Question 1

How much life cover does my family actually need?

Accepted Answer

A common starting point is enough to replace your income and clear any outstanding loans, so your family can maintain their life if something happens to you. The exact figure depends on your income, dependents, and liabilities — but the goal is simple: that those who rely on you aren't left financially stranded.

Question 2

Isn't my employer's health cover enough?

Accepted Answer

It's a good start, but it usually ends the day your job does — leaving you exposed between jobs or after retirement, when you may need it most. It also may not be large enough for a serious illness. That's why many people keep their own health policy alongside the office one.

Question 3

Is a Will really necessary, or can I keep it optional?

Accepted Answer

It's more necessary than most people realise. Without a Will, the law decides how your assets are distributed — which may not match your wishes, and often leaves families tangled in delays and disputes at the worst possible time. A nominee, importantly, is only a custodian, not the final owner. A clear Will is one of the kindest, simplest things you can do for the people you leave behind.

Question 4

What is the ideal age to start investing in mutual funds?

Accepted Answer

The honest answer is: as early as you can. Time is the most powerful ingredient in investing — money invested in your twenties has decades to compound. That said, the second-best time is always today, whatever your age.

Question 5

What's the difference between mutual funds, PMS, and SIF?

Accepted Answer

Broadly, they differ in who they're built for. Mutual funds pool money from many investors and suit almost everyone, at low minimums. PMS (Portfolio Management Services) offers a more customised portfolio for larger investors, with a higher entry threshold. SIF (Specialized Investment Fund) is a newer category sitting between the two, with more flexible strategies. Each has its place depending on your size, goals, and risk appetite.

Question 6

What's the minimum amount I can start investing with?

Accepted Answer

Less than most people think — you can begin a mutual fund SIP with as little as ₹500 a month. The amount matters far less than the habit; starting small and staying consistent beats waiting until you have a large sum.

Question 7

What's the point of insurance if I rarely claim?

Accepted Answer

That's exactly the point — insurance isn't meant to be "used." It's protection you hope never to need, quietly shielding your savings from a single large, unexpected event. Its value isn't in claiming; it's in not having your financial plans derailed when life goes wrong.

Question 8

Term insurance or a policy that "returns" my money — which is better?

Accepted Answer

They do different jobs. Term insurance is pure protection — low cost, high cover — meant to protect your family. Policies that also "returns" money mix insurance with savings, and usually cost far more for the same cover. Once you're clear on what each is for, the right choice for your situation usually becomes obvious.

1. Downloadable guides and Checklists:

Questions Before Your First Insurance Policy

Family Financial Checklist

Questions Before Your First Mutual Fund Investmen

2. Recommended reading: Few of my favorite books:

The Psychology of Money

One Up on Wall Street

The Intelligent Investor

Let's Talk Money

Rich Dad Poor Dad

3. FAQs: