Wealth protection

1. Wealth protection

2. Wealth Protection: Why Wealth Protection: What Wealth Protection: How Wealth protection 2

3. How do you define “wealth”? Basic principles to maintain sustainable wealth Technical analysis of risk impacts to wealth Risk management method How do you handle your risk? Conclusion of maintaining sustainable wealth 1. Wealth Protection: Why 3

4. All wealth come from “you” 1.How do you define “wealth”? 4

5. . 1. How do we define wealth • Using financial ratios to check: Survival ratio and wealth ratio • Financial Freedom 5

6. Unexpected events occur to the assets Obstacle to achieve financial goal Retirement Planning: How to retire with happiness via Financial freedom without being burden to others Financial Loss Wealth Subside Risk Protection Wealth Protection 6

7. Insurance Planning Planning to protection against possible financial loss from assets Assets are human assets and non-life assets Human assets are the one who earns income create wealth. Non-life assets such as house, automobile etc., Wealth Protection 7

8. Tangible Asset Tangible Asset Human Asset Intangible Asset Financial Asset Intangible Asset Financial Asset 8

9. Analysis technique the effect of calamity to wealth National Disaster Financial Disaster Man-made Disaster 9

10. Analysis technique the effect of calamity to wealth 10

11. Step 1 Evaluate chance and impacts to the financial impacts (wealth) Risk Management Technique 11

12. Step 2 Choose Appropriate Risk Management Method Risk avoidance Risk reduction Risk assumption Risk shifting Risk Management Technique 12

13. Step 3 Evaluate Risk Management Method to Apply Risk Management Technique 13

14. Various situations that might have impacts on assets 14

15. Remember wealth come from you. Remember four important principles for sustainable wealth Wealth Creation Wealth Protection Wealth Accumulation Wealth Distribution Remember start protection with “Human Asset” Remember the best of risk shifting is “Insurance” Conclusion of maintaining sustainable wealth 15

16. How insurance can be wealth protection Get to Know “Life insurance” Life insurance for tax deduction purpose 2. Wealth Protection: How? 16

17. How insurance can be wealth protection Retirement Income Protection Business Protection Children Education Disability Medical Expenditure Life Assurance Policy Family Income Insurance Premium Investment Dividends Compensation Endowment 17

18. Basic Classification of Life Insurance 2 Types - With dividend - With non-dividend 3 Kinds - Individual สามัญ - Industry - Group 4 Natures - Term: an insured who has high risk or debt - Whole life : an insured who want to set up will or for the last debt - Saving : an insured who want to save money or educational fund - Annuity: an insured who want to have some earning while disability Get to Know “Life insurance” 18

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21. Remember wealth come from you. Remember four important principles for sustainable wealth Wealth Creation Wealth Protection Wealth Accumulation Wealth Distribution Remember start protection with “Human Asset” Remember the best of risk shifting is “Insurance” Conclusion of maintaining sustainable wealth Conclusion of maintaining sustainable wealth 21

22. Universal life insurance A combination of term life and whole life insurance. If the insured dies, the death benefit is not less than the face value. Premiums collected after net from expenses, insured fee and investment fee will be accumulated in each of the insured’s account. Amount in each insured’s account will be invested. Return will be paid back to each of the insured’s account at the end of the period. Other types of non-life insurance 22

23. 2. Unit - Linked If the insured dies, the death benefit is not less than the face value, which is not very high. Premiums collected will be deducted with expenses. Amount in each insured’s account will be invested within 3 days. Return will be paid back to each of the insured’s account at the end of the period. Assessment is based on NAV Other types of non-life insurance (cont.) 23

24. Comparison 24

25. Comparison (2) 25

26. Main policy Rider Note to the contract Composition of Life Insurance 26

27. When purchasing life insurance, think of Main Policy first. For death benefits: Specific period type…. Protection focus Whole life type…. Heritage focus For death / maturity benefits: Saving Type …….. Saving focus Pension type……. Spending after retirement focus Composition of Life Insurance (2) 27

28. Impacts which might happen to life: Death - Medical expense - Final life expense - Education expense for the children - Liabilities burden - Family expense Accident & illness Medical expense Human Asset: How to protect sufficiently? 28

29. Better protection with Rider Compensation for disability Compensation for inpatient Medical and surgery expenses Serious illness protection Premium payment protection Individual accident protection Composition of Life Insurance (3) 29

30. Premium is the deductable expense for calculation on tax payment Tax benefit 30

31. Human Asset: How to protect this sufficiently? Non-Life Asset: How to protect this sufficiently? Conclusion on sufficient wealth protection rules Wealth Protection: How ? 31

32. Impacts which might happen to life: Death - Medical expense - Final life expense - Education expense for the children - Liabilities burden - Family expense Accident & illness Medical expense Human Asset: How to protect sufficiently? 32

33. Disability - Medical expense - Education expense for the children - Liabilities burden - Family expense Human Asset: How to protect this sufficiently? (2) 33

34. Family or dependant’s expenses Revenue protection from disability due to illness or accident Liability protection Family revenue protection during transition period Health protection Asset protection Determinants on the insured amount 34

35. Non-Life Asset Tangible asset Intangible asset Financial asset Non-Life Asset: How to protect it sufficiently? Loss on tangible asset Loss on Intangible asst Loss on financial asset 35

36. Insurance for Non-Life Asset Loss Casualty Automobile Marine Miscellaneous Personal accident Travel Income protection Asset Risk taking activities unemployment Health Professional indemnity Theft 36

37. Home and personal property fire insurance includes: Single house, town house, semi-detached house, commercial building, garage and sub-building such as kitchen etc., fence, door, expansion unit, apartment, codominium etc. Non-Life Asset (cont.) 37

38. Protection includes: Furniture, decoration, build-in, home appliance, electricity appliance and instrument, musical instrument, sound instrument, kitchen appliance, clothes and other assets for living of the beneficiary or dweller. Non-Life Asset (cont.2) 38

39. 1. Major life impacts - Unexpected death - Disability due to illness or accident - Health problem 2. Better wealth protection - Life insurance + Rider 3. Required insured amount = PV of total future income 4. Insurance can help maintain or increase wealth. 5. Important non-life asset should also be protected Conclusion on wealth protection rules 39