INSCRIPTIONS 14WALL 3 PANEL 2

HIGHLIGHTS OF THIS ISSUE:1) CAPITAL NEED ANALYSIS PART 12)MR NIKHIL ANANDPARA TALKS ABOUT THE PROFESSION OF

LIFE INSURANCE AGENCY

AND THE SCULPTOR INSCRIBES SHOWS THE KNOWN RULES THAT GOVERN OUR LIFE AND HOW THEY MAKE LIFE VERY SIM-PLE.

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TITLES SPACE FOR P.NO

Sculptor Inscribes RG 2

Gurus speak Faculty Members’ space 15

Caterpillar Space Students and Trainees 32

News Channel Happenings at Gopast 36

Inscriptions 14

RULES RULEPLAY BY IT AND RULE THE

WORLD

RULES RULEPLAY BY IT AND RULE THE

WORLD“RULES RULE”

Our Life is both simple and complicated

Simple because it is governed by known rules. Complicated because we don't re-spect the rules.

When we are playing a game, if we know the rules thoroughly it helps. If for some reason we do not know the rules then the game can be very confusing. We might be thinking that we are win-ning but we find that in fact we are los-

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R.GOPINATHgopinathr@go-past.com

ing. We will not be able to prepare our moves forward, because we do not know if they are within the rules or will they be considered foul.

When we know the rules well it makes it easy for us to plan and win. The life’s rules are clear in the open. They are there wide in the open for everybody to know. They are not hidden. They are not coded, that only the specialists can decode and understand.

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What are those known rules?

1.The rule of cause and effect

2.The rule of equality. There are no con-cessions, no one is special.

3.The rule of Time

4.The rule of nothing is permanent.

5.The rule of freedom and responsibility.

Rule no:1 The rule of cause and effect:

This rule is very simple to understand, and all our scriptures have repeatedly stressed on this. In simple terms “As you sow, so you reap”. That means all your actions are bound to produce the results that they are bound to. For example if our deeds are bad, we will get pun-ished. If our deeds are good, then we will be rewarded. If we want a particu-lar result then we have to put in efforts to achieve it. If our efforts are adequate and correct then we get the results that we wanted. If our efforts are inade-

quate or incorrect, we will get partial re-sults are no results at all.

A sales person wants the meeting to go well, so he prepares well. He studies various possibilities, gets prepared for that. Does research about the client and his business. Anticipates likely objections and gets his charts and tables ready to support his logic. The meeting goes well.

Look at another situation: The sales per-son wants the meeting to go well, but, the previous night, got stuck with his friends in a party, not able to cut it short

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and come back late in the night back home, hurriedly prepares some slides and notes. The meeting did not go well. He tried to make good the lacuna in ef-forts by his talents, but still it was falling short.

A farmer works in his field. He does all that is expected of him and he reaps a good harvest. Let us say that year the rains were not adequate, then what hap-pens?

Within that situation his results will be equal to his efforts. The same with the sales person in situation 1. Let us say

inspite of his best efforts, the sale did not happen because of a sudden finan-cial crisis that the economy was under-going then. Even then within that situa-tion his results will be equal to this ef-forts.

These failures do not indicate that the rule of cause and effect is wrong or that it only works at times and not all the while. Such an interpretation is false. Without that efforts the results could have been disastrous and not just a failed attempt.

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Imagine that there is invisible score board, keeping scores of all your ef-forts. You do not know how much it takes to win, but as you keep scoring, you are bound to win.

What about people who haven't put in as much efforts as you might have, but still have achieved their goals? It is simi-lar to an OD (Over Draft Account facil-ity) in a bank. Must be repaid with inter-est. So let that not become a model to be followed.

It is not only the volume of efforts it is also about correctness. What is correct

is correct and what is wrong is wrong. No justifications are valid for a wrong deed. There was a great saint and poet by name Thiruvalluvar who lived about 2500 years before. He created an epic called “Thirukural” which contains 1330 couplets. One of his couplets goes like this, “ Whatever we have acquired by making others cry in pain, will go away from us and while leaving will make us cry in pain. Even if we have lost some-thing which was acquired rightfully, that loss will ultimately turn into good later on.”

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Rule no: 1 The rule of cause and effect, makes life so easy. Otherwise, how con-fusing this life can be?

Rule no: 2 The rule of equality. There are no concessions, no one is spe-cial:

The fire, the water, the soil, the sky and the air are common to all. The resources behave with everyone in the same way. The market is common to all. Economy is common.

This means that we can not claim any special favour, nor can anyone else. In social systems and political systems it might appear that some people are par-doned, some people get special privi-leges. But in life that does not happen.

No one is spared. It doesn't matter which race one belongs to, or which country one is born in. It does not even matter who his parents are. Not even if he is rich or poor. No one gets any spe-cial treatment. The nature does not spare anyone, nor does it blesses any-one excessively. Take an example of floods hitting a village. Rich, poor, big,

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small, young, old all get affected. When there is a war, or any catastrophe no one is spared.

Some people do wrong things. They cause pain to others. They acquire money in wrong means. They do not pay the taxes due. But they go to tem-ples, places of worship and pray. They donate a lot to the temples and to their religious heads. They read scriptures, they act very piously. They hope they will get some concessions because of this and God will be kind to them, and they will get less punishment if at they might even get it. But the truth is that

they are not spared. Our conscience tell us what is correct and what is wrong. Lis-ten to it and act. Never ever do some-thing which is wrong. Doing wrong and hoping to escape punishment is like eat-ing unhealthy food and hoping that we will not be affected by it. Evil deeds will result in extreme pain for self.

In the same way when someone be-comes deserving for a fortune, it reaches him. If he is not eligible then he doesn't get it.

Well then we all get a level playing field then.

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Rule no: 3: The rule of time:

Time is the most valuable resource. But by itself it does not carry any value. It gets its value by the way we use it. The qualities of this resource is universally the same. Time is not storable, Time is not transferable and above all, time is ir-reversible. What has gone has gone and can never be brought back. This ir-reversibility is what makes is so pre-cious. That means none of our alter-nates can outsmart us on this aspect. For example, after the match is over,

they can not erase the ending, however influential they may be. And what we have achieved also can never be erased. This aspect gives finality to all ef-forts.

Rule no: 4: The rule of nothing is permanent:

Our difficulties are not permanent. The storm goes away, does not stay. Crisis passes off. The same way our successes also. So let us not allow these successes to develop vanity in us. Let us not be-

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come egoistic and feel invincible and in-fallible.

When faced with setbacks let us remem-ber even this is temporary. Economic cri-sis are temporary. Political crisis are tem-porary. This feeling will give us the cour-age to persist with our ventures.

Rule no: 5: The rule of freedom and responsibility:

We all have been given the freedom to choose our responses and the freedom

to take initiatives. We are responsible for our being. Some may not have proper education, some may not have wealth, some may not have positions to boast of, but every one has this freedom to choose. We can choose our goals. We can choose to pursue our dreams. We have the freedom to decide, not to pursue our dreams. In every situation, however worst or best it may be we will have the choice of our response to it.

Human beings can choose, animals can not. Animals have preconditioned minds. If a cat is sitting and a rat passes by, the reaction is certain. It will pounce

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instantly. It is conditioned that way. In a forest we have Deers and we also have Lions. The deers have strong, sharp and beautiful horns, and they also have springy legs. If they hear a lion coming close by, what will they use? horns? or legs?

Invariably, legs. There can not be any other reaction. Have you ever heard of a Deer standing up to the lion and chal-lenging it, it with its horns instead of flee-ing away with its legs? No, Never. But you would have heard of human beings doing exactly that.

David stands upto Goliath. The whole village runs, scared of that giant, but David challenges him. The villagers say, that Goliath is so big, that he can not be hit. David says that Goliath is so big, that he can not be missed while hitting. He hits. Human beings can choose and this is the super power that makes us a superior being.

Once upon a time there was a king. One day as he was hunting in the for-est, he came across a poor farmer. The farmer had nothing to eat and was starving. The king took pity on him and took him to the town and gifted him a

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few acres of sandal wood forest. The farmer accepted the gift with lot of grati-tude and thanked the king profusely. Af-ter about six months, the king passed by the farmer’s place, he stopped to find out how the farmer was doing.

He saw a person, who was in rags and he had stains all over his dress, and he was carrying a back coloured sack on his back. The king stopped him to en-quire about the farmer, and that man re-plied he is that farmer who accepted the sandalwood forest from the king. So the King asked, “ Then why are you like this? what happened to all the sandal-

wood?”. The farmer replied, “Oh, mighty King, i burnt all those sandal-wood trees and made them into coal and i am now selling coal. With your kindness, now i am able to have full three times meals every day.”

This life is governed by known rules. That makes it easy for us. If we are play-ing a game where we do not know the rules, it can be quite frustrating and de-spairing. But fortunately we all know the rules that govern this life, so let us play by it and win over.

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Why do people who still know the rules but they do not respect it and yet expect to win? Let us examine the power of emotions that drags humans away from these rules, in the coming issues of “In-scriptions”.

What are those known rules?

1.The rule of cause and effect

2.The rule of equality. There are no con-cessions, no one is special.

3.The rule of Time

4.The rule of nothing is permanent.

5.The rule of freedom and responsibility.

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CHAPTER 2

GURUS SPEAK

WEALTH THAT LASTS FOREVERPART 9

R.GOPINATHgopinathr@go-past.comwww.go-past.com

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8 Governing principles:

1) If a person adopts the formula “Income - Expenses = Savings” then he can never become wealthy. The correct formula is “Income - Savings = Expenses.

2) Regularity is the key to wealth. (The key to wealth is not the ROI, IRR, CAGR etc)3) Start early and reach safely.4) Gold and greed can never stay together.5) Purpose must decide the choice.6) Financial Pyramid7) Draw the map before you start the journey.8) Professional support helps.

WEALTH THAT GROWS AND LASTS FOREVER

PRINCIPLE NO: 6

“FINANCIAL PYRAMID”

“PROTECTION- THE FOUNDATION”

gopinathr@go-past.com

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In the previous issue we had discussed about the bottom of the financial pyramid, being protection, and the reasons for the priority given to this as-set in the pyramid. We concluded the last issue by saying we will now quan-tify that need.

How much life insurance should a person have? There are broadly three methods to estimate this requirement. 1) Capital Need Analysis, 2) The Hu-man Life Value and 3) The Net Worth method.

1) Capital need analysis (Working capital provision) Method:

Just like any business has a cash requirement for providing Fixed Capital and Working capital, a family also needs cash to provide for these two capi-tals in the family. If Plant, Machinery, Land etc constitute the Fixed capital of business, then House, Car, One time Big expenses on Education or Mar-riage constitute FC of the family. Sample of Working capital is given here below:

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Look at the example below of a family. Mr RK’s family

In the present times Mr RK’s family are used to spending 12,00,000 per an-num. This is made possible because of Mr RK’s income.

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Please look at the relation between the income of a person and the life styles the family enjoys or gets to live in:

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The red colour line in the chart indicates the income of a person. The green colour dotted line indicates the income which usually a person will dream of to earn for his family. The upward diagonal purple lines in the chart indi-cates the amount of money spent for the levels of life that the family en-joys (or required to enjoy). Look at the right hand side ribbon on the chart. The first purple line shows the money required for the family to live an aspi-rational level of life the next purple line below it shows the money required to continue the present level of life that the family is used to (accustomed to). The next purple line below that is the level of money required for an ad-justable level of life. The family can somehow manage with this level even though it is below what they have been used to all these days. And below that is act purple line which shows the money required to live life at a mini-mum level.

Please trace the income line in the graph. If the income available is more than the aspirational level then the family is in an ideal situation. And in the same lines, if the income available is more that the used to level then the family is in a comfort situation, When the income happens to fall below the used to level the family gets into a discomfort situation and if the in-

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come further drops and goes below the adjustable level, the family is left to undergo a painful situation. If for some reason, the income dips below the minimum level required to sustain the family then the family is pushed to a disastrous situation.

If we place Mr RK’s family into this graph and also match the working capi-tal requirement of the family, it will appear like the table given below. The amount of working capital that the family is used to is 1,00,000 per month. If we assume that the family can, if the situation so demands can adjust for a lesser amount at 80% of the used to level, then they need 80,000 per month. Assuming 50% is the minimum level then 50,000 per month and if Mr RK aspires to provide an ideal life style then it could cost around 1,50,000 per month.

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The last column in the table indicates what amount of liquid capital or Cor-pus the family should have so that in case of the stoppage of income of Mr RK, @6% will be able to provide an amount required to provide life style of various levels. This Corpus will be amount of Insurance Mr RK will require right now. Ofcourse from this figure we can reduce the amount of cash or cash equivalent assets or the insurance cover he has already acquired and make a recommendation for the balance amount.

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Prof Solomon S Huebner is known as the father of insurance science. He says:

“The family should be established and run on a sound business basis. It should be protected against needles bankruptcy”

“Why is it not fully as reasonable to have a life insurance policy accompany a marriage certificate, as it is to have a marine insurance certificate invaria-bly attached to a foreign bill of exchange?

The voyage in the first instance is, on the average, much longer, subject to much greater risk, and in case of wreck, the loss is of infinitely greater con-sequence”.

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Imagine what happens to businesses which have adequate fixed assets bought out of its capital funded by the promoters, but not having adequate cash to take care of working capital? You are correct, the business folds up. The fixed capital is not fully getting used or leveraged.

An Airlines having big planes, but not able to pay the crew, will end up hav-ing all those big planes parked on ground and depreciating in value without usage. The same can happen with a family that does not have enough money for capital, but has big house, car etc.

Life insurance will ensure that the family continues to enjoy the usage of all fixed assets, and no need of diluting them. That is why heads of families who are so eager in keeping on increasing the fixed capital of the family, should equally focus on providing for the working capital as well.

While most of the times fixed capital requirements are arranged through bank borrwings, Working capital requirements are funded through the earn-

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ing capacity of an individual. In that case look at the risk the family is put into depending on the contribution of a person to his family.

