Smart Kid Sales Pitch to secure child’s education

Good morning Sir/Mam! Thank you for giving us your time and this opportunity to serve you!

This pandemic condition in India has impacted every section of society. It has impacted seniors, it has
impacted co-morbid patients.

One aspect that nobody has really spoken about is that how it has impacted children. It is true that children
were the last to get infected by Covid but it does not mean that children were not affected by Covid. There
was a very recent news article that reported that 20,000 children lost one parent to covid. What is even
sadder is that around 5000 children lost both the parents to covid. Now what happens when a child loses
one parent or both parents, the entire future of the child comes into great difficulty.

Now it is impossible to emotionally replace a parent, but in case of loss of one or both parents, who should
take responsibility of financial provisioning for the education of child?

Who do you think will pay the future school/college fees and bear other expenses? Should it be Uncle?
…Aunt? … Should it be Grand Parents? … Relatives? … Neighbours? Or should it be a Life Insurance
Company who will take care of this?

I agree with you that responsibility of ensuring that child’s future or child’s growth is not impacted by the
loss of a parent or both parents, should reside with Life Insurance Company. And to ensure that we are
therefore we are bringing to you a very unique proposition “Smart Life” to protect the future of the child
using the Waiver of Premium clause.

How does the Waiver of Premium clause works?

Let us say you are planning to save for your child’s education and you want to save a lakh of rupees for
next 7 years where the money will come out after 12 years during child’s graduation or post-graduation
time. Now if something happens to the parent after 2 years or 3 years, then life I said, emotionally nobody
can replace the parent, but ICICI Prudential with Waiver of Premium clause will assume the responsibility of
a parent and pay the future premiums. For example if the episode happens in 2 nd year, then 3rd year
premium, 4th year premium, 5th year premium, 6th year premium and 7th year premium, i.e. a lakh of
premium of 5years which is 5lakh of rupees will be paid by ICICI Prudential towards the child education
taking the role of absentee parent.

So Sir, as I said it’s emotionally impossible to replace a parent but financially, it is possible to ensure that
role that parent would have played by paying the subsequent premiums is assumed by the Life Insurance
Company.

Furthermore it is important that you put this plan into the trust using the 1874 Act of Parliament which is the
Married Woman’s Property Act, where the mother can be the trustee and child will be the beneficiary. What
happens because of this is that if one or both parents in case there are current or future creditors who want
to stake a claim of this money which is meant for child’s education. If there are unscrupulous relatives, if
there are neighbours, or anyone who would want to take advantage of family which is disadvantaged;
cannot do so because now it will be part of the trust and this money cannot be attached. And the trustee
has to use this for the benefit of the beneficiary who is the child, otherwise there are severe legal
repercussions.

So by using Waiver of Premium & Married Woman’s Property Act with child as beneficiary we can protect
children from this pandemic.

Most interesting thing is that how much does this Waiver of Premium cost and this is where it’s a huge
opportunity. WOP costs less than 10 rupees a day! For less than 10 rupees a day you will ensure that
contributions that were supposed to go towards child’s education in the form of premiums, whether you
live or something happens to the parents, these contributions will remain intact. God forbid something
happens, death benefit will be paid immediately which will be under Married Woman’s Property Act so the
trustee will have to use the money for the beneficially which is the child. And more importantly because the
future premiums will be paid by ICICI Prudential, child plan will continue and when the child is ready for
his/her education or graduation or post-graduation this money will be available to him/her.
We are also trying to suggest that while there are multiple funds, based on risk propensity of clients, you
have income funds. Our income fund has performed without any defaults in last 20 years. There is also a
very interesting fund called as India Growth Fund. Now what is India Growth Fund? India Growth Fund
invests in sectors like Pharma, Banking, FMCG. As India comes out of the 2nd Covid wave, these are the
sectors that are expected to or perhaps see the benefit of economy opening up. This fund is young fund &
in the time we have experienced that it has outperformed the benchmark. This fund has delivered 75%
returns while the Benchmark Fund has delivered only 69% returns.

So we believe that the combination of Waiver of Premium in Smart Life along with Married Woman’s
Property Act where the mother is trustee and child is beneficiary and depending on risk propensity of
customers if you are comfortable with equity then India Growth Fund can be a very very potent suggestion
which will fulfil tax free equity needs and the needs for providing for your child’s education. Let us all come
together and protect the children from this pandemic.

Thank You and have a great day!