Naveen Ojha, email
I recently got married, and my wife and I have individual health insurance policies with different insurers. I am covered for Rs 5 lakh, and my wife for Rs 3 lakh. Should we continue with our standalone policies or convert them into a family floater? What should be the ideal sum insured for a 30-year-old couple with no major health issues?
A floater policy combines coverage for family members under a single sum insured, making it more cost-effective and convenient than individual policies. However, individual plans ensure full coverage for each person, even if one policy is exhausted. Considering the rising medical inflation, you should aim for adequate coverage.
Switching to a floater policy simplifies management but could leave you underinsured if claims exceed the shared sum insured.
Alternatively, retain individual policies but enhance their coverage. You may also consider opting for a floater-based top-up policy, offering higher coverage at a lower premium. Top-up plans activate once a deductible is crossed, providing additional financial security.
Radha Mishra, email
I’m 26, working as a consultant, and covered under my father’s government company group health insurance. Should I buy a separate health cover?
While your father’s group health insurance provides basic protection, it’s wise to get a separate health policy. With medical inflation at 12 per cent annually, an individual plan ensures comprehensive coverage for unforeseen expenses.
Buying early locks in lower premiums and starts the waiting period for pre-existing conditions, securing long-term benefits. Consider a base health policy or a top-up plan to enhance your existing group coverage at a minimal cost.
Niharika Singh, Executive Director, Marketing, IFFCO Tokio General Insurance Company Limited
Shruti Saxena, email
I use digital payments for daily expenses but often overspend and lose track. How can I budget and manage my finances smartly?
Create a budget listing of fixed expenses (rent, utilities) and discretionary spending (entertainment, shopping). Use apps like Walnut or Monefy to track expenses or maintain an Excel sheet.
Automate savings by transferring a fixed amount to a savings account at the start of the month. Set spending limits on payment apps and configure alerts. Following the 50/30/20 rule can also help: 50 per cent for needs, 30 per cent for wants, and 20 per cent for savings and debt repayment.
Bhavit Goel, email
I’m 21, working as a software consultant, and want to start investing in stocks. Should I invest directly or start with mutual funds? How can I improve my stock market knowledge?
Starting early is excellent for leveraging compounding. Begin with equity mutual funds (MFs) rather than individual stocks. These funds are managed by professionals and provide diversification, reducing risk. Investing in a systematic investment plan (SIP) of MFs is a great way to start investing.
To build knowledge, read beginner-friendly books like The Intelligent Investor. Explore free courses on stock markets offered by Indian platforms and follow financial news.
Col. Sanjeev Govila (Retd.), CFP, CEO, Hum Fauji Initiatives