MTHEL131 Chapter Notes - Chapter 14: Liability Insurance, Financial Plan, Financial Instrument
11 Oct 2013
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Document Summary
Chapter 14: life and health insurance in financial planning. Elements: identification of the overall financial goals and objectives. Development and implementation of an integrated plan to accomplish the objectives, taking into consideration the individual"s circumstances. The key is starting out with the objectives, instead of seeing how a particular financial instrument would fit into their financial plan. Planning today is more difficult because of: greater economic uncertainty (ex. fluctuations in rates and inflation, constantly changing rules (ex. tax law changes, proliferation of new financial instruments. Financial tools include things such as life insurance, property and liability insurance, mutual funds, stocks, bonds, annuities, savings accounts, wills, trusts, real estate. Usually accomplished with a fact-finding questionnaire interest, lifestyle, risk tolerance. Advisor must probe into sensitive and confidential business while communicating effectively and professionally. Quantitative and qualitative information must be examined in light of the client"s objectives insurance needs would be determined, policies would be reviewed.
