Enter data only in green cells 1st child's education 16 500,000 10.0% 2,297,486 25,000 8.00% 85,649 8.00% 645,614 1st child's marriage 25 1,000,000 10.0% 10,834,706 100,000 8.00% 684,848 8.00% 1,482,061
Years to goal Present cost inflation Futire Cost Amt invested so far RoI of current invest. Future value of curr. Inv. If investing stops now lump-sum reqd. to achieve goal with a net ROI of incl. future value of current Investments =
if postponed, pm invest. Personal-loan, car-loan, and credit card debt are als examples of unsecured loans/debt. Home-loans are usually secur amount. Such loans need not be considered. Be sure to include all unsecured loans Unsecured Loan with EMI EMI 1 EMI 2 Loan Amount 1000000 1000000 Loan Duration in Years 10 10 Payments per year 12 12 Rate of Interest 9.00% 9.00% EMI being paid 12,667.58 12,667.58 How many installments have you paid? 36.00 36.00 Outstanding loan amount 787,340 787,340 preclosure penalty charges % (add 1% extra*) 3.00% 3.00% * 1% extra to account for fine-print charges and processing charges Amount needed for foreclosure of EMI-based loan 810,960 810,960 Total outstanding loan amount for non-EMI loans 500,000
(B) Provide for foreclosure of ou
(C) Provide f
Remember to exclude any expenses exclusiv to you! Nature of Expense Common monthly expenses for rest of your family Monthly expenses exclusive to your spouse Monthly expenses exclusive to your 1st child (not school fee) Monthly expenses exclusive to your 2nd child (not school fee) Monthly expenses for your parents +any other expense Annual school fee for 1st child Annual school fee for 2nd child * Rate of interest here refers to the interest earned by the corpus Total Expenses 30,000 10,000 5,000 5,000 10,000 100,000 100,000
What % of this expense can be cover from other sources* (eg. spouse inco % 25% 25% 10% 10% 0% 0% 0%
* consider only post-tax salary. If spouse is not working but can work/is likely to enter a conservative % based on a m The above %'s implies contribution to expenses from spouse income or other sources is
Your current annual expenses are (based on above entires)
920000 If you wish for your family to receive
The Deductib
Estimate your death benefits from your empoyer if any Group insurance benefit Current assets which can be sold to form part of corpus Current retirement savings other than EPF/NPS Current insurance incl endowment/money-back policy SA Total amount your family will receive upon your death 500,000 2,500,000 500000 500000 500000 4,500,000
Don’t include amount save for SA - sum assured
SUMMARY
Total insurance reqd for family life-events (A) Total insurance reqd for loan foreclosure (B) Total corpus reqd. for taking care of expenses (C)
4,960,238 2,121,921
15,484,903 with amt. increasing each year with s
OR
Provide for an emergency corpus for your family
500,000
If you wish for your family to receive a constant amount based on current annual expenses foreve
TOTAL INSURAN Option 1: increasing withdrawal amount for expenses matching inflation Option 2: constant withdrawal amout for expenses for a set number of years Option 3: constant withdrawal amount for expenses forever!
Total money available to your family if you die
including current policies, benefits, group insurance, sellable assets
Option 1 Option 2 Option 3
23,067,062 16,837,838 19,082,159
* the reminder of the money, if any, is to be used as an emergency corpus for your family, if opted for.
(A) Provide for important events in your family
2nd child's education 18 1,000,000 10.0% 5,559,917 100,000 8.00% 399,602 8.00% 1,291,364 2nd child's marriage 27 1,000,000 10.0% 13,109,994 100,000 8.00% 798,806 8.00% 1,541,198 SUM
4,960,238
or foreclosure of outstanding loan/debt amounts. Only unsecured loans are releva
EMI 3 0 10 12 9.00% 0.00 36.00 0 3.00% 0 EMI 4 0 10 12 9.00% 0.00 36.00 0 3.00% 0 SUM SUM 1,621,921 500,000
. Home-loans are usually secured loans (banks insist on an insurance policy equal to the loan amount.
(C) Provide for living expenses for your family
% of this expense can be covered ther sources* (eg. spouse income) Net expense 22500 This amount is needed for 7500 4500 4500 10000 100000 100000 This amount is needed for This amount is needed for This amount is needed for This amount is needed for This amount is needed for This amount is needed for
15 years with inflation of 25 years with inflation of 12 years with inflation of 15 years with inflation of 15 years with inflation of 12 years with inflation of 15 years with inflation of
10% 0% 0% 0% 10% 10% 10%
and rate of interst* and rate of interst* and rate of interst* and rate of interst* and rate of interst* and rate of interst* and rate of interst*
4% 4% 4% 4% 4% 4% 4%
a conservative % based on a modest salary he/she is likely to earn 11000 a month. Adjust above %'s until this amount is reasonable
Alternatively
wish for your family to receive this amt. forever! at an interest rate of
8% you need
The Deductibles
include amount save for childs education/wedding as assets
- sum assured
SUMMARY
mt. increasing each year with set inflation rate or
9,255,679
for constant withdrawal amt. for given number
OR
11,500,000
nt annual expenses forever at a set interest rate you will need
TOTAL INSURANCE AMOUNT REQUIRED 18,567,062 OR 185.67 Lakhs 12,337,838 OR 123.38 Lakhs 14,582,159 OR 145.82 Lakhs
Investment break-up for the three categories* (A) (B) (C) 22% 9% 67% IMPORTANT: This breakup or at least a similar breakup should 29% 13% 55% legal heir. Ideally they should know about this during your life see a fee-only certified financial planner for advise on how to 26% 11% 60%
ly, if opted for.
loans are relevant
requires requires requires requires requires requires requires SUM
CORPUS CORPUS 6,175,155 OR 3,122,043 WITHOUT inflation 1,462,227 OR 1,462,227 WITHOUT inflation 527,066 OR 624,409 OR 1,664,439 OR 527,066 624,409 976,048 WITHOUT inflation WITHOUT inflation WITHOUT inflation
2,744,513 OR 1,387,575 WITHOUT inflation 2,287,095 OR 1,156,312 WITHOUT inflation 15,484,903 OR 9,255,679 WITHOUT inflation
11,500,000
wal amt. for given number of years in both cases
milar breakup should be accessible to your spouse or this during your lifetime. You should also urge them to for advise on how to handle the investments