people realize this aspect the better will be for them and the entire country and such products will eventually go into the dustbin.

    • Kiran Telang July 11, 2012, 7:08 AM

      Dear Manoj,

      They are doing their job by selling, it is our job as parents/customers of the product to be aware of what we are buying. Financial literacy is a very important aspect for everyone.

  • R SIVA PRASAD July 11, 2012, 10:26 AM

    Sir,

    I have Paid one premium 20000 for this child policy. Due date is 15th July. After reading your article I decided to not pay the premium. But how to get back my paid amount 20000/-. Is there any chance or I have to forego this amount? Please suggest. Already Iam investing in Mutual Funds and PPF and has Term Insurance.

    Thank You
    R Siva Prasad

    • Kiran Telang July 12, 2012, 10:09 AM

      Dear R Siva Prasad,

      You might have to forgo the premium that you have already paid. In most insurance policies you need to pay at least for three years for the policy to give any surrender value. In any case the surrender values in all traditional polices are very low, hence you will not be recovering your premiums paid.

      • R SIVA PRASAD July 12, 2012, 10:23 AM

        Hi Kiran,

        Thank You. But I have a doubt. Why not government ban this Insurance policies (endowment, moneyback, child plans) and encourage term policies in the interest of public?

        Thank You
        R Siva Prasad

        • Kiran Telang July 16, 2012, 9:44 AM

          Dear Siva Prasad,

          Its indeed a very pertinent question. Banning the plans is probably not a solution, but yes government is doing its bit in trying to promote insurance for risk cover. They have taken several positive steps like increasing the multiple of sum assured that every policy has to have to ten times o the premium. Besides, if you see there are several things that are not good for the people like tobacco, liquor etc, but government cannot ban everything. It is for the end user to understand what is good or bad for him and accordingly act.

  • pankaj kapadia July 11, 2012, 10:41 AM

    “bada bhai” and”dada”will buy this plan as emotional appeal is quite high. “mere bad bhi” will appeal the most fathers. If only these articles reach to those millions will they be able to make informed decission. They need to be informed that they are better off with ppf and term plan. But will insurance company or Govt ever advertise that child education can be funded thru PPF and term insurance is what u need for all u need to do “mere bad bhi”.

    • Kiran Telang July 16, 2012, 9:46 AM

      Very true Mr. Pankaj. Emotional selling is what happens for most of these products!

  • Dasarathi July 11, 2012, 11:50 AM

    wanted your view on HDFC sl classic plan.
    I at 30 ,wanted to invest around 25-35 yr for saving cum pension benifit.

    • Kiran Telang July 11, 2012, 1:49 PM

      Hi Dasarathi,

      It is better not to mix insurance and investment. You have many options to plan for your pension like mutual funds both equity and debt, PPF, NPS etc.
      SIPs into mutual funds will give you a discipline and ensure that you save and invest on a regular basis. Look at insurance only from the perspective of risk coverage.

  • Mohan Sharma July 11, 2012, 12:51 PM

    In the market there are so many traditional child plans. Which company’s are having the best plans? Have studied LIC, ICICI, HDFC and AVIVA. I could found that AVIVA YOUNG SCHOLAR SECURE looks to be better. What is your opinion before I finalise any plan for my grand child.

  • Siddharth July 11, 2012, 2:35 PM

    Hi Kiran,

    Very insightful article on the plan……I have been suggested a similar plan, Aviva Young Scholar Secure, which is looking much better on the parameters which you have rated the above plan on. Can you please provide me your views on this plan and which is the best kid’s plan available in the market as per you.

    • Kiran Telang July 12, 2012, 10:21 AM

      Dear Siddharth & Mohan,

      The whole idea is that you should keep investment and insurance seperate. In case of Aviva Young Scholar Plan, it is again a traditional insurance policy.
      If you look at an illustration of a 30year old parent taking this policy for his new born child, under the ‘Silver” option, the IRR works out to 5.56% Some other figures for you to note. Premium in this case will be Rs.25386 inclusive of service tax payable for 13 years. The risk cover provided will start with about Rs.9.83 lakhs and it keeps reducing over the tenure of the policy. You get five instalments of Rs.15000 from the child’s age 13-17, Rs.40000 when the child is 18 and Rs.568000 when the child completes 21. If you consider inflation of 8%, the value of Rs.15000 in 13 years will be Rs.5515 and obviously it keeps reducing as time passes. Rs.40000 wll be worth Rs.10000 in 18 years. Will these amounts suffice?
      Look at the other side. What if you put this money in PPF? We will consider a risk cover of Rs 10 lakhs for 21 years, which from Aviva costs Rs.3584. If you reduce this from the premium you will pay for the child plan the net amount is Rs.22252. Just like the child plan, put this amount in PPF for the same time that is 13 years. Then the maturity will be Rs.478313. Continue holding this investment till the child is 21, without putting more money. The amount will grow to Rs.8,8500. Please note that we are ignoring the technicalities of the PPF account for ease of explanation, also PPF rate is now variable, we are assuming an average of 8%. So you get a risk cover of Rs.10lakhs constant for 21 years and get Rs.8,85,000 at the end of it.
      Take your pick!

      • Mohan Sharma July 12, 2012, 11:53 AM

        I have studied Aviva Young Scholar Secure Plan in depth. In the above case for a male parent of 30 years with child of 0 ageand paying minimum premium of Rs. 25,000/- (Silver Option) it will work out as under and not the way you have said (I may be wrong, since have not worked on % etc, since it is a pure Child Plan) :

        Sum Assured will be Rs. 683,500/- from day one till the maturity of the plan. SA do not reduce at all in the whole Policy Term as mentioned in your reply. That figures are Guaranteed Death Benefits from Aviva.

