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The Japanese eat very little fat and suffer fewer The Japanese eat very little fat and suffer fewer heart attacks than the British or Americans.heart attacks than the British or Americans.On the other hand, the French eat a lot of fat On the other hand, the French eat a lot of fat and also suffer fewer heart attacks than the and also suffer fewer heart attacks than the British or Americans.British or Americans.

The Chinese drink very little red wine and The Chinese drink very little red wine and suffer fewer heart attacks than the British or suffer fewer heart attacks than the British or Americans.Americans.

The Italians drink excessive amounts of red The Italians drink excessive amounts of red wine and also suffer fewer heart attacks than wine and also suffer fewer heart attacks than the British or Americans.the British or Americans.

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Conclusion:

Eat & drink what you like.

“ It's English that kills you ”.

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FINANCIAL PLANNING

PROFIT PLAN LOSS PLAN

– all kind of insurance

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I N S U R A N C E

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***Insurance in broad terms may be described ***Insurance in broad terms may be described as a method of sharing financial losses of as a method of sharing financial losses of few from a common fund who are equally few from a common fund who are equally exposed to the same loss.exposed to the same loss.

***Insurance is concerned with protection of ***Insurance is concerned with protection of economic value of assets. Tangible assets economic value of assets. Tangible assets are human beings, house, furniture, motor are human beings, house, furniture, motor cycle etc. Intangible assets are liabilitiescycle etc. Intangible assets are liabilities

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INSURANCE

Tool for asset protection Social security tool Tax efficient investment

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Classes of Insurance

A. Life insurance

B. General insurance

General insurance is further classified:-

1. Health Insurance

2.Vehicle Insurance

3.Miscellaneous insurance

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Miscellaneous Insurances:-

1.Fire insurance

2.Marine insurance

3.Householders insurance

4.Shopkeepers insurance

5.Engineering insurances

etc.

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LIFE INSURANCE

Is the “BOND” a man gives , so that when he dies, he will not be a defaulter

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Lets take some examples to understand how insurance actually works:

Example

Houses in a village = 1000 Value of 1 House = Rs. 40,000/- Houses burning in a yr = 5 Total annual loss due to fire = Rs. 2,00,000/- Contribution of each house owner = Rs. 300/- SUPPOSE

UNDERLYING ASSUMPTION

All 1000 house owners are exposed to a common risk, i.e. fire

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Planning an Insurance Program

To put your risk management plan to work ask yourself… What should be insured? For how much? What kind of insurance? From whom?

Set your insurance goals and prioritize them.

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Your age and number of dependents Your annual income and annual expenses Your outstanding liabilities like home loan, car

loan, etc. Your investments / savings Your lifestyle expenses

Monies you would require in futureAttachment

How much insurance do I need?

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Fundamental Principles of Insurance

1. Insurable interest- Means financial interest

Husband-Wife Parent-Children Business Partner Creditor- Debtor Etc.

*****Speculative Risks are not Insurable”-

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2.Utmost good faith-

Greater duties of faith on proposer & insurer

3.Indemnity-

Actual compensation of loss. not applicable in life policies

4.Contribution- Sharing of loss by all insurers. Not applicable in life policies.

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Basic Life Insurance Policies

Term Policy / Premium Back Provides death cover only

during policy period Premium is low No refund of premium Sum assured paid on death

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Endowment Assurance Plan

Covers death & survival benefits Sum assured paid on death or on maturity Period of policy at the option of proposer Most common plan

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Money Back Policy

Available for different periods Covers death & survival benefits Lump sum paid periodically Full sum assured paid on death

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Annuity (Pension) Plans

These are pension plans Immediate annuity or deferred annuity starts

at specified age periodically Single premium paid for immediate annuity Premium in installments paid for deferred

annuity Life cover simultaneously

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Unit Linked Insurance Policies (ULIP)

Each premium split into units and risk

premium for life cover Units are priced as per current

market value Sum assured & current value of units paid on

death as per policy condition Current value of units paid on maturity

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Continued…………..

Partial withdrawal

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Important aspects of Life Insurance Policies

Policies available for limited period premium payment & risk for longer policy period

Premium can be paid in monthly, quarterly, half yearly, yearly installments

Reward for healthy Life Style

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Continued…………..

Policies available with bonus or without bonus Death due to accidents can be covered for

additional S.A. Policies available exclusively for women & children Additional cover for major diseases available Guaranteed bonus policies available Single premium, Limited Pay or Regular Premium

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Continued…………..

Loans are available on policies Lapsed policies can be revived Policy can be surrendered after Five years Nomination & assignment can be done

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RIDERS

Accidental Death & Disability Critical Illness Rider Waiver Of Premium Surgical Care Hospital care

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Terminologies………………….

Free-Look Period Grace Period Surrender Fore close Top-Up

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THANK YOU