Your articles are mindblowing and too informative. Thanks a ton.
I am 30 year old Software engineer. Working in IT company. Anual income around 6lacs. My wife and My 1 year daughter is dependent on me.
I am investing:
RD: around 24000 a year
PPF: around 50-60,000 a year
Sukanya Yojana: around 20,000 a year
New Assurance mediclaim: COvers my wife, daughter and me of Rs. 1 Lac premium around 4000 year
LIC of my wife dont remember the name of policy: 14000 a year
Planning to Buy SBI Term policy this week for me of 20 Lacs: 1000 premium
I am planning to invest 100,000 lumpsum in ELSS & SIP.
Can you please suggest what amount should I invest in which SIP and ELSS? As I am beginner and I have read all your articles and comments too. As you are experienced in advising please suggest some names for SIP and ELSS for long term.
Also need one more help,
Is it okay to buy term for now? As my father insist to first take SBI term covers 20lacs @ 1000 premium.
I go thru some term plans on policybazaar.com with sum amount 1 crore and duration till 75-80 years. I am very much confused on this. Which is better HDFC/ICICI/Aegon/LIC/SBI ? Policybazaar employee suggested me to go with HDFC Life as its term is max. 40 years while others have around 30 years. + If I add Rider of Critical Illness they have 19 illness. I have seen MAX and AEGON are cheaper. My father is govt. employee suggest to go with LIC or SBI as Rest companies are private sector and they think there might be issues in claim settlement compare to Govt. and there might be chances of shut-down of business.
I am too confused what to do? buy term or not?
Please suggest what you would do if you are in my situation.
Please help me.
First identify your goals. Then go for products. You are doing reverse. Why you are investing in RD, PPF and LIC products?? No specific reasons right?
Ideal insurance coverage must be around 15-20 times of your yearly income. Increase your health insurance coverage. Buying small amount of insurance is risking your own family. Also, buying today is cheaper than tomorrow. Rest you decide.
Regarding mutual funds and term insurance, refer my earlier blog posts.
- Top 10 Best SIP Mutual Funds to invest in India in 2017
- Top 5 Best Online Term Insurance Plans in India in 2017
Thanks for the answer buddy.
RD: I have planned to invest in RD for school admission of my daughter, as of now my daughter is 1 year old.
PPF: To save tax and investment purpose. (Suggested by elders)
LIC: I dont have any LIC on my name. The premium which I am paying is for my Wife’s LIC. Her father bought some years back for her.
New India Assurance: I already have 1 Lac medical insurance for My wife, Daughter (1yr) and Me. Should I close this and go with new?
I think 1 cr is enough for term plan. Also want to know can I add any Riders on it? Like Critical Illness, is it worth to add? And one more help which health insurance would I buy? i mean which company?
I have wide options but confused. You have much better idea and experience on this. As an expert please help me to choose Company for Term insurance and Health Insurance. Please 🙂
In that case, you can continue RD. PPF use as debt product for doing proper asset allocation based on time horizon of goal. If your wife not earning, then insurance is waste for her. Better to close at the earliest.
Why close existing insurance? I am suggesting to increase the sum assured. Rs.1 lakh not suffice to you 3.
Regarding insurance, I already written a detailed explanation. Refer the above provided post.
I think you not read both the links I shared. Better you go through both of them.