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Let's Talk Money Team


Q 1) Jaspreet ,Subject: Insurance query

My profile: 38 yrs; family of 4, wife with 2 children (3.5 yrs son & 1.5
yrs daughter); CTC : 12.5L PA.

Insurance cover : wife 2 L (Jeevan Anand) ; self : 2 L (Jeevan Nidhi) ; all the
investment in diversified MF (SIP route); own a flat. I will be immigrating to
Australia by this year end and have the following queries:

1. I am planning to take a term plan; what shall be the cover.

2. Shall I buy a health insurance also as I have company group health insurance
of 2L.

3. If I am immigrating (as an NRI) will the above 2 applicable in that country


J Singh




As a thumb rule, you should have life insurance
cover of 10 times of your annual income minus your realizable assets ( except
owned home and personal assets) plus outstanding loans. So, you should have
insurance cover of 1.25 crore. You can buy an online term plan since the
premiums are cheapest. You should buy the policy at earliest before you fly
overseas. You will need to buy the cover while you are still in India but the
cover will continue even after you emigrate to Australia provided you keep
remitting premium.


Online Term Plans







AXA e-protect



1.25 crore





1.25 crore



It is always advisable to have a separate health
insurance policy over employer policy because employer health policy will not
continue cover after the retirement or when you leave job or benefit may get
reduced from year to year.
Your life insurance policy will continue as
it is till you pay further premiums. You can buy health insurance policy while
you are still in India and it will still continue to remain valid (except
Apollo Munich) as long as you keep paying premium. However all health insurance
policies pay for hospitalisation expenses incurred in India only.

You should buy individual health insurance of Rs.3
lakh for yourself and family. You should also buy a top-up plan of Rs.10 lakhs
family floater, with 3 lakh deductible.


Recommended Plans: 
Bajaj Allianz renewable up to age 80 years. Or Max Bupa renewable till
life time but co-pay of 20% after 65 years.


Q 2) victor cardozo

I am
27 yrs old and my income annually is about 5,00,000/-. So I just wanted to know
how much and where should I invest my money for better growth. Well at present
I am invested in max New York life insurance at an annual premium of 86000/-
since Dec/2008. Hoping you would guide me and make my life a little more




It is not advisable to invest in insurance products.
Your existing insurance plan requires review. Always keep yourself adequately
covered with proper term Plan if anybody is dependant on your income. By rule
of thumb it should be 10 times of your annual Income i.e 50 lakhs, provided you
have dependants.







AXA e-protect








50 lakhs




Also buy adequate health insurance cover i.e. 3
lakhs individual cover and 5 lakhs top up plan with deductible of 3 lakhs.
Total premium for both put together will be around Rs. 4,800. You should make
specific goals and invest in specific assets for each goal. Consult a Certified
Financial Planning firm such as Apna Paisa for getting your financial plan


Q 3) Anant


I regularly watch the "Lets Talk
Money" show. I'd like to know if there is any website portal through which
I can buy or sell Different Mutual fund Schemes of Different Fund houses? 
And if yes how do they charge? Are they credible?




There are
players offering online buying and selling Mutual fund services such as ICICI
direct, HDFC securities and NJ funds. For charges it will depend form one
service provider to another
. Yes, they are safe and you
can track your portfolio online.


Q 4)

Hi Team,



I have
query on medical insurance; attached file has complete details regarding the
same. I request your urgent help on this since policy is due for renewal soon.

contact no - 9884362094.



For ref
…(My parents have medical insurance with Reliance General Insurance since 2007,
my dad is 63 yrs (1948 born) and mom is 59 yrs (1952 born), their policy
details are

Family Floater; Sum Insured – 4 Lakhs

Details since start of the policy

2007 – 08
– 5964.00 (plan type - silver)

2008 – 09
– 7648.00 (plan type - silver)

2009 – 10
– 5368.00 (plan type - silver)

2010 – 11
– 9126.00 (plan type - silver)

2011 – 12
– 25818.00 (plan type - standard), we choose standard over silver because
36076.00 was premium amount for silver plan.

2012 – 13
– 27337.00 (plan type - standard) due for renewal.

In 2009
my dad went through open heart surgery (valve replacement) and it costed appx 3
lakhs, most of which we got it claimed post surgery.

After the
claim year the premium amount has increased drastically and when I checked with
Reliance they said it will be higher for that year due to claim, however this
time also it is very high and when I check with them again there is no proper
response. This policy covers only till the age of 65 years.