        You do not pay premiums for the whole policy term. Maximum Premium Paying Term (PPT) is 13 years according to the age of the child. If child is of 2 years than PPT is 11 years only.

        In the year, i.e., 13th Policy year when you pay the last premium then Aviva start paying you Rs. 15,000/- for 5 years as Tution Fee for additional coaching of the child. As child is of 18 years then Aviva pays Rs. 40,000/- for College Fee Support. At the age of 21 of the child Aviva will pay Rs. 568,500/-for Higher Education Support. Total of these payouts by Aviva works out to Rs. 683,500/- (15,000 x 5 = 75,000/- + 40,000/- + 568,500/-). This Policy starts supporting the parent from 14th year of the child till he / she is of 21 years. These are the crucial years when parents require support for the education of their child.

        This policy has build in Income wavier rider. It means that in case of unfortunate death of the insured parent all left over premiums will be paid by Aviva in to the policy account. Other parent do not have to pay any premium. As death happens to the insured parent, Aviva will pay Rs. 683,500/- to the appointee and will pay all the payouts at regular interval as mentioned above, i.e., Rs. 683,500/- (15,000 x 5 = 75,000/- + 40,000/- + 568,500/-). IN OTHER WORDS THE POLICY HAS DOUBLE SUM ASSURED.

        The amounts available with you from the 13th year onwards is Rs. 15,000/- + 25,000/- = 40,000/- since you will not be paying premium of Rs. 25,000/- after 13th Policy year.

        As regards to PPF one has to depost regularly till the account is held but in case of Aviva Young Scholar Secure Plan you have to just pay for 13 years or less as the case may be. Inflation also effects our PPF amounts but do not give you any guarantee of amount. Only it gives us compounding interest benefit.

        For Insurance the client of 30 years can go for a Term Plan of Aviva for a Sum Assured of Rs. 50 lakhs in just Rs. 8,090/- (7,200 + Service Tax of Rs. 890) or Rs. 1 crore in just Rs. 15,856/- (14,112 + Service Tax of Rs. 1,744) or more and can cover upto the age of 70 years without any rider.

        Since I wanted to know the other Insurance Companies Child Plans before I invest Rs. 50,000/- (in Gold optio) for my grant child. I am looking a plan which can support the education of a child if his / her parents are not around. Education only suffers when earning parents are not there. Hope you can guide me on this issue.

        • Kiran Telang July 12, 2012, 12:43 PM

          Dear Mohan,

          If you read my earlier answer carefully, it shows exactly the same calculations that you have mentioned.
          Regards the sum assured, you are correct. The figures I have mentioned is of the guaranteed death benefit. This is because I am looking at practically what will the child get in case the parent is no more. If you download an illustration from the website, you will see a reducing guaranteed death benefit. That is also the reason, that for comparison I have taken a simple term cover of Rs.10 lakhs, to be closer to what this policy is offering. You can always go for a higher sum assured term plan depending on your requirements.
          Now, regarding PPF. I have given the figures of investment for comparison purpose. Yes, you have to pay every year, but the minimum required to continue a PPF account is only Rs.500. In case the parent dies, the term plan pays and that can still be used to fulfill the gap that will be there in the need.
          You will need to check with your advisor as regards your exact requirements and decide accordingly.

          • Mohan Sharma July 13, 2012, 7:18 PM

            Thanks Kiran.

            Have taken Aviva Young Scholar Secure (AYSS) for my grand son. Alongwith AYSS my son has also taken Aviva Life Shield Platinum Term insurance for Rs. 1 crore.

            PPF is also another option to creat wealth since now limit has been enhanced to Rs. 1 lac per year.

            Once again thanks for your guidance. I am available on 9810200000.

  • RAJESH July 11, 2012, 6:59 PM

    Hi Kiran,
    Which according to you is the best term policy that gives comprehensive coverage to the insurer?

    • Kiran Telang July 12, 2012, 10:30 AM

      Dear Rajesh,

      ‘Best’ is a very relative term. What is best for you might not be suitable for someone else. In case of term policies there are few factors that you need to keep in mind. First and the obvious one is the premium, but please note that this is not the most important factor. You also have to look at the claim payment record of the company. This data is available in th Annual Report of IRDA which can easily be downloaded from the IRDA website. The family should not be denied a rightful claim. That is the reason claim ratios are important. You also need to see the servicing record of the company. You don’t want your family running from pillar to post for the claim. You can also check the terms and conditions of the policy. This is usually available on the website of the company and the brochures of the product. There might be exclusions which you would want to be aware of. After you buy the policy read carefully through the policy document to understand the details. In case there is something that you are not happy with, you have a 15day window in which you can return the policy and claim your premium back.

  • Annapurna Shastri July 12, 2012, 9:10 AM

    True.A combination of term insurance plus investments surely scores over such products offering insurance + savings. Child plans have become merely an eyewash,since EVEN if you compare them with regular ULIPs, they do not offer anything extra.A normal ULIP also offers waiver of premium, partial withdrawal, a basic life cover etc..but at lower charges. ICICI Prudential itself has other ULIPs offering the same benefits with lower charges but without the “education insurance” tag.

    • Kiran Telang July 16, 2012, 9:50 AM

      I agree with you Annapurna. One the ladder of returns, probably the traditional child plans are at the bottom rung. ULIPs which invest in equity have a better chance of giving higher returns as compared to traditional products. But cost wise combination of simpler non-bundled products will work out much better.

  • alpesh July 12, 2012, 9:32 AM

    Respected Sir

    thanks for information, certainly its help me to decide to purchase this plan.

    • Kiran Telang July 16, 2012, 9:50 AM

      Dear Alpesh,

      I am glad this review made a difference for you.

