5TH February 2016, Hyderabad:
The institute-industry interaction
sessions are very common in the ecosystem of Vignana Jyothi Institute of
Management, Hyderabad. On 5thFebruary, 2016, Mr. P Naresh Kumar,
Cluster Manager- Sales training, PNB MetLife India Insurance Co. Ltd. graced
the week’s interaction session.
Mr. Naresh started the session by
decoding the real meaning of “insurance”. The word “Insurance” is often
perceived as a policy meant for “life”. Whereas“Insurance” is a policy in which
an individual receives financial protection. Insurance can provide protection
for an individual, his assets and his business. The insurance industry of India
consists of 53 insurance companies of which 24 are in life insurance business
and remaining 29 are non-life insurers.
For insurance we need mainly
financial planning determining an individual’s financial goals, purpose in life
and life’s priorities, considering his/her resources, risk profile and current
lifestyle, and detailing a balanced and realistic plan to meet the goals. The
scope of planning would usually include 1.Risk Management and Insurance
Planning, 2.Investment and Planning Issues, 3.Retirement Planning, 4. Tax
Planning and Estate Planning, 5.Cash Flow and Liability Management,
6.Relationship Management and Education planning for Kids and the Family
members.Why financial planning? To control inflation- cost of education/medical
increasing exponentially, rising life expectancy, appropriate allocation, and
protect lifestyle of family.
Net worth is the difference between
the totals of your assets and liabilities. Determining the net worth is the
first step in financial planning.
Cash flow plans are commonly used by
business houses. Without a viable cash flow plan, a company could easily spend
more than its revenue, putting it in peril. Unfortunately, most of us do not
realize that a cash flow plan is important for even students. The principles
that apply to corporate finance and to our personal lives are largely the same.
Budgeting is a process of tracking,
planning, controlling inflow and outflow of income. Budgeting is important for
insurance planning. Making personal budget is very easy and important too. In
order to have the personal budget sorted, one needs to cultivate the habit of collecting
bills, receipts and other documents which will help one monitor ones spending
for the month.
Goal setting is deciding the end
point of an individual’s planning exercise- determining where one aspires to
be. “The more tangible the goals, the easier it is to plan toward their
realization. Always ensure that your goals are S.M.A.R.T.,” says Mr. Naresh. “SMART-
Specific Measurable Actionable Realistic Time bound.”
Specify your goal, the goal should be
measurable, actionable. It should be realistic in nature and the most important
thing is and should be complete within the time bound.
Thus the session on INSURANCE was
finished with useful information about the insurance sectors.
J Lakshmi Sowjanya
PGDM,
PR Committee
VJIM
