Simple SIX - Towards Better Financial Life
1. Protect Yourself & Family: - Take Family Floater Mediclaim Policy :- we come around lots of people who claim that their companies are paying premium and covering whole family under group insurance, I fully agree with the same but what if you change the job ? what if you start a business ? Rethink the same. 2. Take A Term Policy: - many people say / believe that money paid on the term don’t comes back, but the fact is when you buy a term policy & put rest of the money in PPF or VPF (voluntary PF) / mutual fund sip. This will be a good combination then going for a Ulip or an Endowment Plans, Separate your Insurance & Investments. 3. Build an Emergency / Contingency Fund – the fund should be 6 to 8 months Expenses, you can park either in Bank FD or in Mutual Fund’s Liquid funds (now a days you can withdraw money with a single click / sms / visa debit card from mutual funds) also tax efficient.