Financial Planning Overview

The overall purpose of financial planning is to achieve personal wealth which includes accumulation of wealth, conservation and finally, distribution of wealth.

Financial planning enables you to identify your needs and goals and what you need to do to address and achieve them. After understanding your current position and where you intend to go, we make recommendations on which products from our portfolio would best suit your objectives. Our product range includes life cover, disability cover, general savings, and illness cover. Read more on Financial Education.

Step 1 - Assessment

Financial planning is a process which begins with the collection and assessment of all relevant financial data. This includes income, expenditure, debt, savings and disposable income.

Step 2 Goal Setting

Goal setting is a powerful process for personal financial planning. We take you through the goal setting process and then work towards your personal and financials goals and objectives. We also take into consideration your needs and finances at that particular time and in the long term.

To learn how to set effective goals please visit the Effective Goal Setting section. You can also visit the Life Circumstances section which sets out what financial solutions you should be considering at different stages in your life.

Personal Financial Planning In Action

The freedom of Personal Financial Planning allows you to buy only what you need and leave aside what you don't. Here are two examples of how Personal Financial Planning can be applied in different situations.

Example 1 - A female who is single and in permanent and full-time employment

Wanjiru is an auditor for an audit firm. She is not married, has no children and is aspiring for partnership in the audit firm. The audit firm has taken out sufficient life cover for her. Since she doesn’t have any dependants, she doesn’t need to add more life cover. She however has concerns about becoming impaired or contracting an illness.

She therefore chooses to take the Physical Impairment Benefit and the Severe Illness Benefit should she suffer from an illness or become physically impaired. During her working life, she has put in place adequate investments, so she has chosen not to add the Savings Benefit.

Example 2 - Mr. and Mrs. Njoroge and their children Wangari and Mungai

Mr. Njoroge is a lawyer with his own practice. Mrs. Njoroge is a lecturer at the Nairobi University. Wangari and Mungai are students at a local primary school. Mr. and Mrs. Njoroge are planning to buy a family home and have decided to plan financially for their family. They plan for the Death benefit, where both Mr. Njoroge and Mrs. Njoroge are lives covered. Each partner appoints the other as a beneficiary for each of the death benefits together with their children Wangari and Mungai.

Wangari and Mungai will hopefully join the Nairobi University in a few years' time, so they add two separate Savings Benefits, one for each child, to help provide for their education costs. Just in case either of them gets disabled during the duration of the contract, they add the Premium Protection on Disability Benefit to ensure that premiums are paid in this event.