Rajiv Singh, email
I am confused about choosing the right insurance, whether it’s health, life, or vehicle. The biggest challenge I am currently facing is comparing and understanding policies. Should I trust agents, reviews, or do my own research?
In the age of information overload, your dilemma is fairly understandable.
Agents can be useful as they simplify policies and help with paperwork and claims. The flip side is that some may push plans with higher commissions or skip key details about inclusions and exclusions. It’s safer to check the policy brochure yourself before choosing.
1 December 2025
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Online reviews should also be looked at carefully. Many are sponsored and app ratings can feel manipulated, but they still help you spot patterns like claim settlement ratios, customer support quality, real user issues and Irdai-related data.
If you have the time and patience, researching on your own can work well. If not, a certified financial planner can step in. They assess your income, expenses, liabilities and existing cover to suggest suitable life, health, vehicle, personal accident and critical illness policies.
Suhel Chander, CFP, Handholding Financials
Anurag Mishra, email
I am 31 and earn Rs 9 lakh annually, have a personal loan of Rs 5 lakh with no savings. I want to clear my debt quickly, build an emergency fund, and start investing in systematic investment plans (SIPs) later. What would be a practical roadmap?
With a monthly income of Rs 75,000 and an estimated equated monthly instalment (EMI) of about Rs 14,000 (for Rs 5 lakh, tenure: 3-5 years), the first step is to follow a steady budget.
Set aside 40 per cent of your income (around Rs 30,000) for living costs. Keep 30 per cent (close to Rs 22,500) for debt and leisure. From this, keep Rs 5,000 for leisure, and add Rs 3,500 to the EMI to reduce interest and close the loan sooner.
Use the remaining 30 per cent (around Rs 22,500) for savings, insurance premiums, or building an emergency fund (aim for six months of income, Rs 4,50,00). Keep this amount in a liquid fund via SIP (recommended), flexi fixed deposit or a separate savings account for easy access.
It’s wise to keep around Rs 1 lakh in a savings account for accessibility and to avoid scammers siphoning off your entire savings.
Once the emergency fund is built, redirect half of this savings amount (half of Rs 22,500) into extra loan repayment, raising your EMI to around Rs 28,750 per month. Invest the remaining Rs 11,250 in SIPs for long-term goals.
When you get a hike, split the extra amount between improving your lifestyle and boosting your savings or investments. Automate EMI payments, emergency fund transfers and SIPs to stay consistent.
Uma S. Chander, CFP® Handholding Financials
Abhinav Kumar, email
I have a term insurance with Rs 5 crore cover, Rs 8,000 monthly premium, and coverage till age 85. After paying premiums for three years, is it practical to change the policy? Is Rs 5 crore sufficient as I have dependant parents?
Changing the policy at this stage may not be practical or beneficial. Insurance decisions depend on health and financial eligibility, which are checked during underwriting.
In three years, your health profile may have changed, which could lead to a higher premium. Unless your current plan allows a rider to increase the cover without additional medical tests, the sum assured usually cannot be changed.
To check if the cover is right for you, the Human Life Value (HLV) method can help. The formula is: Required cover = monthly income × 200. This formula assumes an average return of 6 per cent.
If you earn Rs 1 lakh per month, your ideal cover would be around Rs 2 crore. In the event of your demise, your family can invest the Rs 2 crore at 6 per cent annual return and continue receiving around Rs 1 lakh per month (tax implications not considered).
A Rs 5 crore cover is fine if your income, responsibilities or future goals justify it, especially when your parents depend on you.
Hina Shah, CFP® Financial coach, Luhem²Wealth
