Code & Course: DPA 10203 Personal Financial Management
Title: The importance of insurance & the financial
responsibilities of getting married
Lecturer’s name: Madam Nur Riana Abdul Rahim & Sir Rizal Bin
Programme: Diploma in Secretarial Science
Session: 2 2021/2022
The members of Group 5
1. Nurul Fatihah Binti Azman
2. Eugenia Ruth Empiang Anak Geraldson
3. Isabella Anak Manggie (20DSK21F1039)
Here we would like to express our appreciation and thanks to our lecturers, namely
Madam Nur Riana Abdul Rahim & Sir Rizal Bin Rejli for giving us guidance in
completing this ebook assignment so that it can be successfully implemented . Your
patience in giving guidance is very much appreciated. We are grateful to have been
given the opportunity to complete this ebook assignments during this semester. We
would also like to thank our parents for always supporting us in concentrating in
completing the assigned tasks. Their sincerity is very much appreciated by us .We
will not forget to thank to the group of friends too, namely Nurul Fatihah Binti
Azman, Isabella Anak Manggie and I Eugenia Ruth Empiang Anak Geraldson for their
good cooperation and always sharing ideas in completing this task. Indeed, the
experience and the knowledge that we have gained is so meaningful to us. Thank you.
The contents of this ebook
1. a)The importance of Insurance (Introduction) Pg.4
b)The importance of Insurance Pg.5
c) Types of Insurance Pg.6
2. a) Financial Obligations Pg.7
b) What is Obligations Pg.8
c) Understanding Obligations Pg.9
d) Obligations & Personal Finance Pg.10
e) Financial Obligations In A Wedding Pg.11
3. a) The Responsibilities of Married Couple Pg.12
b) The Responsibilities of Married Couple(Introduction) Pg.13-pg.14
c) The Responsibilities of Married Couple From Different Aspects Pg.15
d) The Responsibilities of Married Couple Pg.16
4. Conclusion Pg.17
5. Reference Pg.18
The importance of
The world we live in is full of uncertainties and
risks. Individuals, families, businesses, properties
and assets are exposed to different types and levels
of risks. These include risk of losses of life, health,
assets, property, etc. While it is not always possible
to prevent unwanted events from occurring,
financial world has developed products that protect
individuals and businesses against such losses by
compensating them with financial resources.
Insurance is a financial product that reduces or
eliminates the cost of loss or effect of loss caused
by different types of risks.
5. Spread Risk 1. Provides Safety and Security to 2. Generates Long-term Financial
- Insurance facilities moving of risk Individual Resources
of loss from the insured to the
insurer. The basic principle of - Insurance provides financial support - The insurance sector generates funds
insurance is to spread risk among a and reduces uncertainties that by way of premiums from millions of
large number of people. A large policyholders. Due to long-term nature
population gets insurance policies and individuals and businesses face at every of these funds, these are invested in
pay premium to the insurer. Whenever step of their lifecycles. It provides an
a loss occurs, it is compensated out of ideal risk mitigation mechanism against building long-term infrastructure
corpus of funds collected from the assets that are significant to nation-
millions of policyholders. events that can potentially cause building. Employment opportunities are
financial distress to individuals and increased by big investment leading to
businesses. capital formation in the economy.
4. Provides Support to Families The importance of 3. Promotes Economic Growth
during Medical Emergency Insurance
- Insurance turn accumulated
- From elderly parents to newborn children, capital into productive
medication and hospitalization play important
investment. Insurance also
role while ensuring well-being of families. enables those results into
Rising medical treatment costs and soaring sustainable economic growth and
medicine prices are enough to drain your development.
savings if not well prepared. Anyone can fall
victim to critical illnesses unexpectedly.
Medical insurance is a policy that protects
individuals financially against different type
of health risks.
Travel Types of Health
Insurance Insurances Insurance
WHAT IS OBLIGATION?
An obligation is the responsibility of a
party to meet the terms of a contract
or agreement. If an obligation is not
met, the legal system often provides
recourse for the injured party.
