Need advise on Financial Planning, Insurance, PPF

Q & A Forum › Category: Financial Planning › Need advise on Financial Planning, Insurance, PPF

igovardhanboga asked 9 years ago

Hi Sreekanth, I am 30 yrs old. So far No Investment, insurance, etc and want to start now. I can invest up to 10-15 k per month at this stage [Can go in Future] and found below possible good options as per my knowledge. Product Monthly Yearly Maturity Period Int Rate Life Insurance 1,000 12,000 Need to Check 30 Yrs Need to Check Term Insurance 3,000 36,000 NIL 30 Yrs NIL Post Office PPF 5,000 60,000 ~ 30,37,500 20 Yrs 8.0% p.a. Post Office RD 1,000 12,000 Need to Check Check 7.2% p.a. Basically, I want to make sure to have decent returns [at the the age of 55-60 years] and uncertainty life coverage for me and my wife. I did some research and from my point of view planning to invest in \"PPF + Term Plan\" at this stage and if possible I am ready to go with RD / Life Insurance as well. Please advise is it good option to opt for me OR in case if you have any better alternate options / changes in investment amount / etc. then kindly suggest me. Also please let me know which organistion is good option in Term Plan - ICICI iProtect OR LIC e-Term?. Thanks in Advance, Govardhan

igovardhanboga replied 9 years ago

Hi Sreekanth, Also Please advise which Bank has good FD options.

igovardhanboga replied 9 years ago

Sorry for the trouble in my above question, I tried to post a table which didnt post correctly, please see below.

Product Monthly Yearly Maturity Term Int Rate
Life Insurance 1,000 12,000 Dont know 30 Yrs Dont know
Term Insurance 3,000 36,000 NIL 30 Yrs NIL
Post Office PPF 5,000 60,000 ~ 30,37,500 20 Yrs 8.0% p.a.
Post Office RD 1,000 12,000 Dont know 7.2% p.a.

2 Answers

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Sreekanth Staff answered 9 years ago

Dear Govardhan, 1 - As you do not have life cover, suggest you to buy a Term insurance plan at the earliest. You may buy a basic cover plan and then can consider to buy a stand alone Personal accident insurance cover as well. Kindly read : https://www.relakhs.com/best-online-term-insurance-plans-india/ https://www.relakhs.com/iprotect-smart-icici-prudential-new-term-insurance-plan-features-benefits-review/ https://www.relakhs.com/hdfc-life-click-2-protect-3d-plus-review/ 2 - Do you have health insurance cover? 3 - You may consider equity oriented plans for your long term goals like Retirement planning. Kindly read : https://www.relakhs.com/financial-planning-pyramid-wealth-protection-accumulation-distribution/ https://www.relakhs.com/retirement-planning-calculator-3-easy-steps/ https://www.relakhs.com/list-of-best-investment-options-schemes-in-india/

igovardhanboga replied 9 years ago

Hi Sree,
Thank you very much for your valuable advise and sharing important article readings.

1 – After reading the article it seems ICICI is the best option as LIC gives only Flat Death benefit and doesn’t consider any riders.
In my further analysis —
a. ICICI / Aegon – Covers all Riders i.e. Accidental Death, Accidental Disability, Critical Illness, Waiver of Future Premiums with a annual premium of ~22,000
b. HDFC – Covers all Riders except Accidental Death with a Annual Premium of ~13,500
Considering Cost, If I go with HDFC, how can I get covered myself under Accidental Death? Is there any other policy available for this?

2. No I do not have any health insurance cover at this stage.
Please help and suggest the good options including for my wife (27 yrs, non earning member).

3. I will be start investing in PPF and RD after that will try to go with Equity, Shares, MF as I have a very limited knowledge on this.

Thanks a Ton in Advance!
Looking for your advise.
Govardhan

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Sreekanth Staff answered 9 years ago

Hi, 1 - Personally, I believe that Aegon is more comprehensive (with its riders attached) w.r.t affordable Base cover + Accidental Death/Disability cover. Kindly note that this is not a recommendation but just a suggestion. Else, you may take term plan with just a basic cover and then a separate stand-alone Personal Accident insurance policy. Kindly read : https://www.relakhs.com/aegon-life-iterm-insurance-plan-benefits/ https://www.relakhs.com/best-personal-accident-insurance-policies-in-india-details-comparison/ 2 - Do consider taking a family floater health insurance cover. Kindly read : https://www.relakhs.com/best-family-floater-health-insurance-plans-details-checklist-comparison/ https://www.relakhs.com/best-health-insurance-comparison-websites-portals/ https://www.relakhs.com/factors-tips-best-health-insurance-plan-india/ 3 - PPF is a decent long term savings option.