  • Dr Nitin Agarwal July 12, 2012, 12:41 PM

    dear kiran,
    thanx a tonne for the information. i am also a 30 year old male with a one year daughter.i just bought a similar plan and paid the premium of 50000, but surrendered it in free look period in just right time after reading this article.

    Dr Nitin

    • Kiran Telang July 16, 2012, 9:52 AM

      Dear Dr.Nitin,

      I am glad you could make use of this review. I hope the underlying idea of understanding the product before investing will guide you in the future too.

  • anna July 12, 2012, 12:45 PM

    Should i continue my child ULIP with an annual premium of 50,000/- since 2005 till 2030?? The recent IRR i checked is 6%. i do have a term plan ( am 35yrs old) & invest in Mutual funds.

    • Kiran Telang July 16, 2012, 10:01 AM

      Dear Anna,

      It is difficult to advice based on one piece of information. I will broadly outline a few things that you need to keep in mind before making such a decision. The ULIP that ou have bought probably has a heavy front-loading structure. That means the bulk of the charges have been dedcuted in the first three years of the policy. After seven years where you stand today, the charges will be very low. You can check the details of the charges in your policy document. They will be mentioned very clearly. Second, what is the investment option that you have taken. Remember, equity pays best in the long run. So depending on when you would want your funds, you should make your investment allocations. Third, is it making a big difference in your cashflow…if you discontinue this policy, will the amount saved make a big difference to your cashflow in terms of utilizing it to fund some goals whihc have been ignored or deferred? You will be able to reach a conclusion if you analyse the policy on these parameters. Hope this helps.

      • anna July 16, 2012, 2:58 PM

        Thanks !!!
        Btw, I have invested in the growth option of the fund. Its the HDFC Youngstar plan-Growth option…
        As u said it very clearly mentions the charges in the statement. It currently to the tune of 1500 per month. I have 3 more endowment policies in my name ( LIC Jeevan Shree, Lic Jeevan Asha II, & Lic Jeevan Saral).
        All these policies premiums r collectively putting a strain on my cash flows. If otherwise the ULIP willl prove to be good in the long run, i dont mind continuing it. Then probably i will have to surrender one of my Endowment policies. Kindly Suggest…

  • sunil kohli July 12, 2012, 3:18 PM

    Dear Friends,
    Few observations.
    1. If a person is so sure that he shall not die till his child is settled, then why buy life insurance. But the million dollar question is”Can any one be so sure?????”
    2.Lets take a case. A person buys term insurance and open a PPF account for 15 years. He dies after 4 years. What shall his family get??. Sum assured from term plan+ return of 4 installments from PPF(after penalty deduction due foreclosure). What AYSS shall offer? Sum assured+waiver of premium+all the payments from age 13-21 . So which plan is better???
    3.Talking about inflation. With rise in inflation the pay/earnings also go up. When i joined Air Force as a fighter pilot in 1978, my starting pay was Rs 3800 PM. To-day, the starting pay is Rs 60,000PM.Therefore, with passage of time buy fresh policies to counter for Inflation.In my younger days, one lac was a big amount. To-day, people carry it in their pocket.So one has to keep purchasing new policies to cater for indexation.
    4. In October 2011, deputy governor of RBI announced that PPF rates would be floating and can change as per Govt. earnings. Hence, to assume a constant rate of interest in ppf is not correct. On the other hand AYSS, offers a constant rate of around 6%(tax free). In case of child’s education, one should always invest in fixed and guaranteed return.
    5. For any economy to grow, the lending rate of interest should be below 3%. In China its 0 %, in USA its 3%. In India, lending interest rates were around 18-20. Now they are around 12-14%.For India to develop interest rates have to go down. Its just a matter of time.We can not predict the fall. Hence, invest in AYSS,which assures constant rate till age 21 of the child.

    ” The only guaranteed thing in life is Death. Lets not close our eyes to it”
    ” You roll the car with first gear, then change to second, third, fourth and fifth.So make a beginning with first gear by buying AYSS. Other gears shall follow ”

    With Regards
    Wg Cdr SK Kohli(Retd.)
    MDRT (USA)
    Executive Financial Planning Adviser
    Aviva India Life Insurance
    Mobile. 9810500000

    • Kiran Telang July 16, 2012, 10:18 AM

      Dear Wg Cdr Kohli,

      You are being true to the company that you work for. That is a very good thing.
      To buy a product or not is an individual decision. By putting these posts we are trying to help people make informed choices about their decisions. For some people the child plans might be attractive even after reading this review. So be it. Its their decision. At least they understand what they are getting into.
      Now to the points that you have mentioned. Agree totally with the part that insurance is necessary as life is unpredictable. You mention that one plan is not sufficent. I agree that if insufficient insurance is taken at initial stages, you might have to look at multiple plans later. But being an insurance advisor, I am sure you would agree that a need based approach to calculate the insurance requirement of the client can take care of the factors of inflation and increase of income at later stages. For the benefit of our readers, I would like to outline the method that we financial planners use to calculate the insurance need of an individual. The factors taken into considreation are the cureent income, expected rate of increase of incoem, all future goals like education children, their marriage, retirement income for survivng spouse till the end of his/her life. After plugging in these details, we get the net present value of these figure. Form this we deduct the existing insurance and the asstes available to the faily that can be used to fund goals. The balance arrived at is the insurance requirement of the individual.What that means in lay terms is that if you were to die today, what amount of money should your family get to fulfill their needs as mentioned above. This gives a decent estimation of the needs. f course review will have to be done regularly to check whether in changed circumstances the estimations done earlier stand true. Modifications can be done if required. So if you see that this scientific method of arriving at the insurance requirement of an individual can take care of all the goals in absence of the life assured. If the family gets the lumpsum on death of the income earner, it can be invested in such a way that all goals even 20-30 years in future will be taken care of. Then it will not matter if your future PPF instalments have not been paid or your SIP instalments have to be discontinued.

