Got 30 lacs in insurance claim – How to invest it for my children future ? Help !

POSTED BY ali ON September 17, 2013 12:16 pm COMMENTS (8)

Sir, I’m 26 year old female. I have two children age 9 years. I’m working in a private school as a teacher. My husband has died recently in a road accident .I have received Rs 3000000 thirty lac rupees insurance claim.

we have no other assets. My worry is all about for my children education and future. I dont know investment ways. I request you suggest me a good secured portfolio. I was heard FD s also not secured if we fix lump-sum or spread in two or three banks.I’m waiting for your valuable reply ASAP.
Thank u

8 replies on this article “Got 30 lacs in insurance claim – How to invest it for my children future ? Help !”

  1. JP says:

    You wanted solutions for long term education + future safety.

    1. I support the point Term Insurance Policy around 1000 per month for giving 30-40 lakh sum assured. This will ensure your future earnings are assured to your children.

    2. Find out an almost right figure on education amount of children after x years. I am taking it as 10 year for first child & 10 lakh for education.

    2. I prefer the 20 lakhs to be FD with 2 different banks. Do not opt the monthly income plan as there is higher chance of spending. Place in 2 different banks & for long term like 8 years, you will get it doubled.

    The first FD will be doubled in 10 years & you can use half of it for education of first child. (10 Lakhs) The remaining 10 Lakh + other 10 lakh, should yield around another 5 lakh & 10 lakh respectively, to take care of your next child’s education.

    3. The 10 lakh out of 30 lakh, can be put on real estate, you can buy a good land & show the FD’s to get home loan. Make the ground foundation strong that you can build one more storey after 10 years. Once completing the home loan in 10-15 years, you can build one more storey after that. This will ensure future income additional to your pension.

    4. Next important thing is find a trustable person in your family or friend & confirm the decision. Make him/her aware of the same so that in future, if you are not there too, the children will be guided correctly.

    5. Read books of Manish Chauhan OR sort of Rich Dad Poor Dad to understand the fundamentals of investing. Life is now asking you to learn this. You should understand Timing & Time value of investments. Also, teach your children the same.

    6. Add online periodic reminders for your decisions, else you might forget the initial plan. 🙂

    All the Best.

  2. ashalanshu says:

    Dear Tayyaba, Please go ahead with 15 FDs. The logic I can understand – in case of need, you w’d breal only 1 or 2 FD & not all.



  3. TAYYABA says:

    Thank you manish jee…
    I have a doubt regarding FDs. Is FDs are secure? please give a clarity.
    I want to open FDs in 3 different banks spred as each FD Rs200000.i.e 30 lac divided 15 FDs. intrest will receive monthly.Intrest income will spread as
    1.want to open a PPF account with Rs5000 monthly.
    2.Rs5000 Invest in MF long term in SIP mode.
    3.Rs10000 monthly expenses till my children settled well.
    Manish sir is my above investment options are correct? If no clarify me.
    Thank you

    1. Yes FD’s are 100% safe, provided they are in BANKS and not corporate FD’s . Also why do you want to have 15 FD’s of 2 lacs each ? That will be too much . Better have 3 FD of 10 lacs each . Thats all .

  4. Hi Tayyaba

    Here is what you should do

    1. Take a 50 lacs to 1 crore of term plan from some company. It should cost you only Rs 7,500 – 8,000 per year.

    2. As you are a teacher, you must be earning some amount which must be sufficient for your monthly requirement. But now you should focus on two things , like another stream of income and some investments for long term

    3. You should invest 20 lacs in a FD , which will give you around 15,000 monthly income , now you can either use it if required, but my suggestion is that if not, then please invest this amount per month in mutual funds for your children long term goals like education and marriage etc.

    4. Rest 10 lacs better do a FD for long term like 3-5 yrs , and keep renewing it later. This will grow to 20-25 lacs in next 10-15 yrs.

    Let me know your comments on this suggestions for now ?


  5. Viren Phansalkar says:

    First thing first, do you have life insurance? Ideally term plan.
    Explore this amount to come to a figure for sum assured.

    1. TAYYABA says:

      viren jee,i have 15 lac term cover with kotak term insurance plan.

      1. Viren Phansalkar says:

        Please upgrade it as suggested by Manish or based on your own calculations (explore this site or google it to come to your own sum assured figure)

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