Insurance Regulatory and Development Authority (IRDA) has been receiving complaints, through email/letters and in its Integrated Grievance Management System, from members of public informing the Authority that they are receiving spurious calls from unidentified persons: Claiming to be representatives of IRDA and offering insurance policies of different insurance companies with various benefits. Claiming that IRDA is distributing bonus to insurance policy holders out of the funds invested by insurance companies with IRDA. Claiming that the policyholder would receive bonuses being distributed by IRDA if they purchase an insurance policy and wait for a few months after which the bonus would be released by IRDA. Advising customers to subscribe to fresh policy after surrender of the existing policy and wait for a few months after which the fresh policy would be entitled for additional enhanced returns / benefits. Informing that ‘Survival Benefit or Maturity Proceeds or Bonus’ is due under their existing policy and investing in a new insurance policy is mandatory to receive the amounts which are due. Advising public to invest in insurance policies to avail gifts, promotional offers, interest free loans, or setting up of Telecom towers or other such offers. The general public is hereby informed that IRDA is a regulatory body established by an Act of Parliament, i.e. the Insurance Regulatory and Development Authority Act 1999, to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. Further, IRDA informs the members of public that: IRDA does not involve directly or through any representative in sale of any kind of insurance or financial products. IRDA does not invest the premium received by insurance companies. IRDA does not announce any bonus for policyholders or insurers. Any person making any kind of transaction with such individuals/agents will be doing the same at their own risk. IRDA hereby urges the public to remain alert and not to fall prey to frauds or scams perpetrated by miscreants who impersonate to be employees / officers of IRDA or other insurance companies. If any member of the public notices such instances, he or she may lodge a police complaint, along with the details of the caller and telephone number from which the call was received, in the local police station.
| FAQs
This entails identifying your financial objectives, be it saving for retirement, creating an emergency fund, or eliminating debt. When setting these goals, it's vital to consider the timeline for achieving them, along with the necessary resources and strategies.
What is financial planning and steps in financial planning? ›
It involves chalking out a plan listing all your future goals and estimating the capital required for their completion. You then plan out the financial means to attain them. It may involve saving, investment, and administration of funds, among others.
What is financial planning and investment? ›
Financial planning is the process of taking a comprehensive look at your financial situation and building a specific financial plan to reach your goals. As a result, financial planning often delves into multiple areas of finance, including investing, taxes, savings, retirement, your estate, insurance and more.
What are the steps in effective financial planning? ›
9 steps in financial planning
- Set financial goals. A good financial plan is guided by your financial goals. ...
- Track your money. ...
- Budget for emergencies. ...
- Tackle high-interest debt. ...
- Plan for retirement. ...
- Optimize your finances with tax planning. ...
- Invest to build your future goals. ...
- Grow your financial well-being.
A good financial plan contains seven key components:
- Budgeting and taxes.
- Managing liquidity, or ready access to cash.
- Financing large purchases.
- Managing your risk.
- Investing your money.
- Planning for retirement and the transfer of your wealth.
- Communication and record keeping.
Financial planning involves a thorough evaluation of one's money situation (income, spending, debt, and saving) and expectations for the future. It can be created independently or with the help of a certified financial planner.
What are the main points of financial planning? ›
Some of the key elements of the financial plan are budgeting, insurance coverage, tax planning, debt management, long-term savings, etc. What is the objective of a financial plan? The objective of a financial plan is to provide a roadmap to manage your financial resources to achieve your financial goals in future.
How to start financial planning? ›
Personalized financial planning explained step-by-step
- When it comes to life's biggest moments, you probably had a plan. ...
- Set financial goals. ...
- Follow a budget. ...
- Build an emergency fund. ...
- Manage debt. ...
- Protect with insurance. ...
- Plan for taxes. ...
- Plan for retirement.
Investment planning is the process of identifying your financial goals and making a strategy to achieve them. Investment planning starts with assessing your financial goals and making a list of your goals and ends with investment and regular portfolio monitoring.
What does financial planning cover? ›
Financial planning involves looking at a client's entire financial picture and advising them on how to achieve their short- and long-term financial goals.
Finance experts advise that individual finance planning should be guided by three principles: prioritizing, appraisal and restraint. Understanding these concepts is the key to putting your personal finances on track.
How to build an investment plan? ›
5 steps to creating your plan
- Set specific and realistic goals. ...
- Calculate how much you need to save each month. ...
- Choose your investment strategy. ...
- Develop an investment policy statement with your adviser. ...
- Review your plan regularly.
In this blog, we explore the five key components of a financial plan and how they work together.
- Investments. Investments are a vital part of a well-rounded financial plan. ...
- Insurance. Protecting your assets—including yourself—is as important as growing your finances. ...
- Retirement Strategy. ...
- Trust and Estate Planning. ...
- Taxes.
Financial planning is the process of assessing the current financial situation of a business to identify future financial goals and how to achieve them. The financial plan itself is a document that serves as a roadmap for a company's financial growth.
What are the four main types of financial planning? ›
The four main types of financial planning are cash flow planning, tax planning, investment planning, and retirement planning. Each of these types of financial planning has different goals, concerns, and objectives.
What are the six principles of financial planning? ›
Watch to learn about six personal finance topics that can have a big impact on your life: budgeting, saving, debt, taxes, insurance, and retirement.
What is the 6 steps of financial planning? ›
There are six steps in the financial planning process: understanding your financial circ*mstances, identifying goals, analyzing your current course of action, developing a financial plan, and monitoring progress and updating. This is a great question to ask if you're considering working with a financial planner.
What are the 8 steps of financial planning? ›
8 Keys to Good Financial Plans
- Setting financial goals. ...
- Net worth statement. ...
- Budget and cash flow planning. ...
- Debt management plan. ...
- Retirement plan. ...
- Emergency funds. ...
- Insurance coverage. ...
- Estate plan.
Use this step-by-step financial planning guide to become more engaged with your finances now and into the future.
- Assess your financial situation and typical expenses. ...
- Set your financial goals. ...
- Create a plan that reflects the present and future. ...
- Fund your goals through saving and investing.
The six steps are:
- Step 1 - Identifying problems and opportunities.
- Step 2 - Inventorying and forecasting conditions.
- Step 3 - Formulating alternative plans.
- Step 4 - Evaluating alternative plans.
- Step 5 - Comparing alternative plans.
- Step 6 - Selecting a plan.
