FINANCIAL PLANNING IN INSURANCE MADE EASY

1. << U$IN $ENCE >> FINANCIAL PLANNING IN INSURANCE MADE EASY By Pg Hj Abd Rahman bin PDPH Jaludin Senior Insurance Planner Representing American International Assurance Co Ltd Information provided in this presentation is correct as at 10th March 2005 1

2. Disclaimer Ideas shared in this presentation is understood to be used at the discretion of the employee. While every effort has been made to present a constructive financial plan, we will not be liable for any monetary, physical or emotional claims or whatever for any wrong use. 2

3. AGENDA Why People Need Financial Planning ? 5 Steps of Financial Planning in Insurance Two Major Benefits of Insurance Reasons for Financial Planning 3

4. What Is Financial Planning ? Saving Aside Your Money For A Certain Good Priority For Your Future Needs 5

5. $ Why People Need Financial Planning ? Goal in future Shortfall Now Procrastination Now Then 6

6. How Financial Planning Works Identify goals / Needs Monitor Progress Gather Data Information Design / Recommend Action Plan Implement Action Plan 7

7. Financial Planning Tools • There are a number of ways to do Financial Planning: • Saving in TAP • Buy Shares and Stocks • Fixed Deposits • Conventional saving in the bank • Buy lottery / 4D • Insurance 8

8. INSURANCE one of the safest and cheapest tools for financial planning 9

9. INSURANCE Create and Save $100,000 = $100 Asset Savings 10

10. Using Insurance To Do Financial Planning OBJECTIVE 11

11. Need to understand WHAT & HOWInsurance can do for us ? 12

12. Two Major Benefits of Insurance Living Needs Beneficiary’s Needs 13

13. LivingNeeds Food Clothing Health Water , Electricity, Phone Bills Shelter Education for your children Car Entertainment ( Cinemas, outing, traveling etc… ) 14

14. Total Permanent Disability Income ( Living Needs) • May result a person to lose his/her Income and could not engaged to any kind of occupation. • Your needs, dependent, liabilities and other expenses. • Being disable is not cheap. It can become more expensive. • Can you afford, if this happen ? 15

15. No Income Expenses Cut Down 16

16. Portrayal of a Man or Husband 17

17. Do you want to be Financially Independent even at your worst time? Total Permanent Disability Income ( Living Needs ) If yes, then through insurance planning can help you be financially independent 18

18. Critical Illness Fund( Living Needs ) Treatment Costs of Critical Illness Cardiovascular diseases Heart attack $5 k to 15 k Coronary Bypass Surgery $30 k Valvular Surgery $30 k to 50 k PTCA $15 k 19

19. Critical Illness Fund( Living Needs ) Treatment Costs of Critical Illness Cancer Treatment costs Surgery $15 k to 25 k Radiotherapy $20 k Chemotherapy $20 k to 100 k 20

20. Critical Illness Fund( Living Needs ) Treatment Costs of Critical Illness Kidney Dialysis $2000 per month 21

21. Critical Illness Fund( Living Needs ) • Medical Cost can be very Expensive. • It can wipe off our hard earn money in the bank. • Can you name anyone in your family, who could support you financially ? BILLS 22

22. Critical Illness Fund( Living Needs ) With modern technologies nowadays, You may survive your illness, but without insurance planning, You may be dead financially !!! 23

23. Hospital Bills( Living Needs ) • Other Illness ( not Critical ) • Admitted few days • Money ! ( First Class Ward / Food expenses / Time ) • Hidden Costs 24

24. Hospital Bills( Living Needs ) Would you like insurance to reimburse back your money & time that you’ve lost ? 25

25. Education Fund for Children( Living Needs ) • Have you started planning for their future ? • Do you know how much you would need ? • How would you like to send your children without having to loan from the bank ? 26

26. Education Fund for Children( Living Needs ) Through Saving in Insurance, even in the event of Premature Death, Total Permanent Disability or Diagnosed for a Critical illness, Your Dream of Saving for your Child Education is Continued 27

27. CapitalAccumulation Through Insurance, You Can Do Investment and at the same time provide Income Protection For your Family 28

28. Capital Accumulation(Many Reasons) • Retirement Fund • Business Capital • Purchase or build your dream house • Children’s Education Fund • Wedding Fund etc…. 30

29. Beneficiary’s Needs Living Expenses – Spouse, Children & Parents ( Food / Clothing / School Fees / Maid’s Salary / Hire purchase etc… ) & Outstanding Bills – Liabilities ( Credit Cards / Owe someone’s money etc…) 31

30. Family Income Protection( Beneficiary’s Needs ) Nowadays Husband and Wife share financial responsibilities Can your Spouse or Parents afford to take over your Responsibilities ? SACRIFICE LIFESTYLE & LUXURY ? What about your Children’s needs ? Their Education, Food, Clothing and other Daily Expenses ? 32

31. Education Fund for Children( Beneficiary’s Needs ) If you are no longer around, can your spouse afford to continue saving for your child’s education ? If this happens, Insurance Can Continue saving for your child. 33

32. Estate Duty Planning STAMP DUTY ACT 1988 Leaving Assets above $2 million 34

33. Estate Duty Planning Through Insurance Planning Can help Pay for the Estate Duty 35

34. IT IS VERY IMPORTANT TO BE CONCERNED BECAUSEWhen We Failed in Financial Planning……. 36

35. 1/ Family Problem 2/ Suffering for Kids 3/ Heavy Borrowing & Inability To Pay 4/ Mental Agony & Poor Health 5/ Look Down in the Society 6/ Dependability on Charity 7/ Burden To Someone Until Death 37

36. What Is Your Concern ? INSURANCE PLANNING Can Help You Planfor ……. 38

37. Family Income Protection • Total Permanent Disability Income • Critical Illness Fund • Children’s Education Fund • Retirement Fund • Business Capital / Investment • Build your Dream House • Estate Duty Planning • Children’s / Your Wedding Fund (!!) 39

38. TERIMA KASIH DAN SELAMAT MERANCANG KEWANGAN BISKITA 40