Dear Sreekanth,
Kindly guide me in my financial planning. I do not understand the nitty gritty of finance hence I am finding it very difficult. I am 37 years old working in UAE. My wife and child are Indian citizen. Child is one month old. As of now the only investment I have made is in buying a house. I wish to do the following planning.
- I want to take a life insurance. I am working in oil and gas sector. Our plant has all safety related things in place however there is a risk involved as we deal with highly toxic gas. Will I get life insurance.? If yes can you guide me with some LIC plan? Also I want to get insured for permanent and temporary disability (again is it possible). I want to take two insurance one from LIC and one from some other company. I believe LIC is safe as it is government operated.
- I want to insure my wife and child also. I also want a cashless mediclaim policy for self and family. Please suggest some good plan. Wife is 29 years old housewife and child is one month old. No one in my family including me has any health issues.
- I want to plan for retirement. Please consider 55 years as retirement age. How do I invest for the feature. Can you kindly suggest some good schemes. I cannot apply for PPF as I am NRI.
- I want to plan for my child's feature. Education, If everything goes well then I wish to send him to US for higher studies post graduation. I also want to plan for his marriage.
3 Answers
Dear Arun,
1 - You may consider buying a Term insurance plan. Kindly avoid buying money-back or endowment kind of traditional life insurance plans. You may submit the proposal form to LIC and do disclose all the required information honestly, mention about your occupation details. If LIC thinks that your occupation is in high risk profile, they may charge extra premium (premium loading) and issue you the policy bond.
If your spouse is not an earning member of your family then life insurance is not required in her name.
Read:
http://www.relakhs.com/traditional-life-insurance-plan/
http://www.relakhs.com/best-online-term-insurance-plans-india/
2 - You may buy a family floater insurance plan. Kindly go through below articles;
http://www.relakhs.com/nri-buy-health-insurance-india/
http://www.relakhs.com/best-family-floater-health-insurance-plans-details-checklist-comparison/
http://www.relakhs.com/best-health-insurance-comparison-websites-portals/
http://www.relakhs.com/factors-tips-best-health-insurance-plan-india/
3 - Retirement goal , kindly go through the below article and you may kindly revert to me with your queries.
http://www.relakhs.com/retirement-planning-calculator-3-easy-steps/
4 - Kid's education goal planning;
http://www.relakhs.com/calculate-kids-education-goal-amount/
http://www.relakhs.com/personal-financial-planning-articles-list/
5 - Have you taken home loan insurance to cover your outstanding loan amount?
Hi,
(In reply to your private question..)
As per a thumb rule, you can buy a term plan which is atleast 10 times of your income. Also, add your today's value goal amounts (like kid's education or retirement corpus amount) to this value and you can take life cover for the total value.
I am planning to publish an article on 'how much minimum life cover one should have..' very soon.
Hi,
In response to your Pvt question;
Buying a WHOLE LIFE insurance plan for Rs 3 cr can be a very costly affair. Ideally, a person needs life cover till the working life period ends and/or till he/she has financial obligations. After that life cover is not required.
You can check the premium rates of term plan or whole life cover by visiting any life insurance company's website.
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