Calculate future education corpus, required parent life cover, and monthly SIP investment needed for your child.
Goal Details
0Yrs15Yrs
4Yrs30Yrs
50000010000000
5%15%
Invested Amount
Estimated Returns
Future Inflation Goal Corpus
In 15 years (at 18 yrs)
₹83.54 L
Required Monthly SIP₹16,557/mo
Recommended Parent Term Cover₹1.14 Cr
Investment Horizon15 Years
Total Investment Required₹29.80 L
Estimated Wealth Gain₹53.74 L
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What Is a Child Insurance Calculator?
A child insurance calculator evaluates the future inflation-adjusted cost of your child's education or marriage goal and determines the necessary term life cover and monthly investment required.
Planning for a child's higher education requires solving two distinct financial challenges: building wealth to fund college fees 15 years from now, and protecting the goal against the unexpected loss of the earning parent.
This calculator computes the exact impact of 10% annual education inflation on today's college fees and outlines the optimal combination of term life insurance and equity mutual fund SIPs.
Child Education Cost Inflation Formula
Education costs in India grow significantly faster than general consumer price inflation. Financial planners standardise education inflation at 10% per annum.
Term Plan + Equity Mutual Fund Strategy vs Traditional Child Plans
Financial experts consistently recommend decoupling life insurance from investment when planning for a child's future.
Comparison of Pure Term + Equity SIP Strategy vs Traditional Child Insurance Plans.
Feature
Term Plan + Equity SIP
Traditional Child Plan
Expected Annual Return
12% - 14% CAGR (Equity Index)
5% - 6% IRR (Endowment)
Life Cover Amount
Rs 1 Crore+ for low premium
10x Annual Premium (Rs 10L - 20L)
Flexibility & Liquidity
High (pause SIP or redeem anytime)
Low (strict surrender penalties)
How to Use This Child Insurance Calculator
Select Goal Tab: Choose between Education Goal (Target Age 18) and Marriage Goal (Target Age 25).
Enter Today Cost: Input the estimated fee or expense in current rupees.
Adjust Inflation and Return: Keep default 10% education inflation and 12% equity return expectations.
Review Protection & SIP: Check the inflation-adjusted future goal corpus, recommended parent term cover, and monthly SIP.
Frequently Asked Questions
How much cover is needed in a child insurance plan in India?
A child insurance plan should provide a sum assured equal to the inflation-adjusted future cost of higher education plus any outstanding parent liabilities, typically between Rs 50 lakh and Rs 1.5 crore for private higher education.
What is education inflation rate in India?
Education inflation in India averages 10% to 12% annually, which means college tuition fees double approximately every 6 to 7 years.
What is Waiver of Premium (WOP) benefit in child insurance plans?
Waiver of Premium is a critical feature where, upon the tragic demise of the parent during the policy term, all future premiums are waived by the insurer while the policy continues and pays the target corpus at maturity.
Is pure term insurance plus equity mutual funds better than traditional child plans?
Financially, combining a term insurance policy on the breadwinning parent with a dedicated equity SIP (like Nifty 50 or Flexi Cap funds) generally yields higher net returns and lower expense ratios than traditional child endowment plans.
How much will college education cost in India in 15 years?
An engineering or MBA course costing Rs 15 lakh today will cost approximately Rs 62.6 lakh in 15 years assuming a 10% annual education inflation rate.
What is the ideal age to start a child insurance or education fund?
Starting at birth or before the child turns 3 years old gives a 15 to 18 year compounding runway, dramatically lowering the required monthly investment compared to starting when the child is 10 years old.
Are child plan maturity proceeds tax-free under Section 10(10D)?
Maturity benefits from traditional child life insurance plans issued with annual premium up to Rs 5 lakh are tax-exempt under Section 10(10D), subject to prevailing tax rules.
Can I take a partial withdrawal from a child insurance plan for school fees?
Child ULIP plans permit partial withdrawals after a 5-year lock-in period for educational milestones like school admission or coaching fees.
Should the insurance policy be bought on the child or the parent?
The life insurance cover must always be taken on the earning parent, who is the financial provider. Insuring a minor child provides no financial risk protection to the family.
How does this child insurance calculator work?
This calculator inflates today's education cost to its future value at your selected inflation rate, computes the required life cover sum assured, and shows the exact monthly SIP needed to reach the goal.
What is Fermor?
Fermor is a financial platform for India. Every calculator is free to use, and a free account is available to save your results and access them later. Fermor is building an automated financial action system using the Account Aggregator framework to connect real accounts and close the gap between knowing what to do with your money and actually doing it.
Disclaimer: Figures provided by this calculator are estimates based on user-entered inflation rates and investment return assumptions. Mutual fund investments are subject to market risks, and past performance is no guarantee of future returns. Life insurance policies issued by LIC, HDFC Life, ICICI Prudential, or SBI Life are subject to underwriting terms and policy conditions. Consult a SEBI-registered investment adviser before making investment decisions.