All You wanted to know about Financial Planning

On this website you can learn about saving money on regular expenses, financial planning and its steps like building emergency fund, insurance (life and health), child education and marriage planning, retirement planning, estate planning and tax planning. I also write about reviews of banking, insurance and mutual products and services.

8 ways to maximise discounts and cashbacks to save 20 to 80% on your regular expenses
In this article, I will share my experience of shopping on websites like Amazon India and others and how I have saved money on regular expenses by shifting from offline to online. In short, through this article, I will show you how you can:
1) Save 30% to 50% on groceries, daily use household products, personal use products
2) Save 40% to 60% on prescription medicines and OTC products (if you buy any medicines for self or anyone in the family)
3) Save 20% to 60% on dining out and / or ordering food at home from restaurants
4) Save 20% to 50% on booking movie tickets, travel (bus and airline) tickets
5) Get cashbacks on prepaid mobile and DTH recharge, postpaid bill payments like mobile, electricity, broadband, landline, gas etc.
6) Save up to 75% on purchase of garments and personal accessories
7) Save on 20% to 80% on other services like spa and salon, Ayurvedic massages, hotel accommodations etc.
8) Save on any other expenses that you may incurring regularly or on an adhoc basis
If you want to save on all the above expenses then click here to read more.

i2i P2P online lending platform
In this article we explore i2i which is a P2P online lending platform. Just like banks and NBFCs, you too can give loans to individual borrowers and earn interest up to 30%. In this article, we explain step-by-step the process of investing in loans. You will know how to register as an investor, select borrowers whom you want to lend, and sit back and see EMIs getting deposited in your bank account, month after month. Earn cashback whenever your spend money
Would you like to earn additional cashback on your online transactions? The additional cashback is over and above the discount / cashback / rewards offered to you by the merchant website / bank / credit card / wallet company etc. If your answer is yes, then Cashkaro is the place to be. Cashkaro can help you earn additional cashback for your online transactions related to goods and services related to the following categories:

  1. Groceries, daily use products (FMCG), fashion and other marketplace products: Flipkart, Amazon, Bigbasket, Shopclues, Myntra, Jabong, Ajio, Limeroad etc.
  2. Movies, food, flowers, gifts and entertainment: Bookmyshow, Nearbuy, Swiggy, KFC, Fernsnpetals, Dominos etc.
  3. Ticket booking and hotel booking: MakeMyTrip, Cleartrip, Oyorooms, Fabhotels etc.
  4. Medicines, health and wellness: Netmeds, Medlife, 1mg, IHO etc.
  5. Beauty and personal care: Nykaa, TheBodyShop etc.
  6. Annual digital magazine subscription: Magzter
  7. Miscellaneous categories: Pepperfry, Firstcry etc.

6 term insurance plans: Comparison of claim settlement ratio, premiums and features
In this article, we compare the claim settlement ratios of insurance companies for the years 2015-16, 2014-15, 2013-14. We also compare the premiums and features of term plans of 6 life insurance companies. These include: LIC e-Term, Max Life Online Term Plan Plus, Kotak Life Preferred e-Term Plan, Edelweiss Tokio Life TotalSecure+, ICICI Prudential iProtect Smart and HDFC Life Click2Protect 3D Plus

Comprehensive Financial Planning
This article on the comprehensive process. It explains the building blocks of a proper systematic financial plan that you should have in place to meet your financial goals in life and also to be prepared for any emergencies/contingencies in life. The steps are building an emergency fund, life insurance for the bread earner, medical insurance for the entire family, children’s education planning and marriage planning and retirement planning. This article explains all these step-by-step. The entire process also takes care of tax planning.

Sample Financial Plan
This article is a sample financial plan made for a client. The plan covers various aspects of planning like emergency fund, life insurance for the family bread earner, health insurance for the entire family, children’s education planning, children’s marriage planning, retirement planning, home planning, tax planning. In short it covers comprehensive financial planning.

Goal Based Planning (I) – Child Higher Education Planning
This article explains step-by-step how to go about building a fund for your child’s higher education. The article includes the following steps: Calculating current cost of the course and available time horizon, Calculating the future cost of the course, Making an investment plan, Implementing the plan, Reviewing the plan.

Goal Based Planning (II) – Child Marriage Planning
This article explains step-by-step how to go about building a marriage fund for your child’s marriage. The article includes the following steps: Calculating present cost of the marriage and the years remaining for marriage, Calculating the future cost of the marriage taking into account inflation, Making a roadmap for achieving the goal, Implementing the plan, Reviewing the plan.

Goal Based Planning (III) – Accumulating Gold for Daughter’s Marriage
This article explains step-by-step how to go about accumulating gold for your daughter’s wedding. The article includes the following steps: Decide how much gold you require? Decide when do you need the gold? Make a plan on how much gold needs to be bought every month, implementation of the plan.