WHEN A PERSON’S INCOME AS A RATIO TO THE OVERALL INCOME FLOWING INTO THE FAMILY IS >90% THEN THE FAMILY IS IN A VERY HIGH RISK ZONE.

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IT IS THEREFORE ELEMENTARY THAT THIS RISK SHOULD BE TRANS-FERRED AND SHOULD NOT BE RETAINED.

LIFE INSURANCE PROVIDES THAT RISK TRANSFER MECHANISM.

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CHAPTER 3

CATERPILLAR SPACE

THIS SPACE IS MEANT FOR THE STUDENTS OF GOPAST

BE OUR GUEST- PERFECTING THE ART OF CUSTOMER SERVICE

MR NIKHIL ANANDPARA

nikhilanandpara@gmail.com

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Be Our Guest – Perfecting the Art of Customer Service

When you hear the words “Walt Disney Company”, what do you think? For most people it conjures up all kinds of wonderful associations- magic, creativity, wonder, imagination, joy and excitement. Indeed, that name is so widely recognized that people usually focus on is the “Walt Disney” part and forget that Disney is still a major company.

Michel Eisner, the chairman of the Board of the Walt Disney Company, will tell you that the Disney companies are “a work in progress”. In the latest Disney Shareholder’s report, you will see that Disney is the third largest media company in the world. The Disney companies employ over 125,000 people worldwide. Walt Disney World in Orlando Florida is the largest single on site employer in the United States and it operates every day of the week, year round. It is run by a work force of over 55,000 “cast members’ Disney always refers to its employees as cast members. To get a better perspective it is twice the size of Manhattan. Last year Disney’s reported reve-nues were in excess of $8.38 Billion dollars. What is the energy that powers Disney World.... one word .....Magic!

Even though the organization has grown well beyond Walt Disney’s early visions, the fundamentals for Walt Dis-ney’s success still ring true today. They are:

You build the best product you can.

You give people effective training to support the delivery of exceptional service.

You learn from your experiences;And you celebrate success.And finally ...you never stop growing and you never stop believing!

What I would like to do now is share with you a little bit more of the magic of the living values of permanent life insurance. Anaheim, California, the birthplace of Disneyland and ultimately all that has become the Disney enter-prises today. Yet, how many of you are aware that if it weren’t for the cash values in permanent life insurance,

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Disneyland might never have been. Few years ago, Top of the Table was held at Disney World. As part of that meeting, a book was given entitled “Be Our Guest – Perfecting the Art of Customer Service” which is published by the Disney Institute. It is a marvelous book and I recommend it to you because so much of what the Disney or-ganization espouses is also incredibly important to what we do on a day-to-day basis. According to the book, in the late 1940s Walt Disney had come up with the idea for Disneyland. The problem, he wasn’t dealing with vision-aries. His brother, Roy, held the purse strings of the Disney organization. Walt went to him with the idea of Dis-neyland, but Roy did not want to let Walt have the money for a “venture like that”. He felt that it was far too risky for Walt to go out and do something that nobody else had done before. But Walt was a visionary and in es-sence said “I’m not going to listen to you”. He started approaching banks for his project but was rejected by 300 banks, he didn’t stop there. Walt sold his vacation home in Palm Springs and he was still short of money when he came home and was thinking what else he can do. He opened his cupboard and found insurance policies from which he borrowed the cash value from his life insurance to form what we know today as Disneyland. So, when we tell our clients that life insurance and the cash value in life insurance is there not only in the event of death, but also for either emergency or opportunity, you can point out this example. Without that money, we might not have Disney Land.

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CHAPTER 4

NEWS CHANNEL

PALM LEAF HAS NEW ADDITIONS NOW

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PALM LEAF NEXT RENEW-ALS ACCEPTED ONLINE

WITH 3 OPTIONS:

1) ONE YEAR RENEWAL

2) THREE YEARS OPTION

3) FIVE YEAR OPTION

ADDED NOWHAND BOOK OF INDIAN INSURANCE STATISTICS 2014-2015

COMING UP:

AUDIO VERSIONS OF “MY RESOURCES”, SO THAT THE SUBSCRIBERS CAN PULG IN AND LISTEN IF THEY PRE-FER THAT TO READING THE RESOURCE MATERIALS

DEVELOPMENT OFFICERS PARTICIPATING IN THE “SUPER SIXER COURSE AT KOLKATA”

SUPER SIXER COURSE EXERCISE ON RECRUITMENT OF AGENTS

SUPER SIXER COURSE EXERCISE ON RECRUITMENT OF AGENTS

30TH BATCH OF MISSION MDRT SESSION AT CHEN-

DR. ANDAL AND DR BHASKAR’S TEAM AT NELLORE DURING THE REGULAR MONTHLY ROOTS FOR GREATNESS SESSION

ROOTS FOR GREATNESS COURSE PARTICIPANTS AT MALAD MUMBAI