A board may be under an Financial obligations For example, if you owe or
obligation to pay an represent any will owe money to anybody,
that is one of your financial
executive a certain amount outstanding debts or
of money upon reaching regular payments that a obligations. Almost any
certain goals, and a lender form of payment or
may have of loan interest party must make.
for a specific length of financial security represent
time, which is known as a UNDERSTANDING a financial obligation
fixed rate. OBLIGATION
Many formal financial
obligation, like mortgages,
student loans or scheduled
service payments are set
down in written contracts
signed by both parties and
establish a creditor-debtor
relationship of obligation.
Obligation and Personal Finance
1. Obligations are an important aspect of
personal finance. Every budget should first
include all obligations for which the individual
is responsible over the given time period.
2. The Financial Obligation Ratio (FOR), a
quarterly figure released by the Federal
Reserve Board that estimates the ratio of
household debt payments to disposable
income, is a useful benchmark for someone
3. Assessing obligation carefully for
2. Groom’s Family 1. Bride’s Family 3. Bride
- They have been the party
- They may pick up smaller responsible for shouldering - The bride typically pays for
for individual expenses and most of the cost associated the groom, bridesmaids,
also supplement. They may with the wedding. They may
pay for the donation of fee flower girls, attendants and
for the officiant, for the pay for the cost of the her parents. She may also
special clothing required by ceremony and reception, host a bridal lunch on after
the groomsmen. including the cake. the wedding.
FINANCIAL OBLIGATION IN
4. Groom 5. Consideration
- Each family is different and
- As a groom has traditionally may have different values
remained free from paying for regarding the weddings. Some
most of expenses related to a families will happily assume
all financial obligation of the
wedding. The groom wedding while other may not
traditionally pays for the have the budget.
marriage license and any other
fees that are associated with
becoming legal married.
of married couple
• in marriage, each spouse needs to have a role that is
recognized and valued with certain responsibilities to which
he or she is held accountable. Take time to delegate
responsibilities, deciding which spouse will take ownership
over specific tasks, areas of the home, decisions, etc.
Delegating responsibilities is a process whereby both the
husband and wife mutually agree on assigning the
responsibility for each task.
A clear assignment of responsibilities reduces the
opportunity for conflict, such as when trash day
comes around or a bill is due. Defining
responsibilities also allows you to form healthy
boundaries in your marriage. Think of it this way:
“Boundaries help determine who is responsible for
what. If you understand who owns [is responsible
for] what, you then know who must take
responsibility for it.
Income: Talk about how much The responsibilities of Expenses: What are your
each of you makes, how much married couple from recurring bills (monthly,
you hope to make in the future, quarterly, etc.) and how much
and whether one of you will stay different aspects can you expect to spend on
other necessities? Discuss your
home with future children priorities, how much you can
each spend without consulting
Investing: Whoever is more the other, and what you
confident with investing consider needs versus wants.
terminology should get the Goals: Make sure you’re on the
other up to speed, so you can same page when it comes to
speak confidently and agree on short- and long-term goals
a risk tolerance and asset and plan to reach them.
-When your spouse meets with your financial
advisor, make sure to attend those meetings, if
you aren’t already, and play an active role in
the meetings. Ask questions about anything you
don’t understand and make sure your opinions
are being heard
a)the initial cost of marriage
b)the marriage allowances
Overall, the conclusion of these topic is the insurance
is a large investment and you will most likely purchase
multiple policies throughout your lifetime. It is
essential that you know what each type of insurance
covers and how it works so you can make the best
decision about what to buy. Do not base your decision on
just what is cheapest, but look at what it provides.
Marriage can affect every aspect of your financial life.
Sit down as a couple to learn more about each of your
present financial situations and future goals and then
talk to an attorney. Consider keeping most assets and
property separate to minimize complications,
especially when you have heirs.
of-insurance (HDFC ERGO,(2021), Importance of Insurance)
in-marriage/ (Kaleb Beyer,(2018), Roles , Responsibilities &
Decision Making In Marriage)
(Team Acko,(2021),Types of Insurance)