Goal Based Planning (IV) – Building a Retirement Fund
This article explains step-by-step how to go about building a retirement fund for your golden years. The article includes the following steps: Calculate expenses at the beginning of retirement, Growth in expenses during retirement years, Calculating the retirement corpus, Making a roadmap for building the retirement fund, Implementing the plan, Reviewing the plan.

Goal Based Financial Planning (V) – How much insurance should you take? Human Life Value
This article throws some light on how much life insurance a person should take. It explains the various ways of arriving at the economic value of a person throughout his working career and accordingly how much life insurance he/she should buy.

Tax Planning: Demystifying Section 80C of the Income Tax Act
This article throws some light on the various financial products included in Section 80C of the Income Tax Act which can be used by individuals for investments and thereby income tax saving. The article also explains the characteristics of these products and what an individual expects by investing in these financial products.

Home Loan Repayment
This article throws some light on how by making regular pre-payments you can finish your home loan before the normal tenure. This results in saving in interest and at the same time the loan gets over before schedule resulting in lower number of EMI’s. The article explains how by increasing your EMI by 5% or 10% annually how much you can save in interest cost and reduced number of EMI’s.

Kaun Banega Crorepati: How to build your Rs. 1 Crore
The article explains how by making small monthly investments in a disciplined manner a person can become crorepati by retirement. If a 30 year old person invests for the next 30 years till his/her retirement, an investment of Rs 1797 per month is all it will take to reach the magic figure of 1 crore, if the investment earns an annual return of 15%. So are you also excited and interested in becoming a crorepati???

Gold ETF’s
This article throws some light on what Gold ETFs are. It also explains the difference between investing in gold the traditional way (buying physical gold) and investing in gold through ETFs (electronic/demat) gold. The article also explains how Gold ETFs are an excellent vehicle to accumulate gold for long term goals like accumulating gold for children’s marriage.

Investing in Gold
We Indians are very much obsessed with buying gold. India is one of the largest consumers of gold in the world. This article throws some light on the various ways of buying gold. It explains the traditional ways like jewellery, gold coins and biscuits. It also explores the new emerging ways of buying gold like gold futures and gold ETFs.

87 thoughts on “All You wanted to know about Financial Planning

  1. You may want to check the MetLife Online Product. It is one of the best term product available in market which is, in true sense, “an Online” product. All other players will have only buying option available, but in MetLife’s case, Customer has the comfort of getting everything using clicks of mouse.

    1. Hi Jitendra,
      I checked the details of MetProtect from Metlife Insurance. And yes indeed it is a good plan on the premium front and on the features front also compared to its other peers in the market.
      I have covered the analysis of MetProtect and other similar plans in the same category in my article “Comparison of Term Plans” about which you read at the below link

      Best Regards
      Gopal Gidwani

  2. Hey Gopal,

    I admire your efforts and interest in spreading the awareness about the financial tools available. Can you put your knowledge to its best use and device a cycle of financial investment that will depend on each other and have various permutation and combination so that the investor need not worry about the investments every year once he had this cycle in place which will work on its own and continue in a recursive fashion without further external investments and still generate money on its own.

    Although this is very hypothetical and its hell of a task but yes its possible. Example a person who has 50K to invest per year can purchase 2 lic payback policies each year with a difference of 6 months so that the effective premium that one has to pay by the end of the every policy payback maturity will bring him close to a negligible amount and yet generate a handsome amount of money.

    Once you device something like that, please do share with me.


  3. Hi
    I want to invest in silver and gold but not in physical form. I have Demate account .
    What is the best way to do so (E-Gold or ETF or Any other way). What are the charges for that.

    1. Hi Monica,
      Thanks for your query. You can invest in ETFs or E-series products. While through your demat account you can invest in Gold ETFs there are no silver ETFs as yet in India. But through the National Spot Exchange you can invest in a range of metals in demat form like gold, silver, copper and zinc for now. The National Spot Exchange plans to introduce e-series trading in 11 metals going forward over a period of time. So you can open an demat account with one of the Depository Participants of the National Spot Exchange. Also regarding Gold ETFs and their charges you can read in detail about it at

  4. Dear Mr. Gidwani,
    Referring to Health Insurance, The pre-existing illness is covered in some plans whereas some plan will not consider it.
    But in case a disease got diagnosed later after taking the insurance, will that be covered? and if covered, isn’t there a chance of claim being rejected after the death of individual of that disease…

    1. Hello Jitendra,
      You are right in saying that specified pre-existing illnesses are covered in lot of health insurance plans.

