1 1 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 10 th March 2005 >

2 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.

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

4 4 What We Do ? “We Do Good Things” Role:Educate, Advise etc Existing Client:Review / Update etc

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

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

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

8 8 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

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

10 INSURANCE $100,000 = $100 AssetSavings

11 OBJECTIVE Using Insurance To Do Financial Planning

12 Need to understand WHAT & HOW Insurance can do for us ?

13 Living Needs Beneficiary’s Needs

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

15 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 ?

16 No Income Expenses Cut Down

17 Portrayal of a Man or Husband

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

19 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

20 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

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

22 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

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

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

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

26 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 ?

27 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

28 Capital Accumulation Through Insurance, You Can Do Investment and at the same time provide Income Protection For your Family

29 Capital Accumulation Would you like us to help you invest your money and at the same time, you and your Family are Financially Protected ?

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

31 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…)

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

33 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.

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

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

36 IT IS VERY IMPORTANT TO BE CONCERNED BECAUSE When We Failed in Financial Planning…….

37 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

38 What Is Your Concern ? INSURANCE PLANNING Can Help You Plan for …….

39 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 (!!)

40 TERIMA KASIH DAN SELAMAT MERANCANG KEWANGAN BISKITA