Express Clinic

Dec 31 2012, 01:23 IST
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SummaryKuldeep Singh Rawat has recently joined a new firm in Jammu. Earlier, he was posted in Mumbai and he found it very difficult to save enough

Name:Kuldeep Singh Rawat (43)

Resides in Jammu

Profession: Senior Manager in MNC

Net annual income

( Rs 10.80 lakh )

Status & goals

Kuldeep Singh Rawat has recently joined a new firm in Jammu. Earlier, he was posted in Mumbai and he found it very difficult to save enough for his future due to the high cost of living in the city. Now, the new company has given him a hike in his salary while the cost of living in Jammu has also come down. Kuldeeps wife Sapna (41) is a homemaker. They have a 12-year-old son Raghav.

Kuldeep want to plan for Raghavs future and wants a financial plan which will help him achieve his life goals comfortably.


A comprehensive financial plan securing childs education and an early retirement, along with adequate protection planning

Existing Investments:

PPF : R5 lakh

Bank Fixed Deposit : R2 lakh


Emergency fund: Kuldeep is considering a fixed deposit as a liquid investment which he can break anytime during an emergency

Life insurance: He has some ULIP policies in his portfolio with total sum assured of R15 lakh. Hes paying annual premium of R45,000.

Health Insurance: He has got coverage of R3 lakh for his family from employer and a separate coverage of R5 lakh.

Investments: His investment is 100% into safe debt category and some ULIP policies.

Liabilities: He does not have any loan.

Provident fund: His PF balance is R8 lakh and hes contributing Rs 3,360 p.m. into this and equal contribution is being made by his employer. He expects 10% increase in his salary every year


Emergency fund: He needs to break his fixed deposit and keep R1.10 lakh in his saving account and maintain it as emergency fund.

Express TIP: Emergency fund should always be available immediately otherwise it defeats the purpose. Maintaining FD for emergency purpose can backfire sometimes if there are continuous public holidays and you need the money that time.

Life Insurance: Kuldeep should buy insurance cover of R1 crore and that too through a term insurance plan. This will cost him around R30,000/-p.a for 15 years.

Express TIP: Life insurance policy should be purchased keeping in mind the death benefit not the survival benefits.

Health Insurance: Kuldeep has sufficient health insurance coverage as of now. Going forward, he may consider to convert his floater health insurance policy to individual policy.

Express tip: Buying a health insurance cover over the employer provided coverage is always a wise.

Accident Insurance: Kuldeep should buy an

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