      But there is a waiting period of 2 years or 3 years or 4 years (or whatever specified) of policy renewal after which these pre-existing illnesses will be covered. The details of which pre-existing illness will be covered after how many years is mentioned in the product brochure and also in the policy document.

      Regarding your query on if a disease is diagnosed later after taking the health insurance policy, well there are 2 aspects to it:
      1) The person was already suffering from the disease and he knew about it and purposely did not disclose it to the insurance company at the time of taking the policy. Well in such a case it will definitely not be covered and the policy will be declared null and void by the insurance company
      2) The person develops the disease after taking the policy and it is later diagnosed, then it will be definitely covered by the insurance company. But another aspect to this is, the disease should not be a permanently excluded disease. For example AIDS, irrespective of when it is diagnosed, it will not be covered as it it permanently excluded.

      Regarding the last part of your query on claim rejection by the insurance company on the death of the person due to that disease, well I thought we were talking about health insurance and not life insurance, and hence there will be no death claim at all in health insurance. The only claim that can be made is the treatment cost claim, which will be covered by the health insurance company as the disease was developed and diagnosed after the policy was taken (provided it is not permanently excluded).

      I hope that answers your query. If not, then please write back

      1. Hi Gopal,
        Just a query here:
        The two aspects of disease being diagnosed after taking policy mentioned by you is fine, how about if a person contracts a disease (say Diabetes / C.A.D. etc.) and is unaware of it being in initial stage. He takes the policy and naturally, the disease was not declared in the application.

        Later, if such disease is diagnosed positive within the lock-in period, will it be considered as pre-existing disease?


        1. In case a person is suffering from a disease that is in the initial stage and he is not aware of, chances are such disease will get detected in the medical test. In that case it will considered as a pre-existing disease and will not be paid for in the waiting period.
          If the disease is not detected in the medical test also (which normally will not happen) or if there is no medical test conducted by the insurance company, then in this case the insured person cannot be blamed as he is unaware of what is happening in his body. In such cases the disease will not be considered as pre-existing and the insurance company will have to honour the claim.
          Anything that is intentionally not disclosed to get insurance on better terms is treated as fraudulent activity and in such cases the insurance company can declare the policy as null and void since the beginning and forfeit all the premiums and close the policy.

  5. Hi Gopal,

    How are you? Gopal my banker (KVB) told me to take the Birla sun life Platinum Advantage Plan. it has a feature of guarantee of highest daily NAV over 7 years and double your money early if you compared it with FD’s. could you please suggent me whether i should go for this or not?

    Waiting for you reply

    Thanks in advance

  6. Hi Gopal,
    thank you for nice article , its very informative. Nice to see the article on term insurance.
    I have a question Is there a option to increase the sum assured amount if the term insurance policy is already taken by the company?
    I have a term insurance policy from Aviva and i want to increase my risk coverage amount. Is there a any option to do that?

    1. You can increase the cover mid-way only if there is a provision in the policy terms and conditions to increase the cover. Else you will have to buy a new policy for additional cover. There are some policies offered by some insurance companies that allow increase in cover during specified events like marriage, child birth, taking a home loan or on policy 5th or 10th or 15th anniversary. There are also policies where the cover increases by a fixed percentage say for example 5% every year. If your policy has any of these provisions then you will be able to increase the cover, else it will not be possible in the same policy

  7. Hi,
    I want to purchase term of India First Life.Is it safe company as claim settlement ratio is not good.
    Also there is not category for smoker and non-smoker as there is big difference in the premium amount in other companies product.
    How they calculate and differentiate??

    1. The claim settlement ratio for IndiaFirst is low because it is a new company. For most companies in the initial years the claim settlement ratio is low.

      I guess they differentiate between smoker and non-smoker at the time of filling the detailed proposal form. So after medical underwriting (medical check-up) they may increase the final premium. I am not sure of how they do it.

  8. i have nett income is 5 lac per annum. how much investment shd i make to save tax ? upto 1 lac or more than tht?

    1. Hello KB,
      How much investment you should make depends on the tax slab that you fall in after taking into account the various allowances and deductions available as per the IT Act. Under Section 80C you can avail deduction of upto Rs 1,00,000 from taxable income. Under Section 80D you can avail deduction of upto Rs 15,000 for self, spouse and children under medical insurance. For your parents additional deduction can be availed for health insurance. It is Rs 15,000 if they are below 65 years and Rs 20,000 if they are above 65 years.

  9. I want to invest in gold or silver but I dont have attrendom huge amt to invest so pls guide me for that.what is e-gold and e-silver.if u knw the details of it then pls let me knw.I am waiting for ur reply soon.