I would
like to know what I should do, should I continue or can I migrate to other
company. The policy expires on 16th Mar 2012.

What is
the difference here between plan type – silver & standard, will this make
any difference.

Pls suggest
best possible options with lifetime cover.


I also
have a policy for myself with reliance for a cover of 1 lakh, standard plan and
my premium amount is 1522.00, I would like to increase my cover to 3 lakhs,
hopefully enough. I am 32 years old and single. Can I increase my cover with
reliance itself, or can you suggest options. Is optima restore from Apollo a
good option.

suggest plans for long term.)








You have bought Reliance Health wise Family floater
health insurance for your parents. This Policy feature is no loading on premium
because of claim and renewable up to 75 years. At this age of your parents with
heart surgery it is difficult to get new policy, so it is better to continue
with this policy. If they are refusing to renew up to year 75 and no loading on
premium you can to Ombudsman or to IRDA grievance cell after putting the
complaint on the insurance company’s website and waiting for 30 days for a
response. For details log on www.irda.gov.in


plan covers pre existing disease after 2 years and standard plan after period
of 4 years. Standard plan does not cover expense of organ donor where as silver
plans covers the same.


You can use health insurance portability for
your individual health plan or port from reliance Health wise policy to Apollo
munich’s Optima Restore plan for 3 lakhs. Also take top up health plan of
5lakhs with deductible of 3 lakhs. Apollo munich comes with lifetime renewable
and no room rent sub limits and no co-payment. Premium for both will be around
Rs. 6,000 yearly. Please note that cover will cease automatically if you start
residing outside India.



Q 4) Kapil

Dear Manisha,


I am a 32-year-old serving army officer,
and have been watching your program off and on, and I think you and your team
of experts would be best suited to assist me in my predicament.


Well, I would like to start by
confessing that I am an absolute "Financial Illiterate", I met a
few good people who forced me to buy a house just prior to the RE boom, and I
remain ever thankful to them, now, I earn about 8.5 L PA, and have no personal
obligations, my investments in army provident fund which I subscribe heavily,
and other pensionary benefits would provide me about 60-70 L when I plan
to retire in next 8-10 years and switch career. I think I need not plan for
retirement, as I would receive substantial pension along with medical
facilities and educational subsidies. My current savings in gold bullion and
FDs amount to 4-5 L, my only other investment is a small time ULIP of 25K PA.
You would now agree that I reside in an investor's 'Stone Age'. 

  However, I am writing to you for
seeking advice on some other issue. Recently, my cousins have decided to
dispose of some of our ancestral property, and my share is likely to be in
the range of 60-70 L, now, I wasn’t prepared for this windfall and not sure as
to how that amount should be invested so as to maximize my returns, I belong to
Pune and, RE appears to be a good option, however in case you believe
that i would be better off with some other mode of investment, I would be
grateful if you could advise me on the same. 
I am presently posted to a remote location and cannot contact you on





Assuming you are already covered by Army for
life and health insurance, we would first suggest you to prioritize your goals
before you start your investment by taking into account risk ability. Take a
proper guidance of Certified Financial Planner, going through which you can
have financially sound life. Keep your investment and insurance separate, as it
will help you to reach desired goals. There are tax implications on the receipt
of money from sale of ancestral property and it is not possible to advice
without having complete details. 
Ignoring the tax implications on the receipt of the money it is advisable
to get exposure to equity by investing into Balanced Fund
Schemes of MF by monthly
SIP Like– HDFC Prudence Fund, Reliance Regular Savings-Balanced Plan.



Q 5)

Sir, I have been viewing your show and am really impressed with your comments
on queries. I am an NRI and have a few queries myself.

I have not yet invested a single penny till now and I am 29 yrs married with
two daughters. I earn a pretty decent package and can invest around 50k INR,
though it would be nice if I needn’t invest the whole to attain my target.

So here is my future goals

20 lakhs each for my daughters education making it 40lakhs

50 lakhs each for my daughters wedding making it 1 cr

1 cr for a house which I intend to buy in the coming years

50 lakhs for two vehicles which I have
been longing for long

2 cr as retirement amount so I can live on the interest making it an FD after
retirement (I would be looking at a pension scheme gradually summing up to 2cr)

So I am looking at 5cr as the desired target. I am not much aware of the mutual
fund schemes and insurance schemes (LIC) in India. It would be nice if you
could advise me the amount to be invested and the name of organizations (HDFC,
ICICI etc) and schemes that I should be investing. I would like to know
how much should I be pulling in from now to reach the target and how many years
would I be looking at to reach the desired. I was looking at 20yrs for the
target though earlier on the "house & Vehicle" target.

