CHAPTER 5

LIFE AND HEALTH INSURANCE

PERSONAL FINANCIAL PLANNING
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ØPersonal financial planning should be tailored to the

individual, with no two plans should be alike.

ØRisk management process involves the identification,

measurement and treatment to potential loss.
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There are six basic stages of a good financial planning

process which distinguishes the true financial insurance
adviser from the mere salesman.
I. The gathering of information about a client, or
prospective client.
II. Establishing the financial objectives of a client, by
asking about his personal ambitions for the future.
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III. Analyzing the information about the client in stages

(I) and (II) to establish the precise needs of the
client’s objectives, but also ensuring that possible
weaknesses in his financial situation, either current
or future, are closed.
IV. Recommending a comprehensive scheme to
answer these needs, including specific
recommendation about life insurance contracts and
saving options.
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V. Implementation of the scheme, filling in the

proposal forms, and ensuring the policies are
correctly put into force with the minimum of fuss and
in the most tax efficient way.
VI. Monitoring the scheme, to ensure the client’s
changing needs are reflected in the balance of his
financial plan