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Life Risk Management


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Risk Management -- Insurance

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Life Risk Management

  2. 2. Insurance Concept <ul><li>Man </li></ul><ul><li>At </li></ul><ul><li>Work </li></ul><ul><li>Income </li></ul>House Hold Expenses Future Needs <ul><li>House Rent </li></ul><ul><li>Food </li></ul><ul><li>Clothes </li></ul><ul><li>Utilities </li></ul><ul><li>Education </li></ul><ul><li>Medication </li></ul><ul><li>Misc </li></ul><ul><li>Rainy Days </li></ul><ul><li>Higher Education </li></ul><ul><li>Daughter’s Wedding </li></ul><ul><li>Retirement </li></ul><ul><li>Bank Deposit </li></ul><ul><li>Shares </li></ul><ul><li>Jewelry </li></ul><ul><li>Prize Bond </li></ul><ul><li>DSC etc … </li></ul>Early Death Disability ? “ 0”
  3. 3. Personal Financial Planning <ul><li>Man </li></ul><ul><li>At </li></ul><ul><li>Work </li></ul><ul><li>Income </li></ul>House Hold Expenses Future Needs <ul><li>House Rent </li></ul><ul><li>Food </li></ul><ul><li>Clothes </li></ul><ul><li>Utilities </li></ul><ul><li>Education </li></ul><ul><li>Medication </li></ul><ul><li>Misc </li></ul><ul><li>Rainy Days </li></ul><ul><li>Higher Education </li></ul><ul><li>Daughter’s Wedding </li></ul><ul><li>Retirement </li></ul>Insurance Company’s Managed Growth Fund Security Today Cash Tomorrow
  4. 4. Education Presentation <ul><li>Your Commitment today-their education tomorrow </li></ul>Education Fund Rs. 5.0 Million School Cost Rs. 5,000 p.m <ul><li>School Fees </li></ul><ul><li>Tuition Fees </li></ul><ul><li>Books </li></ul><ul><li>Uniform </li></ul><ul><li>Pocket Money </li></ul><ul><li>Transportation </li></ul>15 Yrs. Premium: 60,000---------------------------- 1.30 million (7% inflation) In case of Payer’s early death: <ul><li>No more to pay, future premium waived. </li></ul><ul><li>Income benefit to meet school cost. </li></ul><ul><li>Education fund at maturity. </li></ul>In case of disability: <ul><li>No more to pay. </li></ul><ul><li>Education fund at maturity. </li></ul>Safe guarding your children’s educational future
  5. 5. Business Protection <ul><li>Key Person </li></ul>Business Cash Flow Liabilities <ul><li>Running Finance </li></ul><ul><li>Term Finance </li></ul><ul><li>Mortgage </li></ul><ul><li>Leasing </li></ul>M o n e y – in – T r a n s a c t i o n A s s e t s <ul><li>Property </li></ul><ul><li>Jewelry </li></ul><ul><li>DSC </li></ul><ul><li>Prize bond etc. </li></ul>Business Expenses House Hold Expenses Children’s Higher Education Daughter’s Wedding Loss of Income Medical Expenses Loss of credit Repayment of Loan An “Emergency Fund” is needed to “Repay Loans and to Protect Assets” Early Death Disability
  6. 6. Pension <ul><li>Age between 25 – 50 yrs. </li></ul>Retirement Fund Rs. 1,500,000 Working Period Retirement Period ……………… Up to age 60-65 Pension: Annual Rs. 300,000 Monthly Rs. 25,000 Premium Pay: Rs. 67 a day Rs. 2,000 a month Rs. 25,000 a year Pay till 15 years……….375,000 OR One Time .. 150,000 In case of early death: <ul><li>Natural: Rs. 600,000 OR the cash value (whichever is greater) . </li></ul><ul><li>Accidental: Rs. 1,100,000 OR the cash value (whichever is greater) . </li></ul>In case of disability: ( Due to Accident) <ul><li>Compensation to be paid: Rs. 500,000 </li></ul><ul><li>Retirement Fund at maturity: Rs. 1,500,000 </li></ul>
  7. 7. Planning & Lack of Planning <ul><li>There are two kinds of people in our society: </li></ul>A B First Saving and then spending Saving Rs. 200,000 Spending Rs. 500,000 10 Y E A R S Spending Rs. 500,000 First Spending and then Paying 10 Y E A R S Paying Rs.1,000,000 “ Both kind of people’s spending is same but the cost is different” “ A” has advantage of planning in advance and the “B” is suffering due to lack of planning.
  8. 8. Creating Real Estate <ul><li>. </li></ul>Rs. 100,000/ per annum 12 11 10 9 8 7 6 5 4 3 2 1 Total Payment in 12 yrs. Rs. 1,200,000 Premium 25 24 23 22 21 20 19 18 17 16 15 14 13 Benefits After 12 yrs. Payable Lump sum Rs.3,000,000 OR Partial withdrawl Rs. 400,000 for 13 yrs . Partial with drawls 5.0 M At 25 th year an other 10 M Total Payment Rs. 15 M <ul><li>Creating real estate on installments. </li></ul><ul><li>In addition to earn rental income the value of the capital is also increased. </li></ul>