Portfolio Makeover Required

I am 33 yr software engineer in a private company with monthly take-home of 75k. Dependent members are my wife, 4 yr son, mother with plan of one more child in next 2 yrs. Currently we are staying in ancient house. No other liabilities.

Monthly Expenses - 30k

Current position are as follows :

Saving Account - 5L

FD Account - 1L

PPF Account - 2.5L since 2010 as Tax Shield Driver

LIC 1 - New Bima Gold - 18k annum - 2007-2037(20y)+ 10 yr Extension, Cost- 3.6L, SI - 5L, Accident Cover - 5 L

LIC 2 - Jeevan Anand - 12.5 annum - 2007-2032(25y), Cost- 3.1L, SI - 3L, Accident Cover - 3L

LIC 3 - Profit Plus - 10k annum - 2008-28(20y), Cost 50k(5 yrs), SI - 1L

Past Experience:

Bajaj - Capital Unit Gain - premium 15k*3 since 2007, return after 5 yrs - 30k , loss 15k - Surrendered

SBI Magnum Tax Gain - SIP of Rs 2k monthly, period 5 Yrs, return 6% - Stopped

Share - GTL Ltd - 200 @150, Current Price - 30 - hold

Goals : Adequate life and medical cover, Home in next 4 year, Children Education, Children Marriage, Retirement

Questions :

1. Term Insurance premium is available with wide range for same cover, how can we get confidence on these.

2. No good feedback on claims from any medical insured, how to select medical insurance committed on claim.

3. No returns in SIP even after 6-8 years. Past top funds are at the bottom now and current top rated MF were not even in top list before 1-2 year, how can we expect returns from top rated MF for long term.

4. Share Trading is not predictable. What would be actions for middle/long term investors

5. Gold and Property seems like the best investment driver as past records, why should not focus on these for future.

6. Views on Corporate FD - JP Infratech, Surya Roshni, Unitech, Jagatjit Industries

7. Views on mutual fund - Reliance RSF - Equity (G), HDFC Equity Fund (G), Kotak Opportunities Fund (G), Sundaram Select Midcap -RP (G), Kotak Bond (Regular) (G)

8. Your Suggested Fund -

Please council me on my bad experience and suggest the right portfolio with respect to insurance, medical cover and investments to cover short and long term goals.

Thanks and Regards