subject : Personal Financial Planning

1. Wahid, a construction worker has never acquired more than a RM10,000 term life insurance policy at work that only costs RM250 per year. A friend recommended Wahid to see a competent agent about life insurance since two men have been killed on the job since last year where Wahid works. Discuss the issues that need to be addressed related to the choice of insurance policy. 2. Vince and Jennifer is a two-income couple in their early 30s. They just had their first child, Linda, three (3) months old. Vince, aged 32, already has a group life insurance policy, but Jennifer's employer does not offer life insurance. A financial planner is recommending that the 30 year old Jennifer buys a RM200,000 whole life policy with an annual premium of RM1,550. The policy has an assumed rate of earning of 10 percent a year. (a) Advise Jennifer whether to buy the policy or any other suitable policies. (b) Discuss some of the benefits on buying a whole life insurance policy. (c) Is insurance applicable to everyone? Why