Chapter 8

1. The two primary needs of any customer in any or at any point of time in his life are INVESTMENT AND PROTECTION.
2. If during the fact finding session the sole focus is on health care requirement and estate planning then the customer whose fact finding is being done, might be on RETIREMENT STAGE.
3. In case of dispute a person can approach the CONSUMER FORUM.
4. If during fact finding it is shown that customer has got various needs like Term Insurance for family’s income protection, Family health plan to cover medical needs, children’s plan to cover education expenses and Endowment policy for daughter’s marriage then the first priority would be always the TERM INSURANCE.
5. If customer’s needs are to take policy for Marriage of child, saving for family, Education for children and Protection for family, the least priority would be MARRIAGE.
6. The timing of death is uncertain therefore one should take life insurance AT AN EARLY AGE.
7. Real Needs are actual needs whereas perceived needs are based on client’s thoughts and desires.
8. Returns from equity form of investments are categorized as HIGH RISK.
9. At the retirement stage an individual does not require any protection cover.
10. With Profit policies can be given to individuals but not Surety, Key man or Partner’s insurance.
11. After the marriage of children when they are got set in their lives then it is considered that the person i.e. the father is in PRE RETIREMENT STAGE.
12. If a person is married and has parents dependent on him even if he has not got any child, his first priority should be INCOME PROTECTION.
13. If a widow received some amount on her husband’s death her prima facie focus would be on INVESTMENT MANAGEMENT.
14. The disposable income means THE SURPLUS AMT. THAT CAN BE INVESTED by a person.
15. To think of buying an expensive car is a PERCEIVED NEED and not a REAL NEED.
16. The younger the age of an individual, the HIGHER their liabilities would be.
17. Need Analysis involve identifying FINANCIAL PROVISION TO MEET PREDICTABLE AND UNPREDICTABLE NEEDS.
18. In Case of Private Sector Employees there is no defined retirement age.
19. A professional insurance market carries need based selling.
20. The concept of Need Based Selling involves SELLING WHAT CUSTOMER REQUIREMENT IS.
21. If a customer is concentrating more on health plan and retirement plan then he is at Pre Retirement Stage.
22. If a person wishes to protect his income and wants that if he does not die he would also get some amt. then he should opt for RETURN OF PREMIUM.
23. Perceived needs are those which are imagined to be important by the Client.
24. Double Income Family is a family in which both the Life Partners are the earning members of the family.
25. If a family consists of Husband, Wife and Children say 2 then although most important is the Income Protection but Child plan and Saving Plans are also important.
26. If a married person has a child then after income protection his priority would be to take a CHILD PLAN.
27. If in a health plan the cashless treatment facility is not available then policyholder needs to spend the treatment cost and then get claim from the insurer.
28. Fact Finding enables the insurance advisor to identify the CUSTOMER’S FINANCIAL NEEDS.
29. It is essential for an advisor to carry out the financial planning exercise with the prospective client because INDIVIDUALS DO NOT UNDERSTAND THEIR REAL NEEDS AND CAN NOT PRIORITIZED THEM.
30. While taking first policy customer’s PERSONAL DETAILS, EMPLOYMENT DETAILS AND FAMILY DETAILS is taken from the Customer.
31. If a person is in early 20’s and has just started earning then his Risk appetite is expected to be LOW.
32. In General the main protection need of a 19 year old person would be his Self Protection instead of Home Loan Protection, Dependent’s Protection or Protection of Children’s future.
33. If a person is the sole bread winner for his family then his First Priority would be the FINANCIAL SECURITY of his family although he has got enough amt. in his bank account.
34. Every Individual’s Expenditure Pattern is different and not the same. An individual should keep in mind his income while planning his expenditure because an individual’s income and expenditure has got relation with each other.
35. Self Employed people have to buy medical insurance than that of persons employed with Public Sector Company because, Public Sector Company employees enjoy medical covers related to their Job.