How is the Basic Coverage amount calculated in IT0168 for Insurance plans?

Hi All,
I am in the process of configuring benefit plans for IT0168 -GB can anyone of you help me with the below?
How is the basic coverage amount caluclated - can you please advise configuration for the same?
Many thanks in advance.
Regards,
Anjali.

1. Configure the Plan Type for the Insurance Plan.
2. Configure the Insurance Plan
3. Coverage Grouping ( if needed )  - Different coverage based on Employee IT0001 information / IT171 Grouping.
4. Configure the Coverage Variant - If coverage varies by ( Parameter grouping ) Gender, Age, Smoker, Length of Service,
5. Configure the Coverage where one specify the actual cost per unit of coverage ( example 0.25 cents per $ 1000 coverage ).
Path for above items...
Personnel Mgmt ---> Benefits ---> Plans -
> Insurance Plans....

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