  • Chandra July 12, 2012, 3:49 PM

    Hi Hemant,

    I would like to know if you have reviewed the ULIP ICICI Pru Pinnacle (both 1 and 2) which talks about guaranteed NAV.

    Regards,

    Chandra

    • Kiran Telang July 16, 2012, 10:20 AM

      Dear Chandra,

      Pinnacle product is no ore available in the market. They are highest NAV guaranteed products which have been withdrawn by IRDA.

  • eswar July 13, 2012, 11:56 AM

    Hi Hemanth,
    Can you suggest the investments in Chits (Srirama or Margadarshi) and do the Chit meturity amount into FD . any review about returns in chit investments?

  • Chinmay Jhaveri July 13, 2012, 2:15 PM

    Dear Kiran,
    You have done entensive review but i am still not convinced with you on following Points

    1. You have Ignord income Benefit Rider:
    The policy provides Income Benefit Rider and the purpose is to pay Regular monthly Payout to child as his pocket money so that child does not feel any pressure from family to start earning early or can spend as he or she is spending when his father was alive.This is paid till the maturity of the Plan or in other terms till he completes his education.

    2.You can only assume that the mutual fund return will be higher . No Gurantee is attach to it.What if at the time of admission of child the stock market is badly down.

    3. Return might be less in this plan ,but are returns are the only criteria while taking a plan for your child.This Plan offers Best Protection for the child future while assuring the parent of timely money at major education junctures.

    Term Plan is not the only solution for all insurance Needs and neither it can assure you the Child Future.
    I have seen the following scenerios:-
    After the death of Father who is a business man , the Money from term Plan is claimed by the Money Lenders and the wife does not want to spend left amont on child education and he is told to start earning early without completion of his education.

    2 I have seen this In Joint Family, the In laws have a eye on the BIG amont come from the term plan and if wife is depended on the family they might take the amount from her emotionally blackmail. since no plan is there after the death of father there is no security of completeing Child s Education.

    will continue the benefits later too
    Thanks
    Chinmay Jhaveri

    • Kiran Telang July 16, 2012, 10:38 AM

      Dear Chinmay,

      I am aware of the concerns that you have placed here. Many parents have the same concerns when they plan for their education.
      Regarding the income benefit rider, it is available from general insurers in their personal accident policies.And it is a very low cost product.
      MF returns are not guaranteed. Totally agree. Markets might be down when the child needs money. Quite possible. The solution to this is asset allocation.

      See the whole issue here is that all these questions are arising because we are discussing only one aspect of your financial life. You might have ten other goals and thousand other things that you need to think of before deciding to buy this product. As a financial planner, I help people to look at the whole picture. Hence, the answers are coming from that point of view. The answer to your concerns is not a product. What you are looking for is a solution which suits your needs.

      The asset allocation will help you overcome the problem of markets being up or down when you need the money. It is also true that returns are not the only thing that you need to look at when you are are planning for any goal, be it your child’s education or your own retirement.In a financial plan, these concerns are addressed adequately. Of course nothing can be guaranteed, but you are much more prepared than just getting into a situation and taking it as it comes.

      Regarding the money not being available to the child/spouse because others might grab it. To protect it from creditors you have the option of registering it under Married Women’s Property Act. This is a simple thing which can be done when applying for the policy itself In case of liquidation of assets to pay off people who you owe any amounts, the policies registered under MWP will not be considered. The other aspect of family grabbing the money is indeed very sad and could be true in many families. Even with these policies that pay at a later stage, what is the guarantee that the family would not want to take away the money at that time.The only solution that I see to this is financial literacy Involve your spouse in what you are doing to take care of her well-being in your absence. Let her know her rights and her options. Have all your papers updated and keep them in a safe place of which your spouse is aware. And please prepare a will!
      Trust this clears some of your doubts.

  • Mohan Sharma July 14, 2012, 8:19 AM

    Dear Kiran,

    Have gone through Mr. Jhaveri’s observations and I am of the view that insurance is must. AYSS is purely education related policy. It takes care part of the education needs if insured parent is not around. On death it pays and then payes at regular intervals as per the terms of the policy. In other words it supports the parent for Child’s education whether you are there or not.

    As regards Term insurance one can opt this plan under MWA.

    Mohan Dutt Sharma
    Executive Financial Planning Advisor &
    Child Future Planning Expert
    Aviva Life Insurance

    • Kiran Telang July 16, 2012, 10:41 AM

      Dear Mohan,

      I see that you are being loyal to your company by buying its product. Good for you and the company.

      • Mohan Sharma July 16, 2012, 2:18 PM

        Dear Kiran,

        Question is of not loyalty it is what required by the customer. I first anlyse the need of the customer and than provide the solution. After studying LIC, HDFC, ICICI & AVIVA Child plans only decided close the call with Aviva Young Scholar Secure.

  • Prasoon July 17, 2012, 2:39 PM

    There are many articles over the internet (including this one) about not to mix insurance and investment. Thanks to the author for putting things beautifully. Let me add my bit.

    Generally in any ULIP, to get a decent life insurance cover, you need to pay exorbitant premium – because it includes investment premium and other benefits premium as well. Now let’s say after 3-4 years of starting an ULIP, policyholder faces a financial crunch. Needless to say, one should be insured all the time. Now, He/she can’t tell the company to continue with insurance component and hold on investment component. Had he/she invested using Term + PPF + MF method, it would have been pretty easy.

