Pa­ram­e­ters to Con­sider

Consumer Voice - - Bfsi -

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.

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