and his father has retired.
Marriage heralds the beginning of financial responsibility as one starts a family. Additionally in the case of Rahul his father is living on his pension. He would now need to become more responsible and also be in a position to extend any financial support needed for his father.
Now there are two aspects of security that Rahul must cater for – His wife and his parents. Thus he will have to work out the exact amount of life cover that he needs and then take policies accordingly. Typically a cover of Rs. 30 L, for a premium paying tenure of 20 years will have a monthly premium of Rs 11000/- on average which is adequate in this circumstance.
Health insurance for husband as well as wife must be opted for right after marriage. Rahul can take any such joint plan with a cover of about Rs. 3L, which will require an annual premium of about Rs. 4000 providing facilities such as cashless treatment, pre and post hospitalization expenses and cost of treatment of listed conditions.
This is the right time for Rahul to start investment planning by opting for any of the market options available after a thorough study and consultation with his professional financial advisor. Some of the common options available are shares, mutual funds, ULIPs and more secure instruments like fixed deposits in banks. However since Rahul has age on his side he should opt for slightly aggressive products that could give him better returns.
This is the right time for Rahul to take stock of the situation and chart out his financial goals in terms of assets that he desires to accumulate over the next two decades. These goals will henceforth dictate his savings and insurance plans.
Rahul will need to have to look at the retirement planning tools available in the market and commence making a small contribution towards this aspect to have a sizeable amount by the time he reaches the age of 50.
Rahul, 35, is now the proud father of a 2 year old daughter and has an annual