    I think (and as author put it) one should have a Term Insurance, Accidental Insurance, Health Insurance, PPF and MF – it will cover all insurance and investment needs of an individual, if done properly. Finally it’s an individual choice to be with – simple or complex. Say whatever you are comfortable with – ‘Machine’ or ‘Any mechanical or electrical device that transmits or modifies energy to perform or assist in the performance of human tasks’.

  • natarajan July 17, 2012, 9:48 PM

    Online Term Life Insurance premium not returnable policy is good at cheaper premium.It was told by a insurance company the insured income must be more than 5 lacs per annum for a business man to take 50 lacs sum assured for 30 years term.Which they are not mentioning in their advertisement.In my case they simply received a annual premium of Rs.more than 15,000 and kept with them for months together.Further they have charged 3.5% of agents commission inspite of oral promise no commission.They directed me for medical test also.After few months I got back the money with some influence.
    What is the secret in that business by the well renowned HDFC Life insurance co., Ltd.,
    The annual income for a business man who go for online term insurance for a sum assured of Rs.50 lacs for a term of 30 years is it a correct condition of the life insurance company or not. Kindly let me know the truth.
    Natarajan

  • sunil kohli July 20, 2012, 2:01 PM

    I fully agree with the views expressed by Chinmay. For child educational needs you need assured returns and not something based on wishful thinking, like gains through stock market. From 2008 till date what is the CAGR of Mutual funds??? Are you ready for a lock in period of 15 years in PPF(with proviso to do partial withdrawals after 6-7 years).

  • Arun Shishodia July 20, 2012, 2:44 PM

    Sir,
    I purchase the I maximize plan from Aegon Religare through policy bazaar in February 2012.
    I want to know about this plan in details, or if any other plan with better security of my child future.

  • Naela July 24, 2012, 2:26 PM

    Dear Mr Hemant
    I am a 36 year old divorcee with one dependent (daughter 9 years old). I am a teacher by profession and am currently working with a management institute in Uttar Pradesh.
    I have three queries:
    1. 6 years ago I had opted for a Unit Linked Pension Plan from HDFC Life for my retirement planning, but now in view of IRDA ban on all pension plans from insurance companies, I am not so sure. Should I continue this plan, should I liquidate it, or should i stop paying further premiums, but don’t liquidate. Can you suggest any other suitable modes of retirement planning?

    2. I have one PPF Account in my name, which is now almost 13 years old. I plan to renew it for as many blocks of 5 years as is permitted (I believe its three times?). I plan to get one more PPF Account opened in my daughter’s name under my guardianship this year. Can the total amount deposited in both the accounts together in one financial year exceed 1 lac? If yes, what is the tax treatment? If my father transfers money (by way of gift) to my daughter’s PPF Account, will that be permitted?

    3. My father wants to invest an annual / lumpsum amount in some growth oriented investments for my daughter’s higher education (10-12 years horizon). What would be a suitable avenue? Definitely NOT children’s plans, of course.

    • Kiran Telang July 26, 2012, 12:59 PM

      Dear Naela,

      You may please contact a Certified Financial Planner in your city to help you out with your specific queries.

  • Abhinav Gulechha July 24, 2012, 2:41 PM

    Hello Kiran

    thanks for the post. You’ve explained in a very good way, how the emotional selling- especially in child education space, makes people buy these products, which are not wrong by design, but, may not address all the needs of the investor. This being a traditional product, need to wait and see what changes IRDA comes up with its new guidelines on traditional products.
    I sometimes think what percentage of people buying such child products, basis the fancy ads, actually do keep investing till maturity? are there any statistics on this front available? I guess they would not at all be as exciting as the advertisement:)

    • Mohan Sharma July 24, 2012, 3:00 PM

      Dear Abhinav,

      Have studied various child plans available today in the market. In most of the plans you have to pay till maturity and in some plans partial payments start coming from the 18th year of the child. There is only one plan AYSS in the market in which you have to only pay maximum for 13 years (according to the age of the child) and at the end of 13th year you start getting financial benefits. Aviva Young Scholar Secure Plan is an education related policy and has double death benefit. Child’s education is not effected whether insured parent is alive or not.

      Mohan Dutt Sharma
      Executive FPA &
      Aviva’s Child Future Planning Expert

    • Kiran Telang July 24, 2012, 3:10 PM

      Dear Abhinav,

      Thank you for your appreciation.
      Yes, many of the traditional products with shorter payment tenures most likely will be out in the new guidelines. Already those products that have a a sum assured that is less than 10 times the premium have lost their tax benefit.
      I have not come across any statistics which give a break-up f what kind of policies are surrendered etc. But I am sure it will be an interesting study!

      • Mohan Sharma July 29, 2012, 11:35 AM

        Dear Abhinav,
        Aviva Young Scholar Secure (Child Plan) can give you more than 10 % Sum Assured. In the event you can tell me your age alongwith your child’s age and amount you want to invest. Can reply you through this link the sum assured you will get in this plan.

        Mohan Dutt Sharma
        Executive FPA &
        Aviva’s Child Future Planning Expert

  • anuj July 29, 2012, 12:07 AM

    hi, its a nice article. please suggest another product (lic,ppf,fd,nse etc) which is risk free and gives a high return(preferably beating inflation) even if not an insurance product. i am willing to invest 2.5-3 lac for my each child (boy-10 years) and (girl-5 years)…purely return based which will give me a good amount in 10 and 15 years for both my children for their higher studies. please also mention tax liability.

  • srikant July 31, 2012, 2:37 PM

    I’ve taken ICICI policy and paying 3000 per month. for 1 year.What will be your advice ,to stop or continue the policy ?. I’ve term insurance and MF investments.

