1 1 FINANCIAL PLANNING IN INSURANCE MADE EASY By Pg Hj Abd Rahman bin PDPH Jaludin Senior Insurance Planner Representing American International Assurance.

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FINANCIAL PLANNING IN INSURANCE MADE

EASYByBy

Pg Hj Abd Rahman bin PDPH Jaludin Pg Hj Abd Rahman bin PDPH Jaludin Senior Insurance PlannerSenior Insurance Planner

Representing American International Assurance Representing American International Assurance Co Ltd Co Ltd

Information provided in this presentation is Information provided in this presentation is correct as at 10correct as at 10thth March 2005 March 2005

<< U$IN $ENCE >>

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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.

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AGENDA

Why People Need Financial Planning ?

5 Steps of Financial Planning in Insurance

Two Major Benefits of Insurance

Reasons for Financial Planning

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What Is Financial Planning ?

Saving Aside Your Money For A Certain

Good Priority For Your Future Needs

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Why People Need Financial Planning ?

$ Goal in future

Procrastination

Now Then

Shortfall

Now

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How Financial Planning WorksIdentify

goals / Needs

GatherData Information

Design / RecommendAction Plan

Implement Action Plan

MonitorProgress

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Financial Planning ToolsThere 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

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INSURANCE

one of the safest and cheapest

tools for financial planning

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INSURANCE

$100,000 = $100

Asset Savings

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OBJECTIVE

Using Insurance To Do Financial

Planning

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Need to understand WHAT & HOW

Insurance can do for us ?

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Living Needs

Beneficiary’s Needs

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Living NeedsFoodClothingHealthWater , Electricity, Phone BillsShelter Education for your childrenCarEntertainment ( Cinemas, outing, traveling

etc… )

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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 ?

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No Income Expenses Cut

Down

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Portrayal of a Man or Husband

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Total Permanent Disability Income

( Living Needs )• Do you want to be Financially

Independent even at your worst time?

If yes, then If yes, then through insurance through insurance planning can help planning can help you be financially you be financially independentindependent

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Critical Illness Fund

( Living Needs )

Treatment Costs of Critical Illness

Cardiovascular diseasesHeart attack $5 k to 15

kCoronary Bypass Surgery $30 kValvular Surgery $30 k to 50 kPTCA $15 k

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Critical Illness Fund

( Living Needs )

Treatment Costs of Critical Illness

Cancer Treatment costsSurgery $15 k to 25 kRadiotherapy $20 kChemotherapy $20 k to 100 k

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Critical Illness Fund

( Living Needs )

Treatment Costs of Critical Illness

Kidney Dialysis

$2000 per month

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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

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Critical Illness Fund( Living Needs )

With modern technologies nowadays,

You may survive your illness, but without insurance planning, You may be dead financially !!!

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Hospital Bills ( Living Needs )

• Other Illness ( not Critical )• Admitted few days• Money ! ( First Class

Ward / Food expenses / Time )

• Hidden Costs

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Hospital Bills ( Living Needs )

Would you like insurance to reimburse back your money & time that you’ve lost ?

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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 ?

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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

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Capital Accumulation

Through

Insurance, You

Can Do

Investment and

at the same time

provide Income

Protection For

your Family

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Capital Accumulation(Many Reasons)

• Retirement Fund• Business Capital• Purchase or build

your dream house• Children’s Education

Fund• Wedding Fund etc….

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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…)

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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 ?

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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.

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Estate Duty Planning STAMP DUTY ACT 1988

Leaving Assets above $2 million

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Estate Duty Planning

Through Insurance Planning Can help Pay for the Estate Duty

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IT IS VERY IMPORTANT TO BE

CONCERNED

BECAUSE When We Failed in

Financial Planning…….

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1/ Family Problem

2/ Suffering for Kids3/ Heavy Borrowing & Inability To

Pay4/ Mental Agony & Poor Health

5/ Look Down in the Society

6/ Dependability on Charity

7/ Burden To Someone Until Death

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What Is Your Concern ?

INSURANCE PLANNING Can Help You Plan

for …….

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• 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

(!!)

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TERIMA KASIH

DAN

SELAMAT MERANCANG KEWANGAN BISKITA