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nformation provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. , its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.
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Buy a term Plan

Buying a term plan tops the list of smart money moves. The earlier you buy life insurance, the lower is the premium.

We did some number crunching arid found that if the cover is till the age of 60, the total cost of buying the plan at the age of 25 or 35 or 45 is roughly the same. While you pay the same price, your insurance term will be lesser. More importantly, a person who buys late is taking a big risk until he gets protection. If he develops a medical condition later in life, he may have to shell out a significantly higher premium. If the problem is severe, he may be denied the cover altogether.

Keep a few things in mind when you go shopping for a term plan. First, the insurance cover should be big enough to generate a monthly income for your family. cover major expenses, and settle outstanding loans. _

Secondly, the policy should cover you at least till the age of 60. Don't take a short-term cover of 10-15 years, which ends when you are in your 40s. You need insurance most at this stage of life and a fresh policy will cost you a bomb. Lastly, don't try to lower the premium by misstating facts in the form. If you smoke, drink or suffer from a medical condition, don't hide it. It may bump up the premium by a few hundred rupees, but your nominee's claim won't be rejected because of misstatement of facts.

Health Insurance

Health insurance is also cheap when you are young and costlier when you are old. More importantly, the rule about pre-existing diseases makes a compelling case for buying a cover early. When you are young and in fine fettle, the 3-4 year waiting period is a breeze. Delay buying the policy and you may get afflicted by medical conditions that usually crop up in the late 30s and 40s.

Don't harbour the misconception that your employer's group health plan will be sufficient While these are useful, they do not provide adequate coverage. Besides. if you lose your job or switch to another company, you may be rendered uninsured for a certain period.

A basic indemnity plan, which reimburses hospitalisation expenses, should be your first health insurance policy. Self-employed professionals also need to insure themselves against loss of income due to hospitalisation. They can supplement the base cover with a fixed benefit policy. which pays them a certain amount for the period that they are out of action.

The cover can be enhanced by taking riders or policies to cover critical illnesses and surgical procedures. However, these should be seen as additions to, and not replacements for, the basic indemnity plan.

While Goals ring a bell for Child’s Education, Or your Travel Plans or any Asset you wish to buy, The jump in rates that you see today, to when the time comes could make you see stars in the day!

An international vacation that cost around 1.5 lakh to 2 lakh in 2017, is 3 lakh to 3.5 lakh today. Similarly, A domestic vacation that costed 50,000 in 2017, costs roughly 80,000-90,000 today. So, if two years back you planned to save ‘X’ amount, It is definitely ‘X+X’ or sometimes even more. It is better in such case to invest the money today considering a minimum of 6.5% - 7% in FD would sum up in for the next 3 years.

If you are planning to buy any asset, Say a Car or a House, As we all know that the prices are always increasing. And when planned to when bought, the rates have already bloomed and touched the skies!

Education costs tend to rise twice as fast as wholesale inflation. According to a survey of 2,000 families across 15 cities in India and found that the annual school education cost had risen from Rs 94,000 in 2011 to Rs Approx 2.5 Lakhs in 2019. Higher education costs are increasing even faster. Five years from now, the tuition fee for an engineering course, currently pegged at roughly Rs 15 lakh; would be close to Rs 20 lakh. In 10 years, it's likely to cost around Rs 30 lakh.

The only way to beat this jump is to start saving for your child's education early. A growing number of parents is doing that A Survey found that roughly 53% of parents started saving for their children's education before the child turned 3. Another 9% started even before the kid was born. That's good news, because the earlier you start, the more the time available for your investments to grow.

While saving for your child's future needs, make sure that you have taken adequate life cover. While a term plan is essential, you could also consider child plans from insurance companies. Unlike other insurance policies, a child plan does not end if the parent dies.Premium Waiver benefit is available in some child plan, benefits may vary from plan to plan. Contact your advisory for more details.
Can you trust your adviser? It is very important to have a trustworthy source of objective advice. So, get a professional to make a financial plan for you. Objective financial advice isn't free but works out cheaper than the 'free' advice doled out by any un-professional. If you buy a costly insurance plan that you don't need or an investment that does badly, you will lose much more than the annual fee of a financial adviser.

How can you differentiate between an adviser and a salesman? The former will try to understand your needs and suggest a strategy to achieve the goals after assessing your risk appetite and saving potential. The process may take days, even weeks. A salesman will leapfrog to the last stage and quickly offer you any random plan.

Stay clear of such people who are out to sell you anything that will earn them an attractive commission. Instead, a better option is to go through financial, which can offer unbiased and relevant advice on financial matters since the endeavour is to empower you and let you take your own decisions.

Insurance policies are a difficult thing to understand by layman. And understanding in thoroughly is one such important thing. Experts help with that. They would check the requirement and suggest the perfect plan according to that. They would if there is any special situation one should be aware of. They also include risk management program through which investor can take some of the business risks and through this they can effectively reduce premium. Also, it is one of the primary functions of the insurance agents to help the customers in matter of claims. And while claim settlement, they would help in getting it without any hazards!
Please mark all your queries / responses to
Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. , its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.