  • Ram August 3, 2012, 6:00 PM

    As parents, you start thinking of saving your money for your children as soon as they are born. I wanted to invest my money in pf or mutual fund when my child was born. However, when I read an article in Outlook Money on Aviva Young Scholar Secure, and consulted the adviser, I decided that it would be the best option to go for as of now. This is because while in pf or mutual fund will continue only till the time I am around and invest in them, the child plan would continue even when I am not around to pay the premiums. There is a waiver of premium option under which all future premiums will be waived off and the policy will continue when I am not there. This will not only help my child’s education but will also ease the financial burden on my family. I would recommend Aviva Young Scholar Secure to parents who, like Outlook money said, are “ultra cautious”.

  • Kamati August 6, 2012, 6:15 PM

    Hello Kiran,

    I have below 3 LIC policies(Jeevan Anand,Saral,Chhaya with each of 5L SA in addition to this one BSLI Term Plan with SA of 30L) and2 SIPs(BSL and HDFC Top 200). Now I want to start one more SIP with Rs 3000/- Per month. Above all these except BSL Term plan is handling by one of the licensed/Authorized broker. So please suggest me, still I need to continue this SIP also with him? Or directly shall I go and open the SIP with company itself? Is there any commission will go to this broker? Please suggest.

    Regards,
    Kamati

  • Senthil August 8, 2012, 9:43 PM

    Hi,
    Iam (Aged 32) father of a 4yr old child. My current Status
    Income: 12L pa
    Housing Loan 32,000 pm

    Term Policy – 1C Aviva ilife
    ULIP – 50,000K pa
    LIC Bheema Gold – 17000K pa.
    Mutual Fund : 3000pm SIP.

    Looking for good long term plans to support my daughters need and my retirement.

    Kindly suggest me suitable options.

    • Mohan Sharma September 17, 2012, 9:30 AM

      Dear Senthil,

      You can opt for Aviva Family Income Builder and invest Rs. 2 lacs every year for 12 years and then you can utilise the yearly returns of Rs. 4 lacs for next 12 years for your daughter as well as your retirement.

  • Avadesh Gupta September 17, 2012, 2:14 AM

    Never ever go with ICICI Prulife policies as they cheat. The insurance advisor’s will cheat you by promising something and end of the day you find that you get nothing in returns and you are at loss. I am one of the victim of ICICI Prulife.

    Be very careful while Investing especially with ICICI Prulife which is a loss making company as on date.

  • Mukesh September 25, 2012, 6:02 PM

    Hi,

    You review on child plans was very useful. Fortunately or unfortuantely I have purchased LIC child future/careen plan recently and paid first premium of 12000. SA is 8lakh,16yrs term, sons age 4, my age 39, and yearly premium with CWB is 48000. Now after reading the analyzis started feeling whther it would be worth while to continue. Please advice.

  • MUKESH October 12, 2012, 12:01 PM

    HI Kiran,

    Thanks for posting wonderful analysis on Child plan. I tool LIC child future plan during month for Jun2012 for SA 8LAKHS./48000 per year premium This is on my 4yr old son name.

    At the time of taking this policy i didn’t have much clue on the benefits and returns of this policy I took it in a hurry. Now after reading lot of information on Insurance, and its purpose, I strongly feel i have made a mistake. In addition for my old Endowment plans for 10laksh, I have recently taken ICICIC Online term plan for 60lakksh. So please advice whether it would be worth while to continue this child plan. Appreciate your responde

  • Bimal Das October 31, 2012, 2:28 PM

    Dear All,
    Grateful, if someone clarify my doubts on Aviva Young Scholar Plan which I had started 3 years back. As I am presently investing more in mutual fund throughg SIP, I do not want to continue the the scheme. Please suggest.

    Bimal

  • Ramesh Muppalla December 2, 2012, 5:02 PM

    Hi Kiran,

    I am looking forward to invest in ICICI for these plans.

    1) Child Plans
    2) Retirement Plans

    Kindly suggest couple of good plans as mentioned above.

    Regards,
    Ramesh Muppalla

  • Prashant K January 22, 2013, 2:48 PM

    Hi Kiran,

    I want some return after 5 year, so i got suggestion from HDFC life to go for sampoorna samadhi where i have to pay around 26000/- PA for 5 year, and will get return around 3 Lack total.
    and second one is ICICI prudential wealth builder plan where same information i got from their employee, same premium would be 25K PA and after 5 year return would be around 3 lack.

    please suggest me what should i do, which plan is better to go with, if you have any other idea then your welcome . pls assist

    Prashant Kumar

  • KAMLESH GUPTA February 19, 2013, 10:35 AM

    MADAM,
    i INVESTED IN ICICI PRUDENTIAL SMART KID PLAN. EVERY MONTH Rs.1500/ PM DEDUCT FROM MY SAVING BANK ACCOUNT SINCE 2006
    NOW I NEED MONEY FOR MY CHILD EDUCATION. PRESENTLY MY SON STUDIED IN DIPLOMA MECHANICAL ENGINEERING DEI.
    I HAVE NO OTHER WAY TO GET THE MONEY FOR FURTHER STUDIES. MY HUSBAND IS PENSIONER. PLEASE LOOK IN TO THE MATTER AND PAY SOME AMOUNT ATLEAST 60,000/- FROM MY POLICY.
    WAITING YOUR SUITABLE REPLY IN THIS CONNECTION.
    KAMLESH GUPTA

  • Vardhan March 18, 2013, 5:49 PM

    Hi Kiran,

    Request your advice. I am planning to gift a single premium policy to one of my relative who has a kid close to 3 yrs. The idea is to cover the kid’s educational related expenses. One option could be a bank FD, can you pl let me know if there are any other options providing better returns than bank FD for a tenure of 15 to 20 yrs.

    Thanks in advance.

