Financial Planning Objectives
Goals of the financial planning process as follows:
- Standard of Living Maslow's basic needs satisfied such as food, water, clothing, shelter, and nice-to-have discretionary items, such as automobiles, vacations, entertainment.
- Savings emergency funds for sudden and unexpected events, such as extra living expenses because of a fire at one's home.
- Protection DISABILITY INCOME INSURANCE; HEALTH INSURANCE; LIFE INSURANCE; PROPERTY AND LIABILITY INSURANCE (all forms designed to offer coverage against the uncertainty of a financial loss due to the PURE RISK).
- . Investment Accumulation of wealth through the return on assets deployed leading to financial independence.
- Estate Planning distribution of the invested assets held for the purpose of the accumulation of wealth in a tax efficient and effective manner.
Popular Insurance Terms
Single payment or periodic payments that are made to purchase an annuity. ...
Expenses taken out when benefits are paid. For example, a specific dollar amount is subtracted from a monthly income payment for company expenses. ...
Basic contract language in individual health and accident insurance policies. These provisions are required under a model state law known as the uniform individual accident and sickness ...
Payment made by a party causing harm to the party incurring that harm. ...
Same as term Commutation Right: right of a beneficiary of a life insurance policy to exchange the future installments due that beneficiary for a lump sum distribution. ...
Actuarial procedure used to determine the cost of protection of a cash value life insurance policy on an annual basis. This cost of protection is developed by the following steps: Cash ...
Modifications of the traditional defined benefit plan in which employees are credited with a specified percentage for each year of recognized service with the employer. Upon termination of ...
Attachment to a property insurance policy that automatically adjusts its coverage according to the construction cost index in a community. This endorsement is necessary in a property ...
In insurance, company revenues from underwriting and investment. Insurance companies make money first, by underwriting good risks so that their premium dollars cover claims losses and ...
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