I am 36 years old and earn Rs10 lakh per annum. My wife earns Rs12,000 a month. Our monthly expenses are Rs35,000. We have a 2-year-old daughter and my dependent parents. My father has a debt of Rs6 lakh, which I am repaying. I have taken a 20-year LIC Jeevan Anand plan and will get about Rs20 lakh on maturity in 2031. I also have a health cover of Rs10 lakh for my family and parents. We also have an emergency fund of Rs3 lakh. Should I continue with the LIC policy? I also wish to save for my daughter’s education and marriage, and my retirement. How should I go about these goals?
—Rahul Bhalla
It is good to understand the true purpose of insurance before you start investment planning. The intent behind insurance is to provide financial protection to your family in case you are not there, and to ensure that the financial plan you have drawn for them runs smoothly.