    Regards,

    Vardhan

  • BINDER March 29, 2013, 5:17 PM

    Plz advice which policy to take for child education, ICICI SMART KID or AYSS both look lucrative. my financial details as follows :-

    gross salary – 8 lakh, government employee
    wife – home maker
    kids – only one son (2 months old)
    property – nil
    house rent – nil
    MF/PPF – Nil
    LIC – NIL

    I guess life is tough and i realised it bit late …so kindly give ur genuine advice how to invest and secure future of my son and wife . As of now I can only invest 5000- 8000/ per month. Plz need an urgent response..

    rgds
    binder

  • Mohan Sharma March 30, 2013, 3:44 PM

    Dear Mr. Binder,
    Have seen your details and would like to guide you that you should go for AYSS with Annual Premium of Rs. 50K or 1 Lac. You have to only pay for 13 years and not full policy term. With this plan buy one Term Insurance Plan (Aviva Life Shield Platinum) of Rs. 1 Crore for yourself. The payout benefits will also increase when you invest more, i.e., 50K or more.
    I have studied Aviva Young Scholar Secure Plan in depth. In the case for a male parent of 30 years with child of 0 age paying minimum premium of Rs. 25,000/- (Silver Option) it will work out as under and not the way you have said (I may be wrong, since have not worked on % etc., since it is a pure Child Plan) :
    Sum Assured will be Rs. 683,500/- from day one till the maturity of the plan. SA does not reduce at all in the whole Policy Term as mentioned in your reply. That figures are Guaranteed Death Benefits from Aviva.
    You do not pay premiums for the whole policy term. Maximum Premium Paying Term (PPT) is 13 years according to the age of the child. If child is of 2 years than PPT is 11 years only.
    In the year, i.e., 13th Policy year when you pay the last premium then Aviva start paying you Rs. 15,000/- for 5 years as Tuition Fee for additional coaching of the child. As child is of 18 years then Aviva pays Rs. 40,000/- for College Fee Support. At the age of 21 of the child Aviva will pay Rs. 568,500/-for Higher Education Support. Total of these payouts by Aviva works out to Rs. 683,500/- (15,000 x 5 = 75,000/- + 40,000/- + 568,500/-). This Policy starts supporting the parent from 14th year of the child till he / she is of 21 years. These are the crucial years when parents require support for the education of their child.
    This policy has built in Income wavier rider. It means that in case of unfortunate death of the insured parent all left over premiums will be paid by Aviva in to the policy account. Other parent does not have to pay any premium. As death happens to the insured parent, Aviva will pay Rs. 683,500/- to the appointee and will pay all the payouts at regular interval as mentioned above, i.e., Rs. 683,500/- (15,000 x 5 = 75,000/- + 40,000/- + 568,500/-). IN OTHER WORDS THE POLICY HAS DOUBLE SUM ASSURED.
    The amounts available with you from the 13th year onwards is Rs. 15,000/- + 25,000/- = 40,000/- since you will not be paying premium of Rs. 25,000/- after 13th Policy year.
    Aviva Young Scholar Secure Plan is an education related policy and has double death benefit. Child’s education is not effected whether insured parent is alive or not. For child educational needs you need assured returns and AYSS works on that pattern only.
    Mohan Dutt Sharma
    Executive Financial Planning Advisor &
    Child Future Planning Expert
    Aviva Life Insurance.

  • sivaprasad March 30, 2013, 4:25 PM

    Dear Binder,

    Do not get tempt for child plans. Please read this post completely and also comments. No need of child plan for any child. To secure child you should buy one term plan for sufficient amount. And invest the remaining amount in PPF and Mutual Funds.
    There is no any expert for child future planning. Lot of insurance companies are ready to grab you. So please go on read about financial planning and understand the basics. Do not combine Insurance and Investment in one product. Both are different. All child policies are waste.

  • BINDER March 30, 2013, 4:31 PM

    Dear Mr mohan,
    Thanx alot for your advice, I agree with your point of view, could you please draw a comparasion between AYSS and ICICI SMart KId plan…even ICICI SMART KID has built in income waiver rider and it also gives 5 – payouts from 18 year – 22 years. Only thing is that in ICICI SMart kid you are required to pay premium till the last year. So may I request you to kindly draw a detailed comparasion between these two policies…

    I appreciate your quick response and concern.

    rgds
    binder

  • BINDER March 31, 2013, 11:58 AM

    dear siva prasad,
    thank you very much. i like your honest and blunt opinion. so do you recommend any term plan?? have no idea actually…you would have seen by financial status as mentioned in previous post. so can you help in both investment and insurance? would surly take ur advice seriously

  • Mohan Dutt Sharma March 31, 2013, 5:44 PM

    If you through this chain you will know about both the products. At this link comparison cannot be provioded. Child plan is at its place and Term Plan is at its. From the above chain you will observe that I myself have sold AYSS alongwith a Term Plan of 1 to 1.5 crore to my Delhi clients. In the event of any mishappenning Term Plan is Financial Security for the family and AYSS regular education support for that child. Term Plan should be covered under MWPA so that no one can touch that money except the beneficiary.

    Mohan Dutt Sharma

  • Siva Prasad March 31, 2013, 9:08 PM

    All the best Mr. Binder. One day you will realise. But by that time, you may have lost your money.

  • sivaprasad April 1, 2013, 6:29 PM

    Sir,
    For regular education support we have to invest in Best Return Products. Not in Insurance Products which are not inflation protected.
    You can use child plan template available in this website (www.tflguide.com), to know how much to invest for your child education.
    Selection of termplan varies person to person. You can choose from Aviva, Kotak or HDFC.

    Thank You
    SIVA PRASAD

  • BINDER April 2, 2013, 11:21 PM

    Siva Prasad
    thank you very much. I completely agree with ur advice, term plan and MF best options. I am not going for any child plan…if you have any good term plans in ur mind, then plz advice

    rgds
    binder

  • VIVEK June 3, 2013, 9:11 PM

    ONE OF MY FRIEND HAS INVESTED HIS HARD EARNED MONEY IN ICICI PRUDENTIAL & THEY CHEATED HIM , PLEASE FORWARD TO ALL YOUR FRIENDS THAT PLEASE NEVER GO FOR ICICI PRUDENTIAL ,PLEASE NEVER GO FOR ICICI PRUDENTIAL

  • Ruhail Khan August 27, 2013, 6:30 PM

    Hi!
    A few years back, I purchased the ICICI Pru Smart Kid policy for a tenure of 13 years at a monthly premium of INR 20k and went about investing for about 13 months and by that time realized that the policy networth had come down to approx INR 90k!
    I decided against paying anything further and sought a closure and was paid a petty amount…[I never saw my relationship manager, didn’t have the investment switch option ever utilized etc]
    Now some months back I got a call from these guys waxing lyrical and high on empathy wherein I was promised a composite amount at a certain interest %age[INR 300k plus !] but driven by the request that I’ve to invest INR 50k instantly in some new plan and then an “x” amount on a monthly basis for 7 years post which I’ll again be eligible for a decent corpus…I refused the offer at that point of time…
    But coming to think about it all now, can i somehow get back to them and retrieve the projected and promised amount from them [My investment of INR 260k was hard earned money]…
    Kindly advise,

    Warm Regards,

    Ruhail.

  • sankar September 3, 2013, 3:59 PM

    Hi Kiran,

    Nice information. I found its very useful for my kids future investment plan.

    Regards,
    sankar

  • sanjeev December 24, 2013, 1:23 AM

    Hi Kiran

    It was enlightening to read all this.

    I have paid four premiums for ICICI smart kid policy. Now after reading this review my doubts and myths about these policies are clear and I do not want to pay further premiums. I want to know the options I have now to get my money back at least without any loss from the amount paid in premiums.

  • Avadesh December 25, 2013, 1:50 PM

    ICICI Pru Smart kid is a fuckhole product. I would not at all recommend this product to any body. I paid a premium of INR 50k per month. This plan was purchased at the ICICI Bank counter where in the Relationship Manager promised me increase in 20% every year on INR 50K with a compound interest benefit every year. After 3 years when i checked after paying INR 1.5lac tthere was no such growth in the invested fund. After 3 years instead of the increasing the fund to INR 218400 when checked on the website the fund value went down to INR 1.35 lac. (Loss of 15 k without any benefit for investing the money with ICICI for 3 years) Even local grocery shop would have paid nice interest if the money was lended to them. I stopped paying premium after the 3rd year, the height was ICICI Pru started deducting certain %age from the accumulated fund every month. So u again incur a loss here.
    So today, the best thing is to invest the money in property at least the value will increase after certain period of time. If still you are not convinced with this you may pay ICICI Pru and I m sure ICICI Pru will keep increasing their property in India with your hard earned money. Thanks.

  • jayant January 21, 2014, 7:00 PM

    I have paid premium for this policy for last 6 years amounting to Rs 65000/- and as on date (jan 14) its value is only Approx Rs 57000/-.I have been advised by ICICI rep that since in first year admin charges were 20% and subsequently 5 % for next three year therefore less units were brought into my account therefore less fund value.What is your suggestion should i continue or withdraw.

  • Anurag Robert Kujur July 3, 2014, 4:27 PM

    Hi. Kiran.
    I am 38 years of age and paying the premium of a policy Smart Kid RP Rich Fund II of ICICI prudential since July’2008.
    What would be the value if I withdraw the amount, if possible ?
    After reading the various comments on this policy I am confused whether to continue or not.
    Kindly suggest what would be good for me next.
    Regards,
    Anurag.

  • Anurag Robert Kujur July 7, 2014, 10:10 AM

    Hi Kiran,
    I am having a policy from ICICI pru named Smart Kid RP. I read few articles and comments about this policy that it is not a good policy to invest on and I am confused what to do, should I continue or withdraw it. I am having this policy since 2008 August.
    Kindly help.
    Regards,
    Anurag.

  • Kapil July 21, 2015, 6:51 AM

    Hi Kiran,

    I am 36 year old and an NRI. I have two plans and wanted to discuss with you whether I should continue these or not ? If discontinuing, will I be getting my money back or how much part will be returned. Happy to have a private conversation if you can guide me through.

    1) HDFC pension plan started in 2010 and haven’t paid the current installment due this month. I am paying 60000 annually in two installments. Current fund value is around 4 lacs.

    2) ICICI prudential smart kid: Paid 3 yearly installments of 55,000. I haven’t paid the current installment due in June/July.

    Thanks
    Kapil

  • Naga February 11, 2016, 7:49 PM

    Hi Kiran,

    Thanks for publishing such good information. I would like to share some of my bad experiences with Insurance Plans. About a decade back I invested in MAX Insurance I made payment upto 2 years (2 lakhs) and had discontinued doe to some bad phase, later after some year while I inquired about renewal MAX New York Life Insurance said No & all the money I paid is lost, now a few years back invested in ICICI Smart Kid Policy I have invested for 3 years now (1 lakh every year) & this year payment is still due again the circumstances I am at right now I may not be able to make the payment this year and don’t know what would be the surrender value. Looks like such plans may not go right for people like me, not sure how many out there like I am. Hope these experiences may help someone….

  • Sukesh June 5, 2016, 12:12 PM

    I want to purchase a child plan please suggest me which is the best chidplan for me

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