Contingency fund

Hi, You may kindly go through below article, can be useful to you ; https://www.relakhs.com/emergency-fund-importance/  

Thanks for the information, Suppose i have made approx estimate of 10 lacs required to build emergency fund.  How to build this corpus, For instance ,     What is the inflation rate     How many years to invest     How to figure out monthly required amount to save this goal like all other financial goals.

Hi, Kindly note that the saving instruments that we opt for Emergency fund can mostly give very nominal to at best 5 to 7% returns. So, whatever returns we get that again can be considered and added to the fund. So, you may just keep on investing in liquid funds/accumulate cash balance etc., till you achieve your desired corpus. For health insurance corpus, the inflation rate can be considered as 10 to 15% year on year. First priority, it to try to get adequately covered by an health insurance plan and then can plan to build a corpus to meet any unforeseen expenses due to hospitalization or for medical treatment.  

Great, I got your point on the first part of my query. Regarding Health insurance corpus, suppose if i am planning for 50% of medical cover ,say for instance 5 lacs. With inflation 10%, and how many years i need to consider for calculating the Monthly required ,because we do not know, when actually we will be needing that health insurance corpus

Hi, That's why this is called as planning for contingency.  Having some emergency fund is better than having nothing. There are no hard and fast rule here.