Taking a disability or critical illness insurance policy. The first step in building a financial plan is to make a provision for any emergency need. These emergencies could be an accident, illness or unemployment. Death is a certain events but it is also an unpredictable events. To protect dependents from the unpredictability of death, life insurance is a must.
Predictable needs are capital appreciation or investment planning.
The other important predictable need is saving for retirement. Predictable needs also include saving for a house, children's education and children's marriage, or other special needs. When you retire, you should have a pension plan that pays atleast two thirds of your pre-retirement income, every month. The rule of the thumb is that when you retire, you should have a pension plan that pays atleast two thirds of your pre-retirement income, every month. Employee benefits and tax considerations play a very important role.