Net Worth Example

Here is calculation for one Mr Vijay Kumar, aged 30 years,earning Rs 8 lacs p.a., having 4.80 lacs p.a. as household expenses. He wants to ensure Rs 40000 p.m.(4.80 lacs p.a.), increasing by 4% p.a. to fight inflation, for his family till his age 55. He has savings of 10 lacs and is already insured for 15 lacs. The table shows that the family needs a capital of 73.77 lacs invested @ 9% to achieve this goal, in the case of loss of his life. 
As he has a provision of  25 lacs ONLY ( 10+15 lacs ), he immediately needs insurance of 49 lacs to safe guard his family.
The following chart shows beautifully that the capital of 73.77 lacs can produce annual income of 4,80,000 ( 40000 monthly ) for next 25 years, increasing by 4% per year to take into account inflation factor. It is interesting to note that a family which needs 4,80,000 in 2016, will need 12,79,601 in 2041 to maintain same standards due to cost rise of only 4% p.a. 
IF YOU WANT THIS CHART FOR YOU, FOR YOUR INDIVIDUAL USE, WITH YOUR FIGURES, PLEASE SUBMIT YOUR DATA IN THE FORM ON NEXT PAGE.
     

fund_need.pdf


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