    1. Hi Gautam,
      You can invest in Gold through Gold ETFs. You will need a demat account for this as Gold ETFs can be bought through the National Stock Exchange. You can buy minimum 1 gram at a time which will cost you in the range of Rs 2500-Rs 3000 depending on the international price of gold at that time. You can read more about gold ETFs at

      As of now there are no silver ETFs in India.

  10. Hi Sir,
    Grate work by u sir! thanks for your valuable info.but sir i am still confuse about to take which term age is 34 & my whole family dependent on annual income is 4lack. i found that term policy is very much important. in your earlier replays u suggest people to take icici & india first (what is bsu banks?) policys. bt then u start to suggest hdfc also. Sir can u tell me which pollicy i shud take ? i am non smoker and if any medical test is their then i am happy to do that. i want to take AD/CI riders also.
    hdfc is in my mind. bt some time u suggest to take 2 policys of diff. compony. so
    1. which policy i should take?
    (keeping in the mind 3 things- (a) claim settlement ratio (b) low premium (c) companies good reputation.)
    2. How much sum assured i should take? 50 lacks or more than that?
    your suggestions are very much important for people like us those who are weak in this type of things.
    I am waiting for ur reply Sir.

    1. Hello Mr. Ganesh,
      Thanks for your comment. I see that you have done very good analysis of the replies that I posted for readers from time to time. Now let me answer your queries one by one.
      1) A PSU bank means a Public Sector Undertaking (PSU). In these companies the Government hold more than 51% shares. People feel safe to buy insurance from Government owned companies. They feel Government owned companies are more secure.
      2) At some places I have suggested to go for 2 policies. The reason for that is, if at the time of claim one company pays the claim and the other company does not pay the claim for some reason. You can ask the second company to review their decision and pay the claim on the basis on which the first company paid the claim. You can also follow this approach for breaking your requirement into 2 term insurance policies.
      3) I have recently started suggest ‘Click2Protect’ Policy from HDFC Life because this product has been introduced by HDFC Life recently. This product was not there earlier. The reason for suggest HDFC is, their claim settlement ratio is second best in the industry at 95% after LIC (97%). The premiums of ‘Click2Protect’ are competitive in comparison to other online term plans in the market. The customer service of HDFC is good and the company reputation is also good. All these points make ‘Click2Protect’ Policy from HDFC Life a good choice to go for.

      Now specifically coming to your insurance requirement. The amount of cover you should go for depends on your future earning potential and your financial liabilities (home loan and other loans) and your financial responsibilities (amount you need for children’s education and marriage). If you are not sure of the exact amount, Rs 1 crore amount of insurance can be good to start with.

      Coming to the policies which you should go for. I suggest you split your insurance requirement between ‘Click2Protect’ Policy from HDFC Life and iTerm from Aegon Religare. You can go for 50 lakhs cover from ‘Click2Protect’ Policy from HDFC Life. For the remaining 50 Lakhs you can consider iTerm from Aegon Religare. The reason why I am suggesting you to go for Rs 50 lakhs for iTerm from Aegon Religare is because you want AD/CI riders also and the iTerm plan takes care of these requirements. The policy has ADB rider. It also has inbuilt Terminal Illness rider. Under this rider 25% of the base sum insured will be paid be paid on diagnosis of any terminal illness and the base sum assured amount will be reduced by that amount. The policy also has Waiver of Premium (WoP) on critical illness. The critical illnesses covered under this rider include Cancer/Coronary Artery Bypass Surgery/ Heart attack/ Stroke.

      I hope I have answered your query satisfactorily. If not, please write back.

      1. Thanks Sir! i really appreciate your work. sir from last 2 months i am searching for right policy. Nobody gave me proper information.their are web sights and people who talks about only certain policies .4 days before i come to know about this site and i read almost all of your are doing a grate job!
        keep doing it.may God bless you.

        1. Hello Mr. Ganesh,
          Thanks for your compliment. I am happy to know that my blog was useful to you. Please so share the blog with your family and friends so that they can also benefit from the information ………. 🙂

          1. Hi Sir,
            According to your suggestion I took ‘Click2Protect’ Policy from HDFC Life (50 lac) and iTerm from Aegon Religare (50 lac) .
            iTerm is still in process and they told me now that I can go for only 30 Lac.
            becouse I have 50 lac Policy from HDFC (Click2Protect) & LIC (Jeevan aanand + Jeevan Mitra +Mony Back = total Sum Assured 5Lac) My annual Income around 4 lac.(I mention this info in Aegon Religare policy Application form).So Aegon Religare people told me you can go for only 30 lacs according to IRDA norms. Is that correct Sir?thay can reduce sum assured amount ?
            Beside this Sir I want your help in further Investments.
            My present Investments :
            Age : 35 yrs
            Annual Income: 4lac
            1. LIC
            Jeevan aanand + Jeevan Mitra +Mony Back
            = total Sum Assured 5Lac
            = total annual premium Rs. 17,000/-
            2. HDFC ‘Click2Protect’ Rs. 8,791/-
            3. Aegon Religare’iTerm with riders Rs.7,400/-(Still In Proccess)
            4.Oriental medi claim Insurance ‘Happy Family’ Floater Plan
            = Sum Assured 5Lac
            = total annual premium Rs. 14,500/-
            (Sir I choose this policy 3 years back because they Included my parents with my wife & son)
            Sir,this is my investments till now.It is proper or do you want to me to make some changes in it?
            in future I want to invest in property. So I will go for home lone.
            pl give me suggestions on following points
            1. Investment for my 3 yr old son for higher education purpose.

