What will be salary as insurance advisor

Ans: Hi P, you can opt for Term insurance policies but given your age, the premiums for the same will be high. Check with few insurance companies and then decide for the best plan.

Ans: which options?

A career in insurance involves a combination of gaining relevant education, acquiring practical experience, developing key skills, networking, and continually seeking opportunities for advancement.

1. Make sure you have the necessary certifications such as Chartered Property Casualty Underwriter (CPCU), Associate in Risk Management (ARM), Chartered Life Underwriter (CLU), or Certified Insurance Counselor (CIC), depending on your area of interest within the insurance industry.

2. Familiarize yourself with industry-specific software and tools used for underwriting, claims processing, and risk assessment.

3. Become a member of industry associations such as the Insurance Institute of America (IIA), Professional Insurance Agents (PIA), or National Association of Professional Surplus Lines Offices (NAPSLO).

4. Develop leadership skills, take on additional responsibilities, and demonstrate your value as a proactive and capable employee.

Ans: Current Financial Overview
You are 32 years old and earn Rs 90,000 per month as a consultant. Your current investments are as follows:

Rs 38,000 per month in Mutual Funds
Rs 20,000 per month saved for marriage
Rs 20,000 annually on Health Insurance
Starting next month, you plan to increase your SIP to Rs 50,000.

Mutual Fund Investments
Your commitment to investing Rs 50,000 per month in mutual funds is commendable. Here's an approach to ensure optimal growth:

Diversification: Ensure your mutual funds are diversified across large-cap, mid-cap, small-cap, and multi-cap funds.

Regular Monitoring: Review the performance of your funds quarterly. Adjust your portfolio if necessary, based on the performance and market conditions.

Long-Term Focus: Maintain a long-term investment horizon to maximize returns. Avoid frequent changes based on short-term market fluctuations.

Saving for Marriage
Saving Rs 20,000 per month for your upcoming marriage is a prudent move. Consider these points:

High-Interest Savings Account: Keep this money in a high-interest savings account or a liquid mutual fund. This ensures safety and liquidity.

Avoid Risky Investments: As the wedding is near, avoid risky investments. Prioritize safety and liquidity over high returns.

Health Insurance
Your current health insurance premium is Rs 20,000 per year. When you get married, you will need to include your spouse in the plan:

Family Floater Plan: Consider switching to a family floater health insurance plan. It provides coverage for your entire family under one policy.

Adequate Coverage: Ensure the sum insured is adequate to cover both you and your spouse. Opt for a higher coverage if needed.

Life Insurance
Life insurance is essential to secure your family's financial future. Here are some tips:

Term Insurance: Opt for a term insurance plan. It offers a high sum assured at a low premium.

Coverage Amount: Ensure the coverage amount is at least 10-15 times your annual income. This ensures your family is financially secure in case of any unfortunate event.

Critical Illness Rider: Consider adding a critical illness rider to your policy. It provides a lump sum amount if you are diagnosed with a critical illness.

Investment Strategy Post-Marriage
Post-marriage, your financial responsibilities will increase. Here’s a structured plan:

Emergency Fund: Maintain an emergency fund that covers 6-12 months of expenses. This fund should be easily accessible.

Retirement Planning: Start planning for retirement early. Invest in a mix of equity and debt instruments to build a substantial corpus.

Child Education Fund: If you plan to have children, start a child education fund. Invest systematically to ensure you can cover future education expenses.

Key Recommendations
Increase Investments: Increase your SIP to Rs 50,000 as planned. Diversify your investments across different types of mutual funds.

Health Insurance: Switch to a family floater plan post-marriage. Ensure the coverage amount is sufficient.

Life Insurance: Opt for a term insurance plan with adequate coverage. Consider adding a critical illness rider.

Emergency Fund: Maintain an emergency fund for unforeseen expenses.

Long-Term Goals: Plan for retirement and future child education systematically.

Final Insights
Your current financial plan is solid. With a few adjustments and strategic planning, you can secure your financial future. Regularly review your investments and make necessary adjustments to stay on track.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in