Hoping to have a positive input from




First of all you have to set realistic goals
which are achievable from your surplus available and have also to priories your
goals. It is advisable to take professional advice from Financial Planner. It
is advisable to take adequate life and health insurance before starting
investment for future goals.


As you have mentioned you want to buy flat
which should be the priority, but Rs. 1 crore flat is not possible looking at
you do not have any assets for down payment and also your surplus of 50k will
not be suffice to service the EMI. Even suppose you finalise to buy 60 lakhs
flat after 3 years and take 50 lakhs loan than your entire surplus will be
utilized to service home loan and there will not be any surplus available for
other goals.


Till you finailse your future action, you can
invest surplus of Rs. 50k in balanced fund for next 5 to 6 years and take your
future action. HDFC Prudence Fund and Reliance Regular Savings Fund are good
funds to invest.



Q 6) Shafeeq

I'm shafeeq from Kerala... I want to know about start a
demat acc...

How much minimum amount required buying shares?? Please reply





You can open a demat account with any registered
stockbroker or any of the bank providing trading facility. Requirement of
amount will depends on the price of shares, which you buy. If the share price
is 100 and you want to buy 100 shares of it you require at least Rs10, 000.

It advisable not to invest directly in the market as
it require in-depth knowledge and also deep research. Instead we advise you to start
with equity Mutual Fund through monthly Systematic Investment Plan.



Q 7) Jackson


 I like your show let Talk money. Good

 I hold a saving account with
Corporation Bank. I want to convert it to Flexible Term Deposit as it earns
good interest rate when compared to savings account. Please suggest if I should
convert it or not.


 Money Flex 

The flexible Term Deposit - it is a friendly, flexible fixed deposit scheme
that won't block your money for the full term of the deposit. The scheme allows
you to withdraw your money whenever you please. The deposit can be made for a
period ranging from 6 to 120 months. The minimum deposit is Rs. 5,000.
Additional deposits can be made in multiples of Rs.1,000. The rate of interest
depends on the period of deposit.

You can earn interest on your fixed deposit as per applicable rates. You can
withdraw a part of the deposit without having to permanently close the entire
deposit. The amount deposited is held in units of Rs. 1000 each to facilitate
part withdrawal. In sum, it is an ideal scheme for people who would like to
have easy access to their fixed deposits without any hassles.






scheme is nothing but savings linked FD where you earn higher rate of interest
compared to savings account. This is not a great long term investment option
but good for idle money which is not required for say 3 months to 6 months
time. It is also good option for contingency fund i.e. money required to kept
aside equal to 6 months expenses.



Q 9) Madhurjya


Dear Sir/mam,

     I m a govt employee
in Assam, India having salary of around 30,000.00 per month. I m working as
Asstt. Engineer since 2009 after completing my B.E. in 2009. My age at present
is 25 yrs.

     I have done the
following savings since these 2 and half yrs.

     LIC (5 lakhs) for 26
yrs : Qtrly premium = Rs. 4669.00

     PLI (5 lakhs) for 31
yrs : Monthly premium = Rs. 1175.00

     HDFC standard life
insurance (mutual fund) for 15 yrs : Yearly premium = Rs. 15000.00

     ICICI pru life
insurance (mutual fund) for 30 yrs : Yearly premium = Rs. 10000.00

     Max New York
(Traditional policy) Premium for 6 yrs and maturity after 20 yrs : Yearly
premium = Rs. 30000.00

     Reccurring Deposit in Post office for
5 yrs : Monthly = Rs. 3000.00

 I hve purchased a car and the EMI
of car loan is = Rs. 4700.00

I want to knw whether my savings are
good and reasonable. Please guide me considering my age (25 yrs) whether I have
done good to save these amounts because now I find that I am left with very
little money at the month ending after saving all these. Some people say I have
done too much saving. What do you say?

     Please suggest me
and make a good plan for my future.

With regards

Madhurjya Dutta

Sonitpur, Assam, India



It is not advisable to invest in insurance products
and your major investment is happening in insurance. Your insurance portfolio
requires review as one should never mix insurance and investments. It is
possible that on the review financial planner is likely to suggest surrendering
most of the insurance plans you have. You should use the surrender money to pay
off the car loan immediately. Your investment in HDFC and ICICI is also
insurance investment and not MF investment. I guess you have been sold ULIP’s
in the name of Mutual Funds. You should have life insurance only if you have
any dependents.


