The Securities and Exchange Board of India (SEBI) has introduced a comprehensive Financial Health Check quiz to help individuals evaluate their financial well-being beyond regular salary income. According to reports from Mint, the quiz covers critical areas including insurance coverage, debt management, emergency savings, and retirement planning to provide a holistic assessment of financial health. The tool is designed to help users identify practical improvements needed in their financial habits and provide actionable recommendations for better financial management.
The quiz begins by assessing whether anyone depends on the individual's income, then checks if life insurance coverage is adequate. As reported by Mint, the quiz recommends life insurance coverage of 15 to 20 times annual income, with approval given for meeting this requirement. For those without sufficient wealth, the quiz suggests term insurance with dependents named as nominees. The assessment also covers health insurance, recommending a minimum of ₹5 lakh or half annual income, whichever is higher, with approval given for both personal and employer coverage.
The quiz addresses credit card management, recommending full and punctual payment before due dates for approval. According to Mint, frequent shortfalls prompt stronger advice to return the card and seek professional debt guidance, with warnings about annual interest rates of around 40% on outstanding dues. For personal or unsecured loans, having none receives approval, while existing loans are recommended for quick clearance due to high interest rates. The assessment also covers emergency savings, recommending at least 6 months of expenses in accessible savings for unexpected costs.
The quiz evaluates retirement planning through SEBI's financial goal planner to calculate required savings. As reported by Mint, adequate retirement investing receives approval, while those behind on planning are advised to start with discipline. The assessment also covers budgeting habits, recommending monthly limits for needs and wants with optional spending within defined limits. For investment transparency, the quiz advises sharing investment details with family members and adding registered investment adviser contact information.
The quiz emphasizes the importance of legal documentation, recommending that families know investment details and have prepared wills. According to Mint, the assessment advises adding missing nominations and informing nominees, with recommendations to keep nominees aligned with those named to inherit assets. The tool provides specific guidance on will preparation and nominee management to ensure proper estate planning and asset distribution.
