Express Clinic

Name:Sanjeev (36) and Saadgi (32)

Resides in delhi

Profession: banking professional

Net annual income

( Rs 12,69,600 )

Status & goals

Sanjeev is the sole earning member of a family of five — wife, daughter, parents and himself. Sanjeev works at a bank. At present, he and his family stay with his parents in Delhi. His parents are not financially dependent on him. He wants to plan for his children's higher education and marriage, while purchasing a new car and a second house is also in his mind.

Needed

A systematic financial plan to achieve long-term goals.

Net monthly surplus

Rs 65,800

Existing Investments:

EPF & Superannuation : R 7 lakh

Bank FD : R 4.50 lakh

Equity MF : R16.33 lakh

Gold Fund : R 70,000

Direct Equity : R 1.70 lakh

Plot of Land : R 10 lakh

Findings

Emergency fund: He has maintained emergency fund in bank FD equal to 6 months expenses.

Life insurance: Sanjeev is adequately covered for life insurance

Health Insurance: He and his family are not fully covered for health insurance.

Investments: He has started early by investing in equity via SIPs which will give him benefit of power of compounding

Provident fund: He has a good balance in EPF and super annuation as well.

Recommendations

Emergency fund: Sanjeev needs to keep his R4.50 lakh bank FD aside and maintain it as an emergency fund.

Life Insurance: Sanjeev should be having life cover of at least R2.51 crore. He has bought five insurance plans in his name. He is advised to surrender pension plan. He can continue his LIC plan as debt portfolio and all three term plans.

Health Insurance: Sanjeev should continue his family floater health insurance policy of R9 lakh. Additionally, buy top-up health insurance of R15 lakh with deductible of R5 lakh for his family. It would cost him around R7,900 p.a. Continue parents health insurance.

... contd.

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