   is PPF to invest?

            Waiting for you reply

          2. Hello Mr. Ganesh,
            The insurance company can limit the insurance amount based on your income and premium paying capacity.

            With regards to your query on investment in PPF. I believe PPF is a good investment tool in terms of tax saving, long term tenure and returns.

            For your son’s education I will suggest you to invest in Mutual Funds like ICICI Prudential Focused Bluechip Equity Retail, DSPBR Top 100 Equity Regular, HDFC Top 200, IDFC Premier Equity, DSPBR Equity, HDFC Prudence. These are all good funds and will give you decent returns in the long run.

  11. Hi,
    Please let me know the policy which covers below requirement.

    Recently I took a home loan for 20lacs. Already I have term insurance worth 30lacs.

    I want such a policy which will help me in repaying loan, If I am not in a position to pay the EMI’s due to accident or critical illness.

    Please let me know your valuable suggestions.


    1. Hello Mr. Kanth,

      You get different riders with policies. For example
      1) Accidental Death Benefit Rider: This rider pays an additional amount over an above the basic sum assured amount in case of death of the life assured due to an accident.
      2) Disability Rider: This rider pays specific amount as per the terms of the rider in case the person becomes disabled.
      3) Critical illness rider: This rider pays a lumpsum amount on the detection of the critical illness.

      Protector Plus plan from Birla SunLife comes with a choice of 5 riders: Accidental death and disability rider, critical illness rider, surgical care rider, hospital care rider, waiver of premium rider

      ING Term Life from ING Life Insurance offers these riders: Accidental Death Benefit Rider and Accidental Death, Disability and Dismemberment Benefit

      Smart Shield from SBI Life offers a choice of following riders: Accidental Death Benefit Rider, Accidental Total and Permanent Disability Rider and Accelerated Critical Illness cover option

      You can explore the above mentioned 3 policies and study the features by going to the respective insurance company website and decide which one suits your requirement the best.

      You can read about comparison of claim settlement ratios for 2010-11 and features of term plans at the below link

  12. I intend to buy a “Online Term Insurance” through either HDFC Standard Life or Bharti Axa. I have heard that LIC too is coming with online term insurance. Should I wait for it? When do you think they will come out with it?

    Between HDFC & Bharti Axa which insurance company should I go ahead with. My first concern is Claim Settlement Ratio and then the premium amount.

    My personal preference will be LIC, then HDFC and Bharti Axa. Am I correct?


    Lalit Kewalramani

    1. Hello Mr. Lalit,

      LIC made an announcement that they intend to come out with an online term plan by the end of March. I suggest rather than waiting for LIC you break your term insurance requirement into 2 parts.

      For half the amount go for HDFC Click2Protect. HDFC has the second best claim settlement ratio after LIC. Later when LIC comes out with an online term plan you can buy the remaining half insurance required from LIC.

      For more on Claims Settlement Ratio and Premiums and Features of term insurance plans read the following post

  13. Sir, I can save monthly only Rs. 1500 for my child educational policy. I dont want life insurance policy for my child bec he is already cover through my health policy given by maha gov. So Is their any best policy for my child (age 5 month) which will useful for his educational future. pls inform.

    1. Hello Mr. Rajesh,
      For your child’s education I will suggest you to invest in mutual funds like ICICI Prudential Focused Bluechip Equity Retail, DSPBR Top 100 Equity Regular, HDFC Top 200, IDFC Premier Equity, DSPBR Equity, HDFC Prudence. These are all good funds and will give you decent returns in the long run.

  14. hi sir

    I m from police department. yesterday I paid premium rs.4270 for e protect term insurance of bharti axa.when I ask for if it cover in terrorist attake.but customer car says no and policy bazaar representative say yes. now I m confuse here.whom with should I go? and second thing hdfc click2 protect, icici I care and some other company does not cover police man onduty while we have to serve 24hr when necessary.and may chances of face terrorist attaks then should I cancel the policy of bharti axa if not cover in terroist attak

    1. Hello Mr. Rathod,
      I visited the Bharti AXA website and checked the details of eProtect Policy. The exclusions section mentions exclusion of death due to suicide within 1 year of issue date of policy or 1 year of latest reinstatement of the policy.

