What should we buy first Life insurance or Health insurance ?

What should we buy first? Life insurance or Health insurance?

Many people ask me this question, and I also think " ANDA PEHLE OR MURGI PEHLE " but the last few years of our life have helped us to know about " what is life ", let's share a story, it's a real story, few of my clients also may know him, Subir da / 45 + one of our clients was in X bank as a manager, his work experience in the private bank was more than 20 years, he was affected by COVID & that was in the mid-2020, he was covered by his office health insurance ( employer-employee group Mediclaim ) total coverage was less than 10 lakh, he was in planning to buy a family group Mediclaim at 50 of his age. When he was in ICU, we (his wife & I ) realized his  ( employer-employee group Mediclaim ) is not adequate for his current medical expenses. In, this situation we are bound to redeem his investments which Subir da and I had planned for a long-term goals like (children's education, their foreign holiday, retirement plan, etc) , alsa all our effort cant return him from ICU, our misfortune, we lost him. 

This experience has made me realize the fact that due to a lack of realistic ideas and backup, he couldn't sustain the expenses.

After this storm, this family is still surviving but, I know HOW THEY ARE?

here I feel guilty about myself, I should have forced him to buy more health insurance coverage, but in real life, people may think I am keener on my business.

Most people don't know his / her financial value in their family, in financial terminology we called it HLV( Human Life Value ).

So please calculate your HLV it's available on our website https://www.investmentjunctions.com/ or call my team they will guide you to calculate, what is your value,  a single calculation can make your life comfortable & prosperous. through this calculation, you will realize if you need more health insurance or term insurance  & plan according to that.

Raja Bhattacharjee

 Email:  investment.junctions@gmail.com

 Phone: 09830146206

 Office : 09681518774   /  7449858289

 

website: https://www.investmentjunctions.com

This blog is purely for educational purposes and not to be treated as personal advice. 

What is Good loan or Bad Loan ?

 

Good Loans:

 These are kinds of loans used to purchase assets whose value gets appreciated in the future and also generates income. For example, if you are taking a home loan to purchase a house property that has the potential to generate the rental income and also its value get appreciated later. However, these good loans may turn bad sometimes depending on the situation. During the pandemic, rental incomes were irregular, and paying the EMIs became difficult for the house owners.

 Examples: Home Loan, Education Loan, Business Loan. 

Bad Loans: 

These are the kind of loans used to purchase the assets whose value gets depreciated in future and also least possibility to generate the income. One of the best examples is Car loan. Unless having a car is a requirement, you should not purchase it by taking a loan to impress the society.

 Example: Credit card loan, Electronics & White Goods on EMIs, Car Loan, Personal Loan for Holiday.

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Organizing Financial Documents

 

Organizing Financial Documents

Organizing our Financial Life: It's always a great idea to have all the financial documents organized in one place, so that people/families whom we believe, know the facts.

Mistakes People Often Make..

Family is not aware about the investments: 

Most of the time the issues start with these types of mistakes. When your spouse/children are not aware about the investments made by you, there could be multiple reasons for this, you might feel uncomfortable sharing the details, most of the time, it happens to be the case because of a lack of time to spend/sit with the family members to share these financial information details, you need to adjust your schedules/ work-life balance to let them know about the investments and the purpose of those investments.

Random Investments:

It’s a human tendency to forget a few things which you have done in a hurry. Sometimes we invest randomly for the sake of tax deductions or for the sake of our friends (for their target achievements), later we forget those investments. It's not fair to forget your own investments, whether it's random or regular, it's better to note down these kinds of unplanned investments in your dairy or any other file and keep it accessible for your family members or you can upload your all documents in investmentjunctions mobile app .

Scattered Documents: 

Sometimes, it is human behavior to keep the things scattered which are highly important. In Particular, financial documents are not kept in one place. Let’s take an example, gone were the days where, at the time of a new job joining, we were usually allocated with some of the insurance policies out there by the insurance agents /brokers. Here keeping the policy documents safe, is the crucial factor where we generally fail at. It should not be kept scattered. However, nowadays, it's all online. Do remember all the credentials to open your files/ access your accounts.

Reasons for Mistakes 

 It’s not just common for our clients, even we as financial planners, make these kinds of mistakes. Due to your busy work life, we don’t keep our focus much on maintaining things in a disciplined way. The reasons could be,

1. Scattered Transactions: Investments made across physical and digital platforms Within physical platforms, documents are saved in Bank, Office and Home lockers Within digital platforms, made across Demat accounts, Individual MF portals, etc. 

2. Busy & hectic life: With Personal, family & social commitments, people have no time to get organized. 

3. No trustworthy person: Family members and loved ones are trustworthy but when it comes to finances, people are uncomfortable disclosing everything.

Consolidating Documents When we start consolidating the documents, the following are the categories of financial information, in which these documents appear.

● Insurance, 

● Investments, 

● Bank, 

● Loans, 

● Unorganized creditors or debtors and

 ● Other important financial documents.

There wouldn’t be any fulfillment unless you do this consolidation of all financial documents. 

Raja Bhattacharjee

https://www.investmentjunctions.com/

Market Volatility Makes Sense

Market Volatility Makes Sense

SIPs reduce the risk of investing highs,  do remember the fundamental advantage and need for a SIP, which is that it makes you invest, automates that investment, and keeps you building wealth over the years., it is only in equity funds/hybrid aggressive funds that you can turn market volatility to your advantage, by investing on dips and lowering costs, in the absence of that volatility, you get on averaging benefit, in such funds,  do remember the fundamental advantage and need for a SIP, which is that it makes you invest, automates that investment and keeps you building wealth over the years.

For some the focus is the blue line - fall in NAV, for me - it’s the green line - More no of units ..

Generally, most of us focus on falling or rising NAV movements only. But when there is a rise in NAV, if you invest, you will get less number of units, when there is a fall in NAV, you will get more number  of units.

For example, the NAV is 10 rupees and you have invested 1000 rupees, you have got 100 units, after a few days NAV has fallen down to 8 rupees, and now if you invest the same 1000 rupees at 8 rupees NAV, you will get 125 units. The difference is 25 units.

This difference in units makes a lot of difference in the long run. So, when you are focusing on NAV movement, the movement also focuses on units as well.

Raja Bhattacharjee

 Email:  investment.junctions@gmail.com

 Phone: 09830146206

 Office : 09681518774   /  7449858289

 

website: https://www.investmentjunctions.com

This blog is purely for educational purposes and not to be treated as personal advice. Mutual fund investments are subject to market risks, read all scheme-related documents carefully.