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SmartKid Regular Premium - A product of ICICI Prudential

Smart Kid is a insurance product for securing the future of the child. It focusses on the security of the education of the child and promises to take care of it even in your absence. Following are salient features of this product:

• Guaranteed Financial Benefits: Regular payments at critical stages in your child's life, like Board examinations, Graduation and Post-graduation.
• Sum Assured is paid immediately: Ensures that your loved ones stay financially secure, even in your absence.
• All future premiums are waived: Ensuring that your family is not financially burdened in your absence.
• Policy benefits continue: The educational benefits of the policy continue, ensuring that your child can realize his or her dreams without any hassles.

There are two options available under this product. Cash flow under these options are enumerated below:

Option I		Option II
Age of the Child	Amount Receivable	Age of the Child	Amount Receivable
15 years	20 % of s.a.	18 years	25 % of s.a.
17 years	25 % of s.a.	19 years	20 % of s.a.
20 years	25 % of s.a.	20 years	20 % of s.a.
22 years	30 % of s.a. + bonus	21 years	20 % of s.a.
-	-	22 years	20 % of s.a. + bonus

Eligibilty

Age of the Policy Holder	20 to 60 years
Age of the Child	0 to 15 years

How much does it cost
For a Rs.19,50,000 sum assured the yearly premium at age 30 of the policy holder and age 1 of the child, the premium is Rs.100000, payable for a period of 21 years. This policy will mature after 21 years when the child becomes 22 years of age.

Detailed Illustration

Beginning of year	Parent's Age	Child's Age	Parent's Riskcover	Annual Premium	Guaranteed Returns	Bonus @ 6% investment	Bonus @ 10 % investment
1	30	1	1950000	100000		0	0
2	31	2	1950000	100000		0	0
3	32	3	1950000	100000		0	0
4	33	4	1950000	100000		0	0
5	34	5	1950000	100000		0	0
6	35	6	1950000	100000		0	0
7	36	7	1950000	100000		0	0
8	37	8	1950000	100000		0	0
9	38	9	1950000	100000		0	0
10	39	10	1950000	100000		0	0
11	40	11	1950000	100000		0	0
12	41	12	1950000	100000		0	0
13	42	13	1950000	100000		0	0
14	43	14	1950000	100000		0	0
15	44	15	1950000	100000		0	0
16	45	16	1950000	100000		0	0
17	46	17	1950000	100000		0	0
18	47	18	1950000	100000	487500	0	0
19	48	19	1950000	100000	390000	0	0
20	49	20	1950000	100000	390000	0	0
21	50	21	1950000	100000	390000	0	0
22	51	22	0	0	390000	1183278	2408758

  Analytical views of the above illustration

• Considering accumulation of bonus on the basis of 6 % investment, the yield works out to 4.24%
• Considering accumulation of bonus on the basis of 10 % investment, the yield works out to 6.96%
• To provide a comparable solution with LIC, a combination of table no.90 (Marraige / Education Endowment) and table no. 164 (Anmol Jeevan) through MagicPlan Secure Child can be given.
• Under MagicPlan Secure Child, with a premium of Rs.100116 payable for 17 years only and using the bonus rate derived from LIC's benefit illustration for plan 90, the return works out to 8.03%
• For quick reference, comparative benefits are enumerated below

Child's Age	SmartKid		MagicPlan Secure Child
	Premium : Rs.100000 for 21 years		Premium : Rs.10116 for 17 years
	10 % Investment	6 % Investment	Bonus derived from LIC's Ben.Illustration (10% scenario)	Current Bonus
18	487500	487500	795887	625457
19	390000	390000	395239	305639
20	390000	390000	419711	334911
21	390000	390000	443582	363582
22	2798758	1573278	2431680	2182080
Yield	6.96 %	4.24 %	8.03 %	6.65 %

Date of Analysis : 2nd Oct.2008

Disclaimer:
The above analysis is based on the illustration provided by the respective insurer. The analytical views expressed above are only personal views of the presentor
of this illustration and are not exhaustive. The presentor of this analysis does
not in any way undertake any responsibility of the company's future
performance related to the above product.