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  AIFC's Financial Planning  

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In many parts of the world, the role of the financial planner has become significant, and many people have, just like they have an accountant and a lawyer, a financial planner. .

The financial planner is responsible for guiding and advising a client on how to achieve both short and long-term financial goals and security. He/She assist in helping to understand day-to-day and long-term financials needs and how to go about planning and providing for those needs.

Financial planning is quickly becoming a field of study in its own right, with high amounts of research and knowledge being produced each year.

What is Financial planning  

Broadly speaking, Financial planning, in the modern sense has a client’s financial needs at its core. Financial planning is an integrated process whereby people are associated with their:

  • Cash Flow Planning

  • Retirement Planning

  • Contingency Planning

  • Investment Planning

  • Tax Planning

Most individuals {others than those who can rely on an inexhaustible supply of funds} need to plan. Effective financial will:

  • Help fight against inflation

  • Ensure they have adequate income, whey they need it

  • Provide a roadmap of their objective

  • Improve their present, as their future lifestyle

  • Give them “peace of mind” in regard to their financial situation

There are a number of key elements or factors to be kept in mind in relation to the concept of financial planning. These are :

It is a process

This is not simply a product. It is the result of listening, consultation and interactive financial calculations.

It is comprehensive.

All aspects of a client’s needs and requirements need to be fully explained and explored.

Seeks maximum utility. 

Utility is the economist’s term for usefulness. This factor basically means that the financial plan has to aim to produce concrete and tangible results that provide customer satisfaction. 

Recognition of the individual.  

There probably should be no two financial plans that are same as no two investors are the same. All of us have different investment objective, different risk appetite etc.

Acknowledges the seasons of life.

A financial plan is not a static instrument and needs to be updated on a regular basis.

Insurance  

When you’re young, single, and relatively carefree, insurance probably isn’t something you think much about.  But if you find yourself with a spouse, a mortgage, and possibly a child or two, insurance may become a critical part of your financial picture. Knowledge is the key, however, to figuring it all out and providing adequate coverage.

At its most basic level,  insurance protects your family after you’re gone. You typically pay regular premiums for the life of the policy.  If you die,  the insurance company pays your beneficiary the policy’s stated death benefit.  One of the most unpleasant terms in insurance parlance is “death benefit,”  but that’s exactly what it’s designed to provide.  Some types of insurance also provide a savings component, called the policy’s cash value.

There are different types of insurance available,  and each can serve a valuable purpose in planning for your family’s future.

How Can I Protect My Home?

Homeowners need protection against liability (in case someone is injured on their property) and theft of or damage to their property.

These are the five most common forms of homeowners insurance:

  • Basic……………

  • Broad…………..

  • Special…………

  • Tenants………..

*Condominium and co-operative apartments

There are some basic questions you need to answer in deciding on a homeowner’s policy that is right for you.

How much is enough? How much would it cost to rebuild your home if it were leveled? Typically, if you are insured for 80 percent or more of the cost of rebuilding, your carrier will pay the total cost of any repair, up to the limit of your coverage. If not, only a proportionate percentage of the cost of repairs will be paid. Because of this drawback, you should consider buying guaranteed replacement, a feature that ensures almost full reimbursement for repair costs.

Do you need a guaranteed replacement provision? A guaranteed replacement provision places responsibility for valuation of your home on the shoulders of your insurance company. Your insurance company will conduct this appraisal, make sure your coverage is adequate, and automatically upgrade your policy as the value of your property increases.

Your premium rises automatically along with this increase.

A standard policy may cover your home contents for half the dollar limit you carry on the  house.  Unless you buy replacement-value coverage, you will only be reimbursed for the depreciated value of your furniture and belongings with new or equal-quality items at current market prices. However, unless specified, your policy may not cover work required to bring the property current with existing building codes.

Do you have any additional valuables you need to protect? For an additional cost, you can add “floaters.” They are designed to cover specific valuables such as jewelry, silverware, furs, a valuable collection, or the contents of your safe-deposit box, up to a certain amount. Additional coverage may also be desired, such as flood or earthquake insurance, if you live in a high-risk zone.

Home is where the heart is. Be sure your home and its contents are adequately insured. 

Insurance and Mortgage Plan Scheme

Mortgage Plan Scheme (MPS) provides an integrated insurance coverage for its customers. The insurance is in a form of life insurance or MRTA. The cost of this insurance is integrated into a loan and customer’s installment will also include a payment for insurance premium. The insurance is provided directly from MPS lender.

   

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