I am an NRI from Dubai, aged 32 and is looking into investing, insurance plans etc.
I would like to know on how to start since I am very new. I am confused and would like to know if I have start with an insurance plan, or savings or fixed deposits or mutual funds.
I am thinking of taking an Insurance at the start and would like to know what type should I look into.
- Buy (ONLINE) Term Life Insurance to the tune of around 15-20 times of your yearly income. Once you do this, then never look back at Life Insurance. Life Insurance is risk mitigating tool but not an investment product.
- Buy enough health and accidental insurance (based on your country specific social security measures).
- Create an emergency fund of at least 6-12 months of your committed expenses.
- Identify the financial goals of your life. Based on that choose product and invest. But strictly avoid any insurance products as the investment product.
Would a whole life insurance such as Zurich Future where the insurance is worldwide and is also an investment plan – would such a plan be beneficial. Wouldn’t this serve as a health and accidental insurance too.
Regarding financial goal – I am thinking of investing an amount quarterly or yearly – if possible monthly – for another 10 years and expect a good interest on the amount invested.
Also, I am staying abroad – and would like to know is there any trusted vendors online that could help in buying funds and can be managed online which would be helpful as an NRI
Never combine insurance with investment. I know an agent me be advising this product as the WORLD’s BEST product. Just ignore such selling tactics.
Your goals must be specific not doubtful.
For buying Mutual Funds, you can either use respective Mutual Fund companies portals or the free platforms like MF Utility.