      I checked for more details but did not find information on cover for terrorist attacks. It does not mention whether terrorist attacks are covered or excluded. It is silent on this.

      You have rightly mentioned that some companies do not cover people working in police department and armed forces due to threat of death due to terrorist attacks and war. They are provided life insurance cover by the Government.

      I know iTerm from Aegon Religare covers terrorist attacks. But whether the policy is applicable to people working in the police department or not, I am not sure of that. Please check with their customer care.

  15. suggest me some term plan cover me in terrorist attake. with comparison in claim settlement ratio, low premium and high cover. I m 27 year old. serve in police department last 6 year

  16. sir I realty hopeful that u may give me proper solution.
    sir, I have been served as government servant since five year; want term plan and I m 27 yr annual income is I watch on utube”apna money episode of cnbc awaz”.in this epi. expert says “u should take sum assured as 10times of your annual income” here please explain why they suggest like this?? my salary increased every year and I want 50lack sum assured today.Because after 10 year I may be eligible for it but I will be 37old and premium will be high that I have to pay and social responsibility and expenses also increase. may I take or not if no then why? how much should I take if insurance company give 25to30times of annual income!! may be chance to refuse the claim on death because of higher sum assured taken like 25 to 30 times of annual income.

    1. Hello Tanjit,
      As per your requirement you can apply for a cover of Rs 50 lakhs. The insurance company will assess your premium paying capacity based on your income. In case they feel you will not be able to pay the premium then they will come back to you with a reduced cover offer.

      But I don’t think that you will be denied a cover of 50 Lakhs. So go ahead with your application of Rs 50 Lakhs

    1. Hello Tanjit,
      As per your requirement you can apply for a cover of Rs 50 lakhs. The insurance company will assess your premium paying capacity based on your income. In case they feel you will not be able to pay the premium then they will come back to you with a reduced cover offer.

      But I don’t think that you will be denied a cover of 50 Lakhs. So go ahead with your application of Rs 50 Lakhs.

  17. Vijay

    Hi Gopal,

    I would like to clarify on delaring the existing policies when at the time of taking new policiy. My querries are

    1) Is it mandatory to declare all the policies when at the time of taking other policies, like child and ulips.

    2) Only when at the time we are taking term plicies we need to declare about the existing term policies.

    3) What are the imlications when not declaring the policies, we denied in settling the claims.

    1. Hello Vijay,
      1) It is mandatory to declare all existing policies at the time of taking a new policy
      2) We need to declare all existing policies at the time of taking any new policy, and not just at the time of taking a new term policy.
      3) Not declaring about existing policies may lead to rejection of claim

  18. sir,
    my NSC are mature on 8TH JAN 2012 but i am unable to claim till now , i want to know ,how many days taken to widrawing the same after 5 month from maturity period .

    thnks ,


    1. Hello Santosh,
      It should not take 5 months to withdraw your money. This is way too long a time period. I suggest you visit the post office and inquire with them as to why is it taking that long to redeem the money.

  19. I want to know which medi insurance is best for family floater (me+me wife+child+parents) for 5.00 Lacs & I also want to know that I have taken ICICI Health Saver with Medi insurance of 5.00 Lacs floater with me+wife+kid with premium @15000/- p.a. (my age is 35 years) and another of 4.00 lacs with me+wife+kid+mother of Bajaj Tailor made policy with National Insurance. Both policies were taken 3 yrs. back & running. Are these policies ok, if not shall these be dropped and new taken . Also want to know which is best for critical illness.
    Harsh Jain

    1. Hello Harsh,
      Thanks for your above comment. But since I am not an expert in health insurance I will not be in a position to comment. I suggest you get in touch with an health insurance expert like MediManage. They will be the right people to guide you on health insurance.

  20. Dear Sir,

    I want health policy please call me so that i will buy the policy…….


  21. Dear Sir,
    I am vijay my mobile number is 9910247095. please contact me on my number i want the health insurance policy…….

    1. Hello Vijay,
      I am not an agent of any insurance company. I don’t sell insurance products of any company and so I don’t represent any insurance company. I write independent reviews of financial products and in general on financial planning. In case you are interested in buying a specific product of specific company, then I suggest you get in touch with the company directly or the appropriate agent of the company who can help you with your need/s

  22. Shold i disclose my jivan saral policy of lic in my term plan? My annual income is 140000 gvt. Servant…how much sum assured shold i take ..and …plz rply as much soon

    1. Hello Pankaj,
      You should disclose the details of all your existing life insurance policies while applying for a new life insurance policy. This is mandatory and not disclosing the details of existing policy or policies can lead to rejection of claim at the time of claim.

      With regards to your query on how much life insurance cover you should take, refer to the below article

      Basically the life insurance cover should be able to take care of the financial liabilities (loans) and loss of future income for the family in the event of death of the family bread earner. If you find this technical or difficult to understand, keep your life insurance cover at 10 or 15 times your annual salary + total of your loans

      1. Hanks gopal….apne muje ye madad ki par me aap ko kuch nahi de sak
        a….bhagawan hamesha aapki manokamna purn kare…aap khus

  23. hello sir,

    I just nw joined new organisation. i worked for more than 6 yrs in my previous organisation.New organisation is suggesting to withdraw PF amt and open new PF account since transfer of PF may take a year. however is it safe to withdraw PF? secondly if i withdraw PF amt (say 3 lac rs) and deposit to my PPF account at one time will i get better returns? OR better to transfer the PF funds from previous company to present company. Kindly provide better option.


    1. The best thing to do will be to transfer the Employee Provident Fund (EPF) amount from your previous company to the new company. I don’t think it takes that long to transfer as you have mentioned (1 Year). I think the EPF transfer should be done in a couple of months.

      Also if for whatever reason you are not able to transfer the EPF money from the previous company to the new company then as you have mentioned you will not be able to deposit the entire Rs. 3 lacs at one go in your PPF A/c. PPF has a annual deposit limit of Rs. 70,000.

  24. Dear Sir,

    I am having 2 years old daughter. I am thinking to initiate financial planning for her higher studies. At this moment though I am not able to judge her natural abilities, tentatively considering medical career for her. I am assuming around 10 lakhs could be the present value for medical studies. However I am not able to select the right figure for inflation rate for this calculation. Kindly provide your guidance for selecting inflation rate and correctness of aforementioned medical studies cost.

    1. Hello Yuvraj,
      Lot of financial planners assume education inflation of 10% in their calculations.

      With regards to cost of Rs. 10 Lakhs for a medical career, well that depends on which course in medical stream you have selected, from where it will be done, whether it will be done in India or abroad etc. etc. I will suggest you benchmark the cost of the course with the fees of the college from where you wish your daughter to pursue the medical course.

  25. Very good article having very good analysis of the existing Term Plans. It helped me a lot. Thanks for writing this article

    1. Excellent article having excellent analysis of the existing Term Plans. It helped me a lot. Thanks for writing this article

  26. Dear Mr.Gopal,

    I am regular reader of your post.
    I have few queries.
    Recently I changed my job and withdrawal of my PF money is approx 2.8lakh rs.
    I would like to invest around 1.5lakh.
    I already have LIC policy.
    Please guide me SAFE AND STABLE return options.


    1. Hello KB,
      If your investment time horizon is more than 3 years or 5 years and your risk appetite is high then I will suggest you to go for diversified equity mutual funds. Also don’t invest the entire amount at one go. Go for a regular SIP.
      If your risk appetite is low than you may go for fixed income securities like Fixed Deposits or NSC or others

      1. thanks for your prompt response.
        please suggest me some good return SIP. i will invest few in SIP and other in FD for safer side.
        also advice me which bank FD’s interest rates are high and safe.

        Thanking you in advance.

        1. Hello KB,
          You can consider some of the following Mutual Funds for investment:
          1) Large Cap Funds
          a) ICICI Prudential Focused Bluechip Equity Retail
          b) Franklin India Bluechip

          2) Large and Mid Cap Funds
          a) HDFC Top 200
          b) ICICI Prudential Dynamic

          3) Mid and Small Cap Funds
          a) ICICI Prudential Discovery
          b) IDFC Premier Equity

          4) Multi Cap Funds
          a) HDFC Equity
          b) DSPBR Equity

          5) Balanced Funds
          a) HDFC Prudence
          b) Birla Sun Life 95

          In case you plan to spread your investment among 3 schemes, I will suggest you choose 1 Large Cap Fund, 1 Mid and Small Cap Fund and 1 Balanced Fund

          With regards to Fixed Deposits you may choose a bigger bank from private banks (ICICI Bank, HDFC Bank or Axis Bank) or PSU banks (State Bank of India, Punjab National Bank or Bank of Baroda). The difference in the interest rate will not be more than 0.5% among the FD schemes of these banks across same tenures.

  27. U may sound my query weird but let me ask.

    I resigned from one organization in July 2012. I worked thr since may 2006. I joined new organization.
    Now I got sms from EPF office stating “you application is rejected. Rejection letter dispatched”.
    Now I got my PF money+ gratuity etc from my previous organization.
    So the money which EPF organization asking about is pension amount?
    If yes how much will be tht amount as my basic sal was 30k pm when I left the organization.
    Please comment.


