Buy health insurance before switching jobs

Vikas Dahiya, 31, is a government employee. He lives in Mumbai with his wife Chhavi, who also works for the government, and their 4-year-old daughter Anokhi.
What are they saving for?
The couple wants to save Rs 35 lakh for their daughter's education after 16 years, and another Rs 35 lakh for her marriage after 22 years. They want to create a corpus that will generate Rs 36 lakh per annum during their retirement years.The couple aims to go on a foreign trip.
The above costs will revised based on inflation.
Where are they today?
Cash flow: The couple's total monthly inflow from all sources is Rs 2.48 lakh. Their total monthly outflow is Rs 1.06 lakh. The outflow consists of routine household expenses, insurance premium and EMI on a house currently given on rent. They are living in an employer-provided accommodation. About 9% of the inflow is consumed in servicing the home loan.
Net worth: The couple's total assets are worth Rs 1.02 crore. These includes cash and near cash worth Rs 3.50 lakh, invested assets worth Rs 93.65 lakh and personal assets worth Rs 5.70 lakh. Invested assets include the house on rent. However, when they start living in it at a future date, it will not generate any rental income. There is an outstanding home loan of Rs 18 lakh, which is about 17.5% of assets.
Contingency fund: The couple's balance in savings bank account, FDs (of less than a year) and cash and near cash amount to Rs 3.50 lakh, against the mandatory monthly expenses of Rs 77,000. This is approximately 4.5 months' reserve.
Health & life insurance: Vikas' employer covers all health-related expenses of the family. His life insurance cover is Rs 70 lakh.
Savings & investments: In addition to the Rs 3.50 lakh in cash and near cash, the couple's invested assets include equity mutual funds worth Rs 60,000, direct equity Rs 25,000, bonds Rs 80,000, EPF/PPF Rs 12 lakh and real estate worth Rs 80 lakh.
Fiscal analysis
The couple is saving 71% of the gross annual inflow. This is an extremely healthy rate. Their contingency fund is a little higher then required, while borrowing is well within permissible limits. If Vikas decides to leave his government service, he should obtain an independent health cover. His life cover needs enhancement too. Currently, the couple's overall assets are skewed in favour of real estate. However, this is natural considering they have just begun their lives and, hence, purchase of a home was their first goal.
The way ahead
Contingency fund: The couple should maintain a contingency reserve of Rs 2.30 lakh. Out of this, Rs 25,000 can be held as cash in hand and the balance in an FD linked to a savings bank account.
Health & life cover: In the event of leaving their government service, the couple should purchase a health cover of Rs 5 lakh for each member of the family and also top this up with another Rs 20-lakh floater policy.
Vikas should enhance his life cover to Rs 1 crore by way of a term plan in the next three-four years.
Planning for financial goals
Daughter's education: The couple must start investing Rs 15,000 via an SIP in a large-cap equity mutual fund and increase this by 10% every year.
Daughter's marriage: They can start another SIP of Rs 10,000 in a large-cap fund and Rs 5,000 in a gold fund to build a corpus for their daughter's marriage. This should also be increased by 10% every year.
Retirement planning: In order to save for retirement, the couple should start investing by way of SIPs in index mutual funds. Also, their contributing regularly to EPF/PPF will help to save for this goal.
Foreign travel: The couple can consider this goal after they have paid off their existing home loan.