If you have dependents then you
should buy online term insurance of Rs.35 lakhs.










35 lakhs








You need to also to buy health
insurance for yourself of Rs.3 lakh and a top-up plan of Rs.5 lakh with a
deductible of Rs.3 lakh. This will cost you Rs.4,800 yearly. You should invest
the balance surplus in Balanced Mutual Funds via SIP.

Balanced Schemes – HDFC Prudence Fund, Reliance Regular Savings-Balanced Plan



10) Karthik Ram


PFB my profile and requirements.


DOB - Feb 5, 1986

Current Location - Lagos, Nigeria

Monthly income - Rs 1.5 Lakhs

Achievements - Repaid 11 lakhs
education loan and 7.5 lakhs car loan in 2 years

Assets - bought 4 lakhs worth physical
gold, a year back, Rs. 12 lakhs in SB

Investments - Nil :-(

Liabilities - 5 lakh, New car loan EMI
Rs. 11,000 for 5 years.

Future Liabilities - Rs. 50 Lakh Home
loan (planning to take after 1 year) Marriage expenses - 10 Lakhs (have
separate fund - No problem)

Growth in salary - 10% Annually average


I have a total of 5 Requirements as

Requirement 1: Insurance - Pure Life

In case of my demise, my dependents should
get Rs 5 crore. In case of term plan, the insurance should cover even if I
survive the term period of say 30 years. I am looking for a whole life cover,
however I do not expect any survival benefits. All benefits
should go to my dependents/legal heir on my demise, whenever that has to


Requirement 2:
Retirement preparations

I am planning to retire in the next 20 - 25
years. Requiring a retirement corpus fund of about 3 crore (inflation at 6%
annual). What benefits should I plan to get out of this saving. Should I look
for a lump sum on retirement or a monthly income pension plan? If I
survive the period, I know I will enjoy the benefits. However in the case of my
demise before I retire, to what extent my dependents will enjoy the

If I collect the lump sum on retirement, I
know my legal heirs will enjoy the lump sum, on my demise. Lets say I take a
post retirement monthly income plan, and I retire and start getting pensions and
the untoward is to happen, 2 years after retiring, I collected only 2 years of
pension. But I am sure I paid a lot, over these 25 years. So after my demise
what benefits will my family have if I opt for monthly income pension plan?
Should I go for Insurance company's Endowment plans or should I consider only
SIPs? I am putting the money away for good 20-25 years.


Requirement 4: Child
Education/Marriage Cover

I will have my first kid in the next 3
years and the second one in 7 years. So I need to save for their education
and/or marriage expenses. So please advice how much should I save now so that
they have good enough money for education/marriage. Since the kids do not
exist, as of now, do I have the option of Child plans of various insurance
companies. Should I consider SIP? I am putting aside the money for good 21
years minimum.


Requirement 5: Health cover for
parents including critical illness

Dad is 58 (Heart attack in 2007, Spine
surgery in 2005, Hip replacement in 2001)

Mom is 48 (Diabetic and has thyroid

Suggest health covers for them, 3-5 lakhs
cover for each.


Note: In any of the cases, I cannot opt for
one time lump sum payment. I prefer annual/half yearly premium payments for
insurance/endowment plans and monthly investments in the case of SIP.



Warm Regards,

Karthik Ram Chandar M R

Lagos, Nigeria.

+234 8056 098 633




Your requirements are too detailed for the
column. It is advisable to consult professional like certified financial
planner and make a financial plan for your family.

7 years ago

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About The Anchor: Manisha Natarajan

Manisha Natarajan is Executive Editor Business and Real Estate at NDTV. She currently hosts the daily prime time real estate programme 'The Property Show' and a weekend personal finance show ‘Let's Talk Money’.

Manisha learnt the ropes of television journalism as a reporter for BBC World's 'Moneywise' and 'India Business Report'. She has anchored over 1000 hours of live business news, including key events such as the Union Budget, Economic Survey, Credit Policy and Tax Roundtables.

She's also a keen blogger on ndtv.com and has been an in between columnist with Indian Express - ‘Stock Talk’ and Mint - ‘Money Matters’.

About The Show

There are either personal finance shows or business shows. The two don't meet. Let's Talk Money decodes top business headlines for your wallet.

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