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Money Matters

Managing your money can be tricky. Send your queries, and personal finance experts will help you resolve any issue

Home Loan Insurance

Ankur Arora

I had taken a home loan of Rs 35 lakh in February. The EMI is around Rs 26,000. I have a term policy with a coverage of Rs 25 lakh and the premium is around Rs 6,300. Should I increase my life insurance coverage or buy an EMI protection plan?

Naval Goel, CEO & Founder,

You should go for an increase in life insurance coverage rather than EMI protection as term plan is cheaper. Raise the sum assured of the term plan to at least twice the current level. This will give you the required financial cover and help you with EMI protection if needed.

Health Insurance

Garima Mishra

I am a 30-year-old looking to buy a family floater policy for me and my husband. We have no plans to have kids. Should we buy individual health plans or a family floater policy? Which are the most suitable plans in the market?

Amit Chhabra, Health Business Head,

Since it's the two of you, it is advisable to go for a floater policy with adequate sum insured. For the same price, you will get a higher coverage and the risk will be spread across two individuals. Comprehensive cover plans with sum assured as high as Rs 1 crore are available at affordable premiums. Also, please note, it is important to declare your health conditions to the insurance company before buying any cover.

Some Rs 1-crore family floater plans:

1. Aditya Birla Health Insurance: Annual premium = Rs 14,223

2. Max Bupa's Super Saver plan: Annual premium = Rs 14,729

Mutual Fund

Nishant Jain

I am 35. I have two running SIPs of Rs 5,000 each for the last two years for my retirement corpus. I am not sure if these will suffice. How do I know how much to accumulate till I turn 60?

Vidya Bala, Co-founder, Primeinvestor.ins

With your current savings and SIPs, at the end of say 25 years (a few years before retirement) at a return of 9 per cent (assumed), you will have around Rs 1.2 crore. To know whether this is sufficient, you need to first draw an estimate of your current living expenses (outside school fees or EMIs) and make a rough estimate of what is required at your age of retirement with at least a 4-5 per cent inflation. You can use any of the online calculators to estimate how much you will need to save at your current rate of return. You can then try to gradually increase your SIPs.

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Published on: May 27, 2020, 9:43 AM IST
Posted by: Vivek Dubey, May 27, 2020, 9:43 AM IST