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Factors to consider while taking a child insurance plan aimed at higher educationI’m Nimish, 32 years old, and work as a software engineer. I was blessed with a baby boy last year, and on his first birthday, I’m planning to take a child insurance plan to support his higher education in the future. While researching online, I came across the Waiver of Premium add-on. How essential is this feature in a child plan? What are its key benefits, and how much additional cost does it typically add to the premium?NimishAt 32, you have time on your side and a long investment horizon, which is a big plus. It’s also a judicious decision to start as early as the child turns one. When it comes to funding goals such as higher education, time is a powerful ally. The earlier you begin, the greater the opportunity for your investments to compound and build a sizable corpus over the years.However, successful financial planning is as much about continuity as it is about promptness. This is where the Waiver of Premium comes into the picture. A Waiver of Premium feature essentially acts as a financial safety net. In the unfortunate event of the parent’s demise during the policy term, the insurer takes over all future premium payments. The policy continues uninterrupted, and the child’s future goals remain protected without placing the burden of continuing premiums on the family.To understand its impact, consider a parent investing ₹10,000 a month in a child plan for 18 years, with the objective of creating a corpus for higher education. If something were to happen to the parent after five years, the family may understandably prioritise immediate financial needs over continuing long-term investments. Without a Waiver of Premium feature, the child would get a death benefit of ₹12 lakh or the fund value (whichever is higher) and the policy would lapse, resulting in inadequate funds for the child’s education. With the feature in place, however, the insurer continues funding the remaining premiums for the next 13 years. As the insurer steps in and pays the remainder of the premium, the investment journey continues as it intended.Many child plans also combine the Waiver of Premium benefit with additional protection features. Depending on the product, families may receive:* A lump-sum payout to address immediate financial obligations, and* A regular income benefit to help meet regular expenses.Together, these provisions help provide financial stability in the short term while preserving long-term goals. The encouraging part is that the Waiver of Premium benefit is often available at a relatively modest additional cost. In many cases, it can be added for a small fraction of the overall premium, making it one of the most cost-effective ways to strengthen a child plan. For a limited incremental outlay, parents can ensure that years of disciplined saving are not jeopardised by an unforeseen event.There is also a broader reality worth considering. Rising healthcare risks, lifestyle-related illnesses and financial uncertainties mean that protecting future goals has become just as important as funding them. Parents, today, are increasingly looking beyond returns and focusing on continuity. This feature ensures that a child’s aspirations are safeguarded, irrespective of the circumstances.Viewed from that perspective, the Waiver of Premium feature is a mechanism that helps ensure your child’s educational ambitions remain funded as planned, even if life becomes uncertain. When evaluating child plans, it is certainly worth exploring how this feature works, the protection it offers, and the additional cost involved, as it can make a meaningful difference to the long-term security of your child’s future.The writer is Joint Group CEO, PB FintechPublished on August 1, 2026
