How To Arrange 25 LAKHS for MEDICAL COSTS?! | Money Matters Ep. 87 | Ankur Warikoo Hindi

"Because there is a concept of PED or Pre-Existing Disease. The concept of end pre-existing disease is that some PEDs that do occur are not covered at all. But some start getting covered after some time. So first of all you have to find out whether the condition your wife has, which is a pre-existing disease in PED insurance terms, is there any insurance policy which can cover this disease after a waiting period or not. This should be your first focus."

"Whenever an insurance claim comes, whether it comes after 1 year or 2 years, the insurance company will quite likely try to check when the disease was diagnosed. And if it is proved that this disease was diagnosed before your top-up or before you took the insurance, then they have every right to reject that claim."

"So when the money was really needed, I would have added ₹25 lakhs but it would have reduced to maybe 18 or 20 lakhs. There is no benefit in that. So you have to be very very certain. And if there is any viewer who is not only going through such a condition but also knows that a planned investment is going to be made in three, four, five years, then never invest it in the same way as you make a long term investment which can be of 10, 20 years."

"You will invest 50% in a debt mutual fund and since you have a three-year time horizon, you can invest it in a debt fund that will give a much better rate than an FD. So if the FD rate is 6.5%, you would like to get 8% without taking any risk, that is also great. So in this case, I am going to Coinpay, which is the mutual fund platform of Zerodha, and I am putting it in its dept section. ICICI Prudential Short Term Fund This in the last one year has given a rate of return of 8.81% and is near fixed. Then we will take a little more risk. 25% will be invested in another debt mutual fund. But this debt mutual fund will be a corporate bond fund. So these usually give better returns. So to give you another sense if I go by corporate bonds which is the biggest one. I am showing the biggest one, which one is it? HDFC has a corporate bond fund which has given 8.11% in the last 1 year. So 25% of that and then the remaining 25% because there is a period of three to five years. You can take the bare minimum risk that you can take in the stock market. Nifty 50 Index Mutual Funds."

"So they see how much you will have to invest every month so that you have ₹25 lakh in 5 years and that number, if I look at it, is approximately ₹40000 per month. If you invest ₹40000 per month in a SIP in this ratio for the next 5 years and it gives you a blended return of 10% and you are able to increase this ₹40000 by 5% every year, then after 5 years you will have ₹25 lakh."

"So please keep this ₹1 lakh as your emergency fund. Please don't spend it. Don't invest it anywhere. You must have this much money with you at all times. Because you have a monthly expense of ₹20000. So, if God forbid something happens that suddenly requires a lot of money, then you should not take another loan, to avoid that this ₹1 lakh is your emergency fund."

"But please see if there is any other government hospital where you can get this treatment done because you have the insurance that will cover you. So whatever time you have, analyse it because there are many government hospitals which are specialized and provide good services and it is not necessary that they are only in Delhi. They are spread across every corner of the country."