Question

We are parents to a two-year-old girl and we want is the right time to to know v. have a child insurance policy. Also, what are the aspects to keep in mind before buying any policy so that we can gift her a secure future?

– SUKHBEER SINGH. CHANDIGARH

Answer

A child insurance policy may be availed for a child having attained the minimum age of 30 days (depending upon insurers. the minimum age may
go up to eight years). A child insurance policy ideally covers the parents till the child attains maturity. thereafter the insurance cover is for the child.

Keep the following points in mind:

1. Term of the policy. Keep in mind the occasion when the invested amount may be utilized (higher education, marriage.
   et cetera).
2. Type of policies: Choose from a traditional plan that invests mainly in government-backed securities and has lower. but assured returns. Or go for a unit-linked plan that has relatively higher returns. due to investment in equities but it also has higher risk factors associated with them.
3. Cost of insurance and administrative costs: These are costs associated with each policy. and lower costs for each of them are preferable.

Question

We were a family of four, until my father expired at the age of just 58 years in December last year. My father did not leave a will and all of a sudden, my brother is insisting that we sell the property and divide. Can he damage our rights to the property legally?

– REENA PATHAK, GUJARAT

Answer

In the present case. each individual is legally entitled to one-third of the immovable property This implies that unless your mother relinquishes her share. your brother cannot go ahead with the proposed division. Given these facts, whether you choose to liquidate the asset or not, each individual is entitled to an equal proportion of the asset.

Question

I used to spend extravagantly but now I plan to become mere responsible. I earn 50,000 a month and I can easily limit my expenses to 20,000. Could you please suggest some ways to save intelligently?

– MILAN, NEW DELHI

Answer

At the onset. it is suggested that may proceed to take an insurance cover for about 10 times your annual income (Rs. 60 lakhs) and post-that, you should divide the remaining portion between the following:

1. Traditional products (Debt): Post. office deposit schemes, bank fixed deposits, bank recurring deposits debt-mutual funds.
2. Direct equity investment: Preferably Blue-Chip companies only.
3. Equity-linked mutual funds: Either upfront investment or through System Investment Plans (SIP).
4. Commodities: Gold, silver et cetera. Considering your age and upcoming financial commitments., and assuming there is no prior lump-sum amount available for investment, it is that suggested the portfolio may consist primarily of regular payments in SIP’s and Recurring Deposit schemes.