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Role Of Investor
''YOU AS AN INVESTOR PLAY A MORE IMPORTANT ROLE THAN ANY COMPANY, PRODUCT OR CONSULTANT,
WHEN IT COMES TO YOUR WEALTH CREATION UNDERSTAND YOUR ROLE AND PLAY IT CORRECTLY.''

For most investors, when they first think of investment the question that comes to them is -
कितना रिटर्न मिलेगा?
कितने जल्दी मिलेगा?
टैक्स बेनिफिट मिलेगा क्या?

Well these are all wrong questions we ask to our consultant or even to ourselves when we are doing investment. Let us understand, Investment is not a product; it is a process or delivery system to all our future financial needs. The process starts with we taking the decision to do investment and will be there for life. Once we accept the process, we need to understand that it will have intermediaries to support the process.
We can classify them in 2 major categories
External Factors -
1. Economy At Large
2. Investment Riders
3. Technical Parameters

The External Factors: The Economy, The Technical parameters, the Companies or product we select are very neutral to individuals, they affect the whole investor community. They change with time. As an investor we cannot influence, modify, change or create the external factors. We can only keep a watch on them, understand them and design our investment strategies to take best advantage of them.
The investor has to get regular information, and education about the external factors from the consultant.

In today's topic we are talking about Policy Assignment -

Technical Knowledge: Policy Assignment

Definition- Assignment simply means transfer of rights from one person to another. The policy holder (assignor) can transfer the rights of his insurance policy , to another person (assignee) for various reasons and this process is called “Assignment”

Once the rights have been transferred to the Assignee, the rights of the Assignor stands cancelled and the Assignee becomes the owner of the policy.

There are 2 types of assignments -
1. Absolute Assignment - Complete Transfer of rights from the Assigner to the Assignee, without any further conditions
2. Conditional Assignment - Transfer of Rights will happen from the Assigner to the Assignee subject to certain conditions. If the conditions are fulfilled then only the Policy will get transferred from the Assigner to the Assignee.
Lets take an example -
Rahul owns 2 Life Insurance policies of value Rs 2 lakhs and Rs 5 lakhs respectively. He would like to gift one policy of Rs 2 lakhs to his wife under love and affection. In that case, he would like to absolutely assign the policy in her name such that the death or maturity proceeds are directly paid to her. Thus, after the assignment, his wife becomes the absolute owner of the policy. If she wishes, she may again transfer it to someone else for any other reason. This type of Assignment is called “Absolute Assignment”
Rahul wants to take a loan from bank. So, he thought of doing so against the other policy that he owned . To take a loan from ABC bank, he needed to conditionally assign the policy to that Bank . If Rahul failed to repay the loan or in case of any uncertain event then the bank would claim the policy and get their money from the insurance company.
Once Rahul’s loan is completely repaid, then the policy would again come back to him. This type of Assignment is called “Conditional Assignment”

Benefits:
1. Assignment gives full right to the assignee thus succession or objections issues don’t surface.
2. Assignment is easy and safe way to do collateral securities.
3. Assignment can help transfer the rights to the person you want with least legal procedures and lowest cost.
Procedure:
1. Notice of assignment to be summitted to company along with all KYC documents
2. Assignment Form duly signed by the assignor
3. For Conditional assignment letter form assignee for reason assigned is also needed

Points To Ponder:
Once assignment is done the right of policy holder and nominee is also cancelled , so when the policyholder receives the policy back from bank after the repayment of loan he needs to reassign the policy in his name and again do fresh nomination, Please check with your insurance policy which you have received back once your personal or housing loan is over if you have reassigned them and also done fresh nomination.

Financial Planning is a process about An Individual’s:
1. Finance Management
2. Investment Planning
3. Wealth Management

Why Financial Planning?
Financial Stress- Investment Planning has been more complex in today’s multi-dimensional world. With many options to invest, overload of information which is not accounted for, the Investor is in confused state of mind when doing investment. Money Management- More money, more avenues, more money chasing, more needs, more money creating more liabilities & Debt driven life style in leading families in debt traps. Future Needs- Inflation, longevity, unit families has its own cost to be paid. Now for an individual/family a proper systematic planning of their future needs & investment in different tools available is the need of the hour. Financial Planning was never so much in demand as it is today.

Step 1 - Finance Management - Even with 15% compounded returns on Investment it takes 7 years for Investment to double, but with good control on expenses an Investor can double his Investment Immediately. That is the importance of good Out-Go Management system. Out-Go Management Activities:  Tax Planning  Yearly Out Go System  Liability Control

B. Step 2 - Investment Planning - Investment Planning starts the day you decide to do it and will be there for life, Only the Step Changes, but monitoring is a permanent activity. Each investor needs to work on 6 steps. 1. Goal Planning - Understanding individual’s & family’s short, mid & long term capital needs and it’s future value based on inflation. 2. Analyzing Current Investment - Understanding the current investment role in above goals. 3. Investment Allocation - Selecting the best risk & safe market Investment combinations to suit each individual’s risk taking capacity and also the goals to be achieved. 4. Risk Management - Managing Eventualities: Life—Health— Disability—Property. 5. Selecting Investment Products - Select different products available based on their Role in Investment Process. 6. Record Review Restructure - Designing a continuous & easy way of monitoring & restructuring investment.

C. Step 3 - Wealth Management - Utilizing the wealth created & creating a legacy plan to transfer it to next generation without any hassle.