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 =
1st child's
marriage
25
1,000,000
10.0%
10,834,706
100,000
8.00%
684,848
8.00%
645,614
8.00%
1,482,061
(B) Provide for foreclosure of ou
if postponed, pm invest.
Personal-loan, car-loan, and credit card debt are als examples of unsecured loans/debt. Home-loans are usually secu
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
(C) Provide f
Remember to exclude any expenses exclusiv to you!
Nature of Expense
Total
Expenses
What % of this expense can be cover
from other sources* (eg. spouse inco
%
Common monthly expenses for rest of your family
30,000
25%
Monthly expenses exclusive to your spouse
10,000
25%
Monthly expenses exclusive to your 1st child (not school fee)
5,000
10%
Monthly expenses exclusive to your 2nd child (not school fee)
5,000
10%
Monthly expenses for your parents +any other expense
10,000
0%
Annual school fee for 1st child
100,000
0%
Annual school fee for 2nd child
100,000
0%
* Rate of interest here refers to the interest earned by the corpus
* 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)
4,960,238
Total insurance reqd for loan foreclosure (B)
2,121,921
Total corpus reqd. for taking care of expenses (C)
15,484,903 with amt. increasing each year with s
OR
If you wish for your family to receive a constant amount based on current annual expenses forever
Provide for an emergency corpus for your family
500,000
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
Home-loans are usually secured loans (banks insist on an insurance policy equal to the loan amount.
EMI 3
0
10
12
9.00%
0.00
36.00
0
3.00%
EMI 4
0
10
12
9.00%
0.00
36.00
0
3.00%
0
0
SUM
SUM
1,621,921
500,000
(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
15 years with inflation of
7500
This amount is needed for
25 years with inflation of
4500
This amount is needed for
12 years with inflation of
4500
This amount is needed for
15 years with inflation of
10000
This amount is needed for
15 years with inflation of
100000
This amount is needed for
12 years with inflation of
100000
This amount is needed for
15 years with inflation of
10%
0%
0%
0%
10%
10%
10%
conservative % based on a modest salary he/she is likely to earn
11000
a month. Adjust above %'s until this amount is reasonable
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%
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
annual expenses forever at a set interest rate you will need
11,500,000
TOTAL INSURANCE AMOUNT REQUIRED
18,567,062
185.671 Lakhs
OR
12,337,838
123.378 Lakhs
OR
14,582,159
145.822 Lakhs
OR
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 lifet
26%
11%
60%
see a fee-only certified financial planner for advise on how to
y, if opted for.
loans are relevant
CORPUS
CORPUS
requires
6,175,155 OR 3,122,043 WITHOUT inflation
requires
1,462,227 OR 1,462,227 WITHOUT inflation
requires
527,066 OR
527,066
WITHOUT inflation
requires
624,409 OR
624,409
WITHOUT inflation
requires
2,744,513 OR 1,387,575 WITHOUT inflation
requires
1,664,439 OR
requires
2,287,095 OR 1,156,312 WITHOUT inflation
SUM
976,048
WITHOUT inflation
15,484,903 OR 9,255,679 WITHOUT inflation
11,500,000
al 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
or advise on how to handle the investments