POSTED BY September 20, 2012 2:17 pm COMMENTS (9)

ONHi,

I am 36 year old married man. I have a 6 month old daughter. My annual package is 9 lakh. I have taken home loan with 25k per month installment. Below is my portfolio. I want your advise on them for any modification/deletion/addition. My long term goal is to have money for my daughter education, marriage & money for retirement

1) LIC – Jeevan Anand: 5 lakh assured, 36k per month premium for 16 years. I have already paid for 5 years. Shall I continue it or surrender it?

2) LIC – Term plan: 25 lakh sum assured, 14k per month premium.

3) ICICI Life term: 5 lakh sum assured, 20k per month premium

4) PPF: 25K per month

5) SIP of 2k per month

Thanks,

Sanjiv

Thanks a lot for the clarification Ashal.

One last question, what do you say on ICICI Life term policy?

Thanks,

Sanjiv

Dear Sanjeev, instead of having so many small term plans, it ‘s advisable to have a single large term plan of 15-18 times of your yly income.

Thanks

Ashal

Thanks for the suggestion Ashal. Insurance amount is fine as I was also thinking on that.

However, I am still in confuison on Jeevan Anand as I want to build atleast 12-15 lakh in next 10 years. So can you please suggest alternative for Jeevan Anand, wherein I should invest and get desired return?

Also, what is your take on ICICI Life term policy, which I am planning to stop?

Thanks,

Sanjiv

Dear Sanjeev, you mean to say, you can manage 10-12L Rs. in remaining 10 years from this Jeevan Anand. How?

Please share the calculations of the same if any.

Thanks

Ashal

Hi Ashal,

Sorry If I am not clear, I just meant to accumulate atleast 10-12 lakh. That’s why I am not sure, where to invest to get more result. I also want to recover around 1.5 lakh which I would lose if I stop Jeevan anand now as I have already invested for 6 years. Appreciate if you could guide me here. My goal is to get more than Jeevan Anand’s 16 years return in next 10 years. I guess, now I am clear here….

Thanks,

Sanjiv

Sanjiv, If I assume following things –

Now onwards ROI on your investment ‘ll be 10% yly.

Surrender value of Jeevan anand which ‘ll again be reinvested @ same 10% rate ‘ll be 75000

Remaining period for investment = 120 months

The target mly contribution for you is 5000 Rs. only or 60K yly.

To get this growth, please invest your money in Eq. MFs like Quantum Long Term Eq. fund or Franklin India Bluechip or HDFC Top 200.

Thanks

Ashal

Dear Sanjiv, Please confirm the figures given by you as all are in mly mode?

Thanks

Ashal

Hi Ashal,

Sorry some typo mistake was earlier. Please find them below with corrected fig.

1) LIC – Jeevan Anand: 5 lakh sum assured, 36000 per Year premium for 16 years. I have already paid for 5 years. While taking policy, agent told me that I will be getting atleast

12 lakh on completion of 16 year. Though not sure, how. Shall I continue it or surrender it?

2) LIC – Term plan: 25 lakh sum assured, 14000 per year premium. I have paid premium for 3 years.

3) ICICI Life term: 5 lakh sum assured, 20000 per year premium. I took this policy in 2005 and so far total sum, I can see with this is 1,50,000. I am thinking of closing this from next year. I am planning to invest 10,000/- in some term plan and remaining 10,000 in some mutual fund (either through SIP or one time invstment). Need your advice here?

4) PPF: 25000 per year

5) SIP of 2000 per month, 1000 each in SBI Magnum and Fidility Tax fund.

Appreciate if you could suggest and give some valuable advice on my Family planning…..

Thanks,

Sanjiv

Dear Sanjiv, 25L mly EMi translates into some 25L Rs. Home Loan amount roughly. So it’s your first financial liability. Now as your yly package is 9L Rs. In my opinion your life cover should be at least 15*9L+25L = 1.6C Rs. Yes you read it right. 1.6C Rs.

Please stop that Jeevan anand which is not going to bring any ‘Anand’ to your family if something happens to you.

Your views please on the above thing.

Thanks

Ashal