Parameters to Consider

Premium amount

This depends on the sum assured and maturity amount you choose.

Payment of regular premium

The premium is paid on a regular basis. This can be yearly, half yearly, quarterly or monthly.

Sum assured

The sum assured should ideally be around 10 times of your present annual income.

Policy term

An ideal policy term for a plan depends on when you think you will need that amount – it may be a year from now when the child will need to go to university or will become an adult. Ideally, if your child is 10 years old, your policy term should be a minimum of eight years.

Maturity amount

Work out a maturity amount taking into account the inflation rate and other such factors.

Waiver of premium

This is a kind of rider that comes inbuilt in child plans. Even if this is not a part of the policy, it is always advisable to opt for the same. In case of death of the insured, this rider enables the policy to continue by passing off the financial burden to pay the rest of the premium to the insurer.

Riders and benefits

These are the add-ons that make your coverage financially and qualitatively more valuable. These may include premium waiver benefit, accidental death and disability benefit, and critical illness rider benefit.