Insured Family Is A Secured Family Short Essay On Pollution

Family Finance: Bengaluru-based Sahoo needs to revamp his insurance portfolio, streamline investments

Apr 10, 2017, 06.30 AM IST

Sukanta Sahoo is a software engineer and lives with his homemaker wife and a three-year-old child in Bengaluru. He has a net worth of Rs 7.5 lakh and brings in a salary of Rs 65,000 a month, of which he invests Rs 19,000.

His goals include saving for contingencies, child’s education and wedding, retirement, and building a house. However, he will have to put off the wedding and house goals for now due to lack of surplus.

Financial Planner Pankaaj Maalde suggests he put together his emergency corpus of Rs 2.6 lakh by allocating his cash, fixed deposit and insurance surrender value.


*Due to lack of surplus, investment for this goal will begin only after a rise in income. Annual return assumed to be 13% for equity, 8% for debt. Inflation assumed to be 8%.

This amount should be invested in an ultra short term debt fund. He can then prepare for his child’s higher education in 15 years, for which he needs Rs 50 lakh. To meet this goal, Sahoo will have to start an SIP of Rs 8,500 in equity funds and no other resource has been allocated to this goal.

For retirement in 23 years, he will need Rs 3.5 crore. Maalde suggests he allocate his PPF and EPF corpuses, continuing to deposit Rs 1,000 in the former. He should also use the insurance maturity value and equity mutual fund corpus for this goal. In addition, he will need to start an SIP of Rs 12,500 in equity funds for the given term.

Since this doesn’t leave him with any surplus, he will have to put off the goal of his kid’s wedding till a rise in income. For this, he will need Rs 85 lakh in 22 years and needs to start an SIP of Rs 5,500 in equity funds.

Insurance portfolio

Premiums are indicative and could vary for different insurers.

As for insurance, Maalde suggests Sahoo surrender two of his four traditional plans as well as the Ulip. He can retain two plans but must buy a term plan worth Rs 1 crore. He also needs to pick a health plan of Rs 10 lakh with a deductible of Rs 3 lakh. He must also buy a Rs 25 lakh critical illness plan and an accident disability plan of the same amount. The revamp will help bring down his total premium cost.

(Financial plan by Pankaaj Maalde Certified Financial Planner)

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Always everyone tries their best to fulfill all their responsibilities and take care of their family. But there is no guarantee for our lives, it comes with risks and unforeseen incidents that can put our family's security in water. But as the topic says an insured family is secured family, because it would provide money to our family if something bad happens to us. For the security of our family one thing we could do is take an insurance. And not only for our lives but for our vehicles also we have insurance plan. So that if any accident happens to us and our vehicle we will get both insurances. There are benefits in taking insurance. For individual life in case of unfortunate death of life assured during the policy team, provided all premiums are paid up to date. In the case of joint life. The death benefit is payable on death of each life, provided the policy in force. Thus for making our family secure it is advisable that we must take insurance so that it will benefit in future.

Insured Family Is A Secured Family Essay

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