I am a scientist in Central Government. I am 28 years old.I have a son and a wife (housewife). I have been making following investments regularly with a monthly take home income of ₹55000 with free medical and free govt house:
- Postal Life Insurance (Post Office): a) 10 lakhs- ₹4225 per month for 20 years b) 10 lakhs- ₹2596 per month for 30 years
- Public Provident Fund (SBI) ₹1.5 lakh per year for 15 years
- Mutual Funds (HDFC, UTI, Reliance) and ELSS (Reliance): ₹9,000 per month
- National Pension Scheme: currently a deduction of ₹12,000 per month (keeps on increasing by ₹2,000 after every 6 month) until I retire after 35 years of service.
Am I investing properly? Should I increase the amount of mutual funds? Is PLI a good option or should I close it after three years?
- Prashant Kumar
Since you are the sole breadwinner of your family, you must consider increasing your life insurance cover. A life insurance cover of ₹20 lakh will not take care of the needs of your financial dependents. You should check online term plans to buy an adequate cover.Term plans are the best option to buy a life insurance cover, as they help you buy a large cover with a small cover. Postal Life Insurance doesn't offer term plans.
If you have surplus money every month after taking care of your regular expenses, you should consider increasing your investments in equity mutual funds to achieve your long-term financial goals.
This article was originally published on January 08, 2016.
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