QUESTION:

NOTE: TO PREPARED: 2018KassimMariamTOTAL

CASH FLOW STATEMENT

NET WORTH STATEMENT3 COLUMN

RISK MANAGEMENT PLANNING -statement

- IF THE HUSBAND DIES OR BECOME DISABLED

(USING CAPITAL INTACT METHOD)

- outflows from CF Statement

- adjustment (since husband is dead), some use assumption

Capital intact method

Coverage for open liabilities (find the difference for item not yet covered by Insurance/Takaful) - 100K

Coverage needed = C+ D - existing coverage (500)

SURPLUS/DEFICIT

Recommendation

How much money needed to sustain family?

Capital Intact method

Total

Estimated annual expenses(b)

????

Return on investment p.a. (from case assumptions/asset allocation)

6.74%

Capital Intact Amount =800k

Expenses / Return

ASSUMPTIONS: