QUESTION 5

Ibrahim Yaakob have five sons who are still young. He has asked your opinion on financial
planning for his sons. Give your opinions.
Answer:
The importance of financial planning is helping to prepare and plan for the future, protecting our
own well being. In short, we have to be prepared for any emergency that might occur. In our
opinion, Encik Ibrahim Yaakob should buy Takaful product which is Education Takaful for his
sons as a saving and investment. Education Takaful gives protection and long-term saving for the
education expenses for his sons. His sons will be providing the financial benefit when they want
to further their studies. Plus, they also get the financial planning if something happened to En.
Ibrahim Yaakob. At that time, his sons will had a long-term education fund for their higher
education. For example, Encik Ibrahim Yaakob may buy Education Takaful product from MAA
Takaful. We predict that he contribute as low as RM100 per month, let say that he had paid for 5
months, and something happened to him in the next month (died, sound in mind, or suffer from
chronic disease), the fund for the next months will be free until his sons turn to 18 years old.
In addition, Encik Ibrahim Yaakob can also buy Medic Save Rider Plan. Medic Save Rider is
designed to provide protection for Hospitalization & Surgical complete, the more benefits and
card-entry without difficulty that will facilitate admission procedures to hospital. Medical and
health Takaful policy usually will provide protection against disability resulting from disease or
accidents. It also covers the risk of chronic disease such as diabetes, kidney disease, cancer,
Alzheimers or heart problems. For example, if his son injured from accidents or suffer from
chronic disease, the medical card will help him to cover the medical costs include of surgery
cost. So, Encik Ibrahim Yaakob doesnt have to worry about any medical possibilities that lie
ahead.
Moreover, Encik Ibrahim Yaakob may open savings account or invest for his sons. Considered
basic financial tools, the savings account is beneficial for keeping his money safe while
preparing for the future. By doing that, Encik Ibrahim Yaakob is able to do saving for his sons
for the future needs. For instance, he saved and invests in an ASB account for his sons. He may
put some fixed amount of money in the ASB account for his sons future. Otherwise, Encik
Ibrahim Yaakob also able to get dividend and bonus at the end of the year. Thats how he
developed the money invested.
Lastly, if Encik Ibrahim Yaakob had a business, we suggest him to buy a business or investment
plan. Business or investment plan is to protect the wealth for his family if anything happens to
him. This plan can also provide a return of 10% for every 2 years, although Encik Ibrahim
Yaakob healthy. In addition, he also able to enjoy the saving even though the certificate has
expired. For example, if Encik Ibrahim Yaakob also able to get the opportunity to start

investment for future while having free protection. Let say he contribute RM577 per month, so
he will get RM50K for free protection.