Insurance & Investment planning for my NewBorn

POSTED BY Pallavi S ON December 2, 2010 4:22 pm COMMENTS (4)

Hi Experts,

I’m a new mommy and I intend to start planning for the insurance & investment avenues for my baby.
I myself am exposed to all the Insurance & Investment options — direct equity, ULIPS, MFs, Life Insurance, Medical Insurance, Term Insurance, PPFs, NSC\’s, RD\’s etc..
Before I zero-down on anything….I wish to ask for advise from you EXPERTS !!!
Kindly guide me on any planning that is essential and the different options I have in them.

-Pallavi S.

4 replies on this article “Insurance & Investment planning for my NewBorn”

  1. Anil says:

    Pallavi,

    Ramesh, Anitha and Manish have covered pretty well. I would strongly recommend you to visit following site. Normally I wouldn’t direct you to different link without explanations but I’m afraid my summary might not do justice to the excellent content in this site. It has a generic investment strategy on what a parent should do progressively, from the day child is born till about 22 years.

    http://money.outlookindia.com/article.aspx?91431
    http://money.outlookindia.com/miscellaneous/articles/Play%20The%20Game.pdf

  2. Pallavi

    You have already got great ideas from Anitha and Ramesh. Here is my inputs .

    1 month of great planning with result in flawless execution of all your child goals very smoothly and with great chance of success, As a mother , you have 2 main goals .

    1. Protection of Child , incase something happens to you and your husabnd : This is pure protection goal , so take a term plan on your husband and your name in the way , calculate your Insurance cover using this calculator https://www.jagoinvestor.com/calculators/html/Insurance-Calculator.html

    2. The next goal is make sure you save enough for his education from Nursery to College , this would take some effort from your side to arrive at the whole figure and to plan out the cashflow’s , but you can do something using this calculator : https://www.jagoinvestor.com/calculators/html/Goal-Planner.html

    This article might be helpful : https://www.jagoinvestor.com/2010/01/5-easy-steps-to-do-your-childs-education-planning.html

    Manish

  3. anithaveeravendhan says:

    Congatulations Pallavi.
    For a new mom to think of investment this early is a very good thing.
    Buy term plan for your husband.
    Take health insurance. Read the document thoroughly.
    Don’t buy child related insurance plan.
    I have a 4 year old son. When we wanted to start a term plan, the L.I.C agent tried his maximum best to sell “jeevan tarang” to us. He talked of not only our son but also the children of our son.Pure emotional thing but please be aware that the premium is quite high and such investments fall flat in terms of return.
    Read and learn about MF and SIP.
    Learn about expense ratio, sharpe ratio, R-squared,alpha, beta etc…
    Do thorough research.
    Choose the funds with moderate risk and gives good returns over a period of time and according to your goal like,
    -LKG Donation (really it is quite high and these days we have to plan for it)
    -UG(use the monthly investment calculator in jagoinvestor)
    -PG
    -Marriage
    -House for the child etc…
    Start a PPF in his name.
    Most of all before investing in a particular item, think thrice and decide. Regretting after investing is quite common these days. So take your time to choose your own portfolio.
    Review it atleast once a year.
    Good luck.
    -Anitha

  4. Ramesh Mangal says:

    First of all, congratulations to you.
    At this juncture, my advise will be to review the amount and beneficiary of the life and health insurance of you/your spouse. If you do not have these, get them first.
    Next will be a “will” (as detailed in the main site).
    Without having any knowledge about the other assets/liabilities, investments and other such details, right advise for you is not possible. An example of a purely investment related plan is to invest money in a single or two multicap funds either as SIP or lumpsum addons. (This may or may not be suitable for you).
    Do not fall for ANY child plan or related products, which lure you emotionally by using child!

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