Please advise on ELSS and long term savings

Dear Nagarjuna,

• Kindly share more details on LIC policies. We can surely cut down the extent of Premiums paid (if you have unwanted life insurance policies) and can divert this to better investment alternatives as per your requirements. Share Plan name, Sum assured, tenure and commencement date of policies.
• Do you have Personal Accident cover & health insurance plan (other than company provided, if any) for self & dependents?
• May I know the reason for not saving anything till date (you may ignore this question if you do not want to share the info here).
• Suggest you to postpone buying a home for Self-occupation. Your priority is to save adequately for your retirement goal & Kid's Education goal.

Kindly go through below articles (do not miss out on any article) and you may revert to me;

• If Life is unpredictable, insurance can't be optional
• Blocks of Financial Planning pyramid
• The 6 most common Personal Finance Mistakes.
• Kid's Education goal planning calculator
• Retirement Planning goal calculator.
• List of articles on the key aspects of Personal Financial Planning.

Hello Sreekanth, Thanks for the quick reply. I don't have any personal health policies. My company is providing Rs. 5lac group policy. Should I take one just in case??? I was out of the country for almost 10years. Whatever the savings i had with, I bought 3 properties in which I sold one of them (for Rs. 30lac) in order to buy a flat in Bangalore .  My budget to buy a house is around Rs.65lac where I can pay Rs.30lac upfront and the balance should come from a home loan. At present, my savings are very less or almost nil. Please suggest me an investment option so that I can discipline myself when it comes to savings / investments. LICs Me      Money back                50,000          Rs. 3354          11/2003     20years Me     Money back                  2,00,000      Rs. 13018         02/2004    20years wife   Jeevan surabhi              2,50,000      Rs. 26,401         08/2008   15 years (paying term 12) Girl    Komal Jeevan                2,75,000      Rs. 19,749        08/2008   26 years (paying term 18) Boy    Educational Annuity      6,22,000       Rs. 39,000        06/2012   18years   Thank you, Kind Regards, Rao

Dear Mr Rao, The other two properties are Vacant plots or do you get any income from these properties? Is the Flat a Self-occupied property? Life Insurance:

• Suggest you to make Money back plans (both) PAID UP ones.
• Is your wife an earning member of your family?
• LIC Komal jeevan can also be made PAID UP.
• LIC Education policy, its better you may surrender the policy.

But before you decide to implement the above suggestions, kindly first buy a Term plan with an adequate basic risk cover. Read: How to get rid off unwanted life insurance policies? Term insurance Vs Traditional plans. Health insurance : Kindly buy a stand-alone health cover. Read:

• Best Family floater health insurance plans.
• Best portals to compare health plans

Suggest you to buy a Personal accident cover too.

Hello Streekanth, Both plots are vacant and they don't generate any income.  The flat which I am going to buy is to live in it.  So far I wasted so much money in renting the flat (19k per month) and now I have decided to buy my own. My wife is not an earning member.  Salary is the only source of income to our family.  I can be paid up all 4 LICs means, Should I pay the installments upfront now....If that is that case, I don't have that kind of money in my hands. (nearly 5.7lac). Can you please suggest me a best term plan + a health plan for us.   Thanks, Rao

Dear, I guess you have not read the suggested articles. Kindly go through them without fail. Especially below articles;

• The 6 most Common Personal Finance Mistakes. Renting is not a bad option. As you do not have sufficient savings, you may live in a rented house and build sufficient corpus for retirement instead.
• How to get rid off unwanted Life Insurance policy? Kindly read this article to understand about PAID-UP concept.

If your wife is not an earning member of the family, you may make her life insurance policy too as a PAID-UP one. Kindly read the suggested articles on Health plans. Also, Best Term insurance plans.

Dear Mr Rao, 1 - Kindly buy a Term insurance plan before making the existing life insurance policies PAID-UP. Buy it from any company of your choice. Kindly provide all the required information in the proposal form honestly and accurately. Read: Best Term insurance plans. 2 - Besides a Term plan, I believe there is no need to buy other kind of Life insurance plans. You may kindly avoid SBI plan. 3- Use the retirement & Kid's education goal calculators available in the shared articles and calculate approx required savings amount. For goals beyond 5 years, you may consider ELSS fund (for tax saving too). Kindly read: List of best investment options.

Thank you very much Mr.Sreekanth for your valuable advise, much appreciated.