Full review
Option selection — which to choose?
Option 2 or 3 (5% or 10%/yr SB) is appropriate for most buyers: you get meaningful liquidity during the child's early adult years while still receiving a substantial maturity payout. Option 1 (0% SB) makes sense if you expect to fund education from other sources and want a lump sum at the child's 25th birthday. Option 4 (15%/yr) is best if education abroad is the goal and you anticipate peak cost at ages 20–24 — but the maturity payout drops to just 25% BSA plus full bonuses. The SB option cannot be changed after policy inception.
PWB rider — always add it
The Premium Waiver Benefit rider on the proposer (parent) is the most important optional add-on for any children's plan. At typical ages and BSA, the PWB premium is small (₹1–3 per ₹1,000 BSA/year). In exchange, if the parent dies before the child turns 20, all future premiums are waived — the child receives all SBs and the full maturity payout without any further payments. This is the most cost-effective risk mitigation available for this product.
What we'd compute differently
Our headline XIRR uses the middle premium-paying term (15 years against a 21-year policy term),
excludes optional rider premiums from the cash-flow base, and assumes the latest declared
simple reversionary bonus rate holds for the full term. Try other PPTs and bonus assumptions
on the Jeevan Tarun calculator.