保险学Tresch12eCh21.pptVIP

Financial and Estate PlanningChapter 21 Chapter Objectives Explain the differences between the goals of financial planning and estate planning List three factors that may result in estate shrinkage Describe the nature of death taxes and explain the basic approach for computing federal estate taxes Explain why a will is an important estate planning tool Provide an example illustrating how gifts can be used to achieve estate planning goals List the basic elements of a trust and explain how trusts can be used in estate planning Analyze a family situation and make recommendations to deal with the risks of premature death and loss of health Explain the important factors in selecting an insurer, an insurance policy, and appropriate ways to compare the costs of different policies Financial Planning The term financial planning achieved widespread usage during the 1970s and 1980s Individuals sought ways to deal with the effects of high interest, inflation, and taxation To some people, financial planning primarily involved schemes to shelter income from taxes To others it was synonymous with investment activities And to others it was merely another term for insurance sales Financial Planning Agreement has emerged about some aspects of the concept and about those who call themselves financial planners Financial planning is defined as a process involving The establishment of financial goals The development and implementation of a plan for achieving those goals The periodic review and revision of the overall plan Financial Planning Many similarities exist between the financial planning process and the risk management process But risk management is properly classified as a subset of financial planning A complete financial plan also involves analysis of elements not associated with pure risk Examples include cash flow management, income taxes, investments, and estate transfer plans Recognition of the overall financial planning context should lead to a bet