9,580.3090.2
Stock Analysis, IPO, Mutual Funds, Bonds & More

Can I buy insurance, open a PPF account in the name of my 40-year-old specially-abled brother?

You can buy a life insurance policy for your brother only if you have an 'insurable interest' in it. You can make him a nominee for a new / existing non-term policy so that he can receive the maturity proceeds or the death benefit in due course

ET CONTRIBUTORS|
Last Updated: Apr 06, 2020, 12.10 PM IST
0Comments
Getty Images
ppfinsurandby

If your specially-abled brother is unable to sign the form, you can open a PPF account.

ET Calculator Banner
I have a 40-year-old specially-abled brother. He has no source of income. Can I open a PPF account in his name? Can I also save some money for him and buy insurance policies that might help in his old age?
Jayant R. Pai CFP and Head - Products, PPFAS Mutual Fund
replies: A PPF account can be opened in his name, with your assistance. If he is unable to sign the form, you will require a Power of Attorney, authorising you to act on his behalf. The same procedure will apply in case of other investments too. You could make him a nominee in a few of your investments. This will help him in case you pre-decease him. You can buy a life insurance policy for your brother only if you have an 'insurable interest' in it. You must prove that the loss of your brother's life will affect you financially. You can make him a nominee for a new / existing non-term policy so that he can receive the maturity proceeds or the death benefit in due course

I am 44 and have a 6-year old daughter. I plan to work for the next 14-15 years. Which funds should I invest in for my child’s education and marriage and my retirement? I have a family floater policy of Rs 5 lakh, mutual fund investments worth a few lakhs and some FDs.
Vidya Bala, Co-Founder, PrimeInvestor.in
replies: Your quantum of investment will depend on your surplus every month and a ballpark figure of how much you want for each goal. Use any online calculator to arrive at this figure with 4-5% inflation assumption. Since you already have some mutual funds, pick the ones that have been consistently performing well and make sure you allocate each fund to a specific goal. Go with a 60-75% allocation for your retirement and about 60-70% for your daughter. Use a combination of multi-cap, mid-cap and index funds for equity and some short duration funds and FDs for debt. Up your medical cover by at least 3 times.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

Also Read

Renewal date for health insurance policies extended but will you be insured in this period?

Employees State Insurance Corporation extends deadline for filing insurance contribution

Reliance General Insurance launches coronavirus protection insurance cover

Insurers not to cancel fire hazard coverage

Crop insurers may not get swarmed with locust claims

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service