Life Insurance Life insurance is a type of insurance that provides financial aid to nominee/beneficiaries in case of death or critical illness of policyholder. Life insurance does not provide financial aid for the loss of life. Life cannot be measured in terms of money. Companies provide insurance based on the earning capacity of the policyholder. How much Life Insurance do you need? We will discuss two methods: Thumb rule Need based Analysis Determining life insurance based on thumb rule Life insurance should be 10 times your yearly income and child’s education expenses. For example: If your monthly income is Rs.

Debt can ruin your finances easily if you don’t deal with it properly. Understanding different types of loan and its impact on your finance is necessary. In this article, we will discuss good loan and bad loans and the different loan repayment and prepayment strategy. Good Loans These concepts are developed based on the characteristics of the loan. If a loan has a lower interest rate and tax benefits are also available, such loans are considered as good loans. For example Home loan. Bad Loan A loan with higher interest rates like personal loans, credit cards are considered as bad

In your personal finance journey, almost all the task will be one time like selecting insurance policy, tax planning, defining goals and needs monitoring once a year. But your portfolio should be monitored quarterly or even monthly. Once you decide your financial goal and you ready to invest, you should look for an asset allocation process. Investing in only one asset class can ruin your portfolio. Goal portfolio management is totally different from return based portfolio management Goal-based portfolio management involves: Reviewing financial goals Review past returns and comparing with current investment returns Any goals that can be achieved early?