:: SEBI Investor | Investment and Insurance Calculator for an Individual with Kids ::

Investment and Insurance Calculator for an Individual with Kids

# Particulars

Monthly income your family will need to meet expenses in your absence

How long would this income be needed
Note: If spouse is unemployed but can work choose a comfortable no of years. You could also decrease the monthly income needed a little
If spouse is uneducated this will be for likely lifetime of spouse or your parents.
If spouse is employed and can manage independently its upto you

Annual Inflation in monthly expenses (%)
Note: monthly income will increase annually at this rate (inflation-indexed income)

Return expected when part of the insurance sum is invested to meet expenses (%)

Current life insurance cover
Note: If you are going surrender policies or make paid up don’t include them, do them disclose to the insurer

Assets your family can use to generate some income. Don’t include anything you don’t want them sell
Note: Don’t include anything you don’t want them sell

Current liabilities (personal loan, credit card debt). If you have separate cover for home loan you don’t need to include that
Note: If you have separate cover for home loan you don’t need to include that

# Provide for your childrens schooling

Annual amount needed for your first childs school education

Inflation rate on this amount (%)

Years you will need this amount for (until child enters 12th grade)
Note: So child enters college 1 year later. Enter this carefully as it will influence the college fund goal

Annual amount needed for your second childs school education
Note: Set zero if not relevant

Inflation rate on this amount (%)

Years you will need this amount for (until child enters 12th grade)
Note: So child enters college 1 year later. Enter this carefully as it will influence the college fund goal

Return expected if part of the insurance sum is invested to meet school expenses (%)

# Provide for your childrens college education

Amount needed for first child's college expenses (current amt)
Note: Set zero if not relevant

Amount needed for second child's college expenses (current amt)
Note: Set zero if not relevant

inflation rate on this amount (use at least 10%) (%)

Return expected if part of the insurance sum is invested to meet college expenses (%)

# Provide for your childrens marriage
Note: insurance will be calculated with and wihout incl. marriage expenses

Amount needed for first child's marriage (current amt)
Note: Set zero if not relevant

No of years to goal

Amount needed for second child's marriage (current amt)
Note: Set zero if not relevant

No of years to goal

inflation rate on this amount (use at least 10%) (%)

Return expected if part of the insurance sum is invested to meet marriage expenses (%)

Note: Please create a Will incorporating an action plan like this.

(A) Sum required to generate an inflation indexed monthly income
Action Plan: to be invested to provided annual interest at beginning of each year

(B) Sum required to clear your liabilities
Action Plan: to be cleared immediately

(C) Sum required to meet inflation indexed school expenses for children
Action Plan: to be invested to provided annual interest at beginning of each year

(D) Sum to be invested for first childs college education
Action Plan: to be invested in a mix of equity and debt to get a corpus for college fees

(E) Sum to be invested for second childs college education
Action Plan: to be invested in a mix of equity and debt to get a corpus for college fees

(F) Sum to be invested for first childs marriage
Action Plan: to be invested in a mix of equity and debt to get a corpus for marriage

(G) Sum to be invested for second child's marriage
Action Plan: to be invested in a mix of equity and debt to get a corpus for marriage

(H) Usable assets will be subtracted from sum of above two quantities
Action Plan: to be liquidated immediately

(I) Existing insurance amount

So net insurance required (A + B + C + D + E + F + G - H - I) in Lakhs

or net insurance excluding both childrens marriage expenses

or net insurance excluding 1st childs marriage expenses

or net insurance excluding 2nd childs marriage expenses

Disclaimer:

Please note that these calculators are for illustrations only and do not represent actual returns.
Stock Market does not have a fixed rate of return and it is not possible to predict the rate of return.