Is this OK for my and my family’s future?



Am I making a good move towards my future? I have following investments/insurance for my and my family future:

1) PPF a/c started in Jan’10, investing at least 40,000 every year (3500/monthly)

2) One term Insurance for 10 years (covered till 2020) sum assured 5,00,000, Single premium already paid.

3) One Money back policy started in 2006 (covered till 2021) sum assured 1,22,000, paying yearly premium 10,200

4) Another Money back policy started in 2007 (covered till 2022) sum assured 1,00,000, paying yearly premium 10,900

5) Insurance policy for wife started in 2006 (covered till 2026) sum assured 1,00,000, paying yearly premium 10,000

I am 33 year old and having a son aged 2 year. I am trying to save at least 10,000 every month from my monthly earning for paying
above mentioned dues and keep some money for emergency.

I am working in an IT enabled firm where no one can say his job is secure.

So please have a look on my investment and please let me know if I am on right path or not or suggest me if you have some better investment plan.

Looking forward to the genuine answers…

Is this OK for my and my family’s future?
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5 Replies to “Is this OK for my and my family’s future?”


  1. Bravo!!! At this age what you are doing is best one. Keep it up. very good investment for future and definately this will be most useful for your family in coming days.


  2. PPF account 40000 rupees a year – I would say good move, nothing to worry

    term insurance plan for 10 years and single premium paid – i would say not a very good move or stupid investment

    money back policy – ??? why ?? why ?? Do not take money back policies at all

    insurance policy for wife – ok ( still having questions as why wife is an insurable interest for you ??))

    I am also married and 28 yrs, i Pay 12000 rupees for term insurance of 75 lacs for 30 years
    how much are you paying – 10,200 + 10,900 + 10,000 = 31,100 per year for insurance alone …

    think the money you could have saved
    i know you will argue that you have term plan and i have money back policy etc.

    money back polices will give you money back at the end of term i.e at 2021, 2022 and 2026.
    these polices do not give sum assured but the bonuses (depends on policy to policy)
    even if you get money back – whats the value of that money ??
    considering average inflation of 6.5% year on year what will 1 crore be in the year 2026 ???
    hardly peanuts ….

    i would say that you have to for damage control mode now,
    continue with your PPF, either change your money back polices to paid up policies or surrender your policies. go for term plan always.

    excess investment of your self and your wife to be done in SIP mode in diversified equity funds like HDFC TOP 200, hdfc equity , birla sun-life , reliance etc.

    you can go for balance type mutual funds for your child education and marriage like hdfc prudence


  3. Basic mistake – you have treated insurance as an avenue for investment.

    If your wife is not working , no insurance is required for her.

    For life cover , go for PURE TERM COVER . It should cover you till retirement.

    Visit http://www.aegonreligare.com and calculate premium yourself.

    Have a look at their online policy , increasing cover policy and the critical illness riders.

    Surrender your Money back policies and your wife’s policy ( if she is a housewife)

    With the premium saved , put more in PPF and invest lumpsum preferably before 5/4 every financial year. Treat it like a pension fund. Do not close the account ever. Keep extending in 5 year blocks after the initial 15 years. After retirement , you can pay Rs 500 per year to keep it alive and withdraw the interest earned every year as tax free pension.

    You can invest via SIP in HDFC TOP 200 / DSPBR TOP 100 / HDFC PRUDENCE

    Visit http://www.valueresearchonline.com to understand mutual funds.

    Please take a mediclaim policy for you and family from one of the PSUs like The New india Assurance Co ltd.

    Take a policy evn if you are having group cover in your office. Enjoy 80D benefit up to Rs 15000 per year.

    Invest some money in DIRECT EQUITY.


  4. Thank you for having trusted me to guide you on this. You have saved more than Rs. 21,000=00 per annum for a coverage of Rs. 2,00,000=00 is sheer wastage of money. You may keep in Stock Exchange that gives you the highest return in long run. Now in the present market just purchase the ONGC shares and keep for 10/15 years. It would give you 30% return per annum. You can contact me when to purchase and what quantity. Secondly, purchase a flat in a metropolitan like Noida, Bangalure, Kolkata or Bhubaneswar according to your place of stay. Money invested in estates is bound to appreciate from 35% to 25% per annum and gives you a sense of security. In addition there are certain schemes with the Mutualfunds for Children’s Growth Schemes that would give you return for spending when your child would require higher education,as he grows. It is good that you are taking care of your future as a caring father and a responsible husband. God bless you !





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