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NRoll Assignment topic Objectives of Academic Organizati Model

o No Activity on
As an individual, How will you Write up including the
anticipate your personal financial plan - 5
To understand where to
Insurance needs? Determine marks
the most appropriate but the insurance and
types of insurance by the role of the
Finding the right plan
comparing the insurance insurance in the
mix-5marks
costs in financial planning
each case and decide process. Using the least
whether you should purchase
the policy or not.. amount of money-
5marks
you are allocated Rs 40,000/-
year and you be paying the
same at your age and buy
the insurance policies which
will fulfill the right financial
goal of your life .
Signature of COD-F Signature of Faculty Member

You have also to take care that to live how much amount you require today and how much you will
require in future using time value of money calculations.

Then you will say how much time you can live up to .you will compare the 2pension plans of any
companies and which one you will prefer and why and which option of annuity you will take and
why

As an individual, How will you anticipate your personal

Insurance needs? Determine the most appropriate
types of insurance by comparing the insurance costs in
each case and decide whether you should purchase

the policy or not..

Iske 1-1 line likh lena .book se.

Starting mein likhna . As I am 22 years old. . bus uske baad

likh dena. Book se.

The Role of Insurance in Financial Plan

Insurance is an important element of any sound financial plan. Different types of insurance protect you and your
loved ones in different ways against the cost of accidents, illness, disability, and death.

Personal Insurance Needs

The insurance decisions you make should be based on your family, age, and economic situation. There are
many forms of insurance and, unfortunately, no one-size-fits-all policy.

Following is a list of the forms of insurance required by me.

 Life Insurance

Life insurance, payable when you die, can provide a surviving spouse, children, and other dependents with the
funds necessary to maintain their standards of living, can help repay debt, and can fund education tuition costs.
The amount you need depends on your situation.

Auto Insurance
Auto insurance protects you from damage to the often considerable investment in a car and/or from liability for
damage or injury caused by you or someone driving your vehicle. It can also help cover expenses you or anyone
in your car may incur as a result of an accident with an uninsured motorist.

Homeowner's Insurance

Homeowner's insurance should allow you to rebuild and refurnish your home after a catastrophe and insulate you
from lawsuits if someone is injured on your property. Coverage of at least 80% of your home's replacement
value, minus the value of land and foundation, is necessary for you to be covered for the cost of repairs.

Liability Insurance
Often called umbrella liability coverage, this takes effect when the personal liability and lawsuit coverage in other
policies is exhausted. The cost for $1 million worth of protection -- especially necessary for high-income
individuals and those with considerable assets -- may be only a few hundred dollars a year.

Health Insurance
Most people enjoy medical insurance as an employee benefit, often with their employers paying whole or part of
the premiums.

Determine the most appropriate types of insurance by

comparing the insurance costs in each case and decide
whether you should purchase the policy or not..

Sir c poochna

www.investmentyogi.com is a one-stop personal finance website

http://getahead.rediff.com/report/2009/nov/16/money-how-to-calculate-your-insurance-
needs.htm
You have also to take care that to live how much amount you require today and how much you will
require in future using time value of money calculations.

Picking the right one

The one that I prefer and is mostly followed by reputable financial planners for decades is the Needs
Analysis Method. Once you determine the amount of life insurance need, just buy the lowest cost
insurance plan that's available to you.

Then you will say how much time you can live up to .you will
compare the 2pension plans of any companies and which one you
will prefer and why and which option of annuity you will take and
why
Pension Plan Comparison Chart

Hdfc and lic KA LIKH LENA

Hdfc is better pension plan-
2). Flexibility to plan your retirement age.
3) Choice of Single premium and Regular premium.
4) Flexible premium payment option

5) Benefit to nominee in case of unfortunate death

6) On your chosen retirement date you will get the Sum assured + bonus which You can take up to 1/3
rd as tax free lump sum cash

So I will go for hdfc.

Annuity option-

The Immediate Annuity In this case you have to invest a lump sum and
start receiving pensions immediately.

The Deferred Annuity. In this case we have to start building a corpus at

a young age & on retirement; you receive annuities out of this corpus.

Deffered annuity is best option.

I will pay it yearly from rs 40,000 which I have kept for insurance.