  28. hello sir,

    i need ur assistance. i m looking for health insurance plan/mediclaim (15k which is exempted in 80d).Please suggest me few better plans which preferably include pregnancy things as well. looking forward for your response.


  29. Dear Sir,My current age is 30 year.I am married person and i have two kids also.Till now i have not taken any policy on my name or even on my family also.Now i feel first i have to take insurance plan first to safe my family for that just newly i have taken iTerm plan from AgoneReligare for period of 45 years with premimum of 7000 per year and coverage of 50L and incase of AD it`s 80L.whether my decison is correct for plan selection and goneReligare selection.Please let me know on my email address amsidhlokhande@gmaildotcom

  30. Hello sir,
    i want to know about how to trade in egold.
    please explain it to me by answering through mail.
    also tell how its profit or loss affect by tax amount.

  31. Hi,

    I want to one health insuance policy for my family but I am little bit confuse, I have 4 option like maxbupa, religare,apollo and national insurance.

    Can you help me out for the same. in which policy can I go?

    Thanks regards.

  32. Hi Gopal,
    Did you have chance to look at the PNBMetlife’s Mera Term Plan, is it good if one is looking for term plan with few rides like ADB.

  33. Wonderful article with more number interlinking articles. We can get clear idea about Financial Planning form this post. Thank you

  34. Hello!

    Could you pl resolve my basic queries around health insurance?

    Background info:
    My age: 40yrs
    Spouse: 33yrs
    Kids: Two
    Annual Income: 30L +

    1. Shall I go for individual policy for myself & floater policy for spouse & kids?
    2. What should be min coverage considering healthcare costs in future?
    3. Would it be advantageous to have base policy + top up? What are pros and cons of top-up policy?

    Next, could you pl recommend me insurance policy (policies) to suit my needs with following
    1. Life long renewal
    2. Reasonable premiums during renewals at higher age
    3. No co-pay
    4. No sub-limits, no cap on Room rent
    5. Good service, higher claim ratio

  35. Very nicely written article, I love your blog. You always right very useful and informative articles, keep writing articles.

  36. Hi, very informative article.
    I am 28 years old and I am searching for good investment options. I just came to know about peer to peer lending as an emerging platform in India and wanted your views on that.

    1. Hello Rajat,
      In P2P Lending the risk of default has to be borne by the lender. So if the borrower defaults, you as a lender will have to suffer that loss. The P2P platform will not bear that risk. So if you are will to bear that risk, then you may consider lending through a P2P platform

  37. Hi Mr. Gopal Sir,
    I was taken Oriental medical Insurance ‘Happy Family’ Floater Plan in 2011 for my family which includes – me(39 years), wife (33 years), father (65 +), Mother (60+) and son (7 years).
    I was paying annual premium around Rs. 22,500/- till this financial year (2016-17) for sum assured 6 lac. Sir, now Oriental company suddenly increased annual premium till 41,000/-per year which is very shocking for me and difficult to manage financial planning. Sir, please guide me that what to do in this situation. Sir, I want to ask you that, 41,000/- is suitable amount for my floater policy which includes my parents?

  38. I have some extra money by which i want to start money lending business but i don’t know where should I start this.
    Things to be asked :
    1. Legal process
    2. Getting started
    3.what are the risks in this business.

    Hoping that you will answer these questions in the above mentioned email.

    Your well wisher,
    Yaman Moury

    1. Hello Yaman,
      You can lend money to individual borrowers just like what banks and NBFCs do. You can do this through online peer-to-peer (P2P) lending websites like i2i funding. To answer your queries:
      1) Lending money through P2P lending websites is legal. These lending platforms have been categorised by the Reserve Bank of India (RBI) as NBFC-P2P. These lending platforms are regulated by RBI.
      2) You can get started through i2i funding. I have been investing through them since more than a year and so far my experience with them is good. You can read about i2i funding in my detailed blog about them at the following link:
      3) Any lending business has a risk of loan default by a borrower. i2i funding addresses this risk by doing the credit risk assessment of loan proposals received using its i2i proprietary Credit Score Model. The borrower is assessed on 40+ parameters such as credit history, education, job stability, income details and other behavioural patterns. This ensures only high quality loan borrowers are brought forward to investors like you for consideration for funding.
      They also have an optional principal protection program. An investor has the option to choose up to 100% loan principal protection. In the case a borrower defaults, the proportionate outstanding principal will be repaid by i2ifunding depending on the extent of principal protection (0% to 100%) chosen by an investor. This is an additional layer of safety net for the investors.
      I hope I have answered your questions satisfactorily. You can read about i2i funding at the following link:

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