Investment Blog

Zingadi ke saath bhi, Zindagi ke baad bhi…

Let’s specifically talk about,

JUST Aane waali Zindagi – Securing our family life for the next 6-12 months

That’s your Financial EMERGENCY Preparedness.

Four very critical things to consider:

#1 Contingency Fund

Establish a separate fund to cover at least 6 months of essential living expenses (should ideally go higher to 12-15 months). For example, if your monthly expenses are Rs 1 lakh, allocate at least Rs 6 lakhs. Consider investing in safe, ultra-short-term liquid funds, currently yielding ~7.5%, offering a better alternative to bank savings accounts.

#2 Adequate Life and Health Insurance Coverage

Ensure you have sufficient health insurance—at least Rs 20 lakhs for a family of four in a metro city. A family floater plan with critical illness coverage is advisable. 

To calculate life insurance, use this formula: 

=Inflation-Adjusted Household Expenses + Value of Financial Goals – Net Worth (Excluding Primary Residence)

Opt for pure-term plans and avoid ULIPs or endowment plans.

#3 Organized Financial Records

Imagine to have a house but not the key to enter inside! Hence, ensure that your partner, children, or legal guardian knows how to access financial information in case of an emergency. Maintain records of bank accounts, investments, policy documents, and more, in an easily accessible format.

#4 Nominee Role

For investments, the nominee acts as a custodian. Make sure the nominee’s full name and relationship are specified. A registered will is essential for smooth asset transfer.

So, what can you do Quickly? Let’s recap…

✅ Build your contingency fund 

✅ Get adequate health & life insurance 

✅ Organize your financial documents & share access 

✅ Update beneficiaries online 

Originally posted on LinkedIn: www.linkedin.com/shivanichopra