Rich People Don’t Need Life Insurance?!

Really? Who says rich people don’t need life insurance? Would it surprise you to know that wealthy people are some of the biggest buyers of life insurance in the world. Would it shock you to know that they even borrow money to buy huge amounts of life insurance for tax reasons? Maybe they know something that the average person does not.

For most people life insurance buys peace of mind for their family’s future… to help pay funeral costs, or make sure a spouse can pay off the mortgage and fund their children’s college education. Simple but critically important needs so that the family does not go into financial ruin. The other good news is that the death benefit from that life insurance policy is generally tax-free to your beneficiaries.

But for people who make the big bucks— who can afford to pay for all those fancy financial advisors— the stakes are much higher. The wealthy figure that if they were smart enough to make it, they should be smart enough to keep it. Call it rich man’s wisdom: How to be rich and how to stay rich.

The wealthy usually own whole life insurance policies, also called cash value life insurance. These policies accumulate a cash value, and as long as you do not withdraw that cash, this value can grow tax-free until you withdraw it. If you wait until retirement to receive it you will likely be in a lower tax bracket so you will keep more of your investment.

One thing you can be sure of is that the wealthy HATE to pay tax. Especially after they’ve accumulated wealth and paid tax their entire life, it really irks them to know that if they die and leave it to their children their kids will pay big taxes to get it… in their minds it’s like letting the government double-dip!

This is not my viewpoint… it’s just the way it is. There’s been a lot of controversy over the estate tax issue in recent years, the same type of controversy you see between political parties. You can’t control whether or not to pay tax but you can literally buy those tax ringgit, often for sen on the ringgit, through the use of life insurance.

So, granted none of the heirs of wealthy people are likely to be in the poor house, but they sure don’t want to bequeath that money to the government if they can avoid it. That is why they have learned how to use life insurance for a fraction of their own hard-earned dollars.

You might not have millions of dollars in the bank but you should learn about the power and value of life insurance for your own financial picture. Take a couple of minutes to save some money by getting a FREE  life insurance quote now…it is more affordable than you think.

Your financial statement might be more modest but your desire to protect your family’s future is the same as that of a rich man’s. What do you think? We’d love to hear your thoughts on death (regarding life insurance of course) and taxes. Your turn to jump on the soap box!

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Malaysians Living Longer and Enjoying It More

For many years, Malaysia has focused on 2020, when the nation hopes to reach fully developed nation status. Then, not only will Malaysia be a different country (in terms of opportunity and per capita income), we will be living longer to enjoy it -- truly the best of both possible worlds.

Life expectancy for Malaysian women is expected to jump to 79 years in 2020, up from 77 years today, while Malaysian men could expect to live until 74.2 years, up from 71.9 today.

Life expectancy is largely a reflection of the overall quality of life in a nation. In the 1960s, average Malaysian life expectancy was around 54 years. But advances in medicine, better nutrition and more expendable income have contributed to a longer lifespan.

Our longevity numbers place us near the top third of all nations in life span, and suggest that we're on our way to becoming an aging nation.

What happens if we live too long? 

As we live longer and healthier lives, we risk outliving out assets. We could end up in poverty, relying on the government or family to cover our basic living expenses. Or we could become ill and incur unexpected medical costs that quickly deplete a lifetime of savings.

1. How will your assets hold up if you need to dip into them for a critical illness or long term care?
2. What options are available to you for emergencies?

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Why Buy Insurance For Parents?

There comes a time in every parent-child relationship where the roles reverse, where the parent becomes the child and the child becomes the parent. And when that change takes place, part of your responsibility is to make sure that your parents have a sound plan in place for the inevitable day when they are gone.

Buying life insurance for parents is not an easy thing to do, but it's important and necessary for so many people. Some children buy life insurance on their parents in order to make sure that there is enough money to pay for burial or final expenses when their parents die. Others buy life insurance on their parents in order to create or preserve an estate that can be passed along to surviving children.

Getting your parents Medical Insurance also help you, as children, in avoiding financial difficulties. Imagine your parents need RM100,000 for medical bill and you have another 2 siblings. If all siblings are working and have the ability to earn, each would have to fork out RM33,333.

What happens if your spouse disagree?

What happens if not all siblings are working and earning money?

Regardless of your reasons for needing to buy life insurance for your parents, one thing that most insurance companies will look require before issuing a policy is called "insurable interest." In the most basic sense, insurable interest is proof that, should your parents die, you would suffer some kind of financial loss. This requirement protects insurance companies from issuing policies that are taken out by children who simply think that their parents may not have long to live and create a fortune by purchasing big life insurance on them.

Once it has been established that you do in fact have an insurable interest, you need to choose the type and amount of insurance coverage to purchase.

Another consideration should be your parents' current health status. It can be difficult, even at a younger age, to purchase life insurance if you have serious medical conditions.

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Why Children Need Health Insurance?

Did you know . . .

That children without insurance are less likely to get care for such things as ear infections which can lead to lifelong consequences like loss of hearing?

That children with insurance are more likely to be healthy and that healthy kids do better in school?

That children with insurance miss fewer days from school and because of this their parents also miss less time from work?

That healthy children still need check-ups, shots and regular dental care so they can stay healthy?

Most importantly, when you decide to get your children Life / Health Insurance, you directly guarantee his or her future insurability.

If he or she diagnosed with diseases during young, he or she may not be insured in the future anymore. Thus, getting him or her insured at young age will directly guarantee his or her future.

Contact us for a FREE quotation for your children today!

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Top 5 Life Insurance Myths

Life insurance is not a simple product. Even term life policies have many elements that must be considered carefully in order to arrive at the proper type and amount of coverage. But the technical aspects of life insurance are far less difficult for most people to deal with than trying to get a handle on how much coverage they need and why. This article will briefly examine the top 5 misconceptions surrounding life insurance and the realities that they distort. 

Myth #1: I'm Single and Don't Have Dependents, so I Don't Need Coverage

Even single persons need at least enough life insurance to cover the costs of personal debts, medical and funeral bills. If you are uninsured, you may leave a legacy of unpaid expenses for your family or executor to deal with. Plus, this can be a good way for low-income singles to leave a legacy to a favorite charity or other cause. 

Myth #2: My Life Insurance Coverage Needs Only Be Twice My Annual Salary

The amount of life insurance each person needs depends on each person's specific situation. There are many factors to consider. In addition to medical and funeral bills, you may need to pay off debts such as your mortgage and provide for your family for several years. A cash flow analysis is usually necessary in order to determine the true amount of insurance that must be purchased - the days of computing life coverage based only on one's income-earning ability are long gone. 

Myth #3: My Term Life Insurance Coverage at Work Is Sufficient 

Maybe, maybe not. For a single person of modest means, employer-paid or provided term coverage may actually be enough. But if you have a spouse or other dependents, or know that you will need coverage upon your death to pay estate taxes, then additional coverage may be necessary if the term policy does not meet the needs of the policyholder. 

Myth #4: Only Breadwinners Need Life Insurance Coverage

Nonsense. The cost of replacing the services formerly provided by a deceased homemaker can be higher than you think, and insuring against the loss of a homemaker may make more sense than one might think, especially when it comes to cleaning and daycare costs. 

Myth #5: I'm Better off Investing My Money Than Buying Life Insurance of Any Kind

Hogwash. Until you reach the breakeven point of asset accumulation, you need life coverage of some sort. Once you amass RM1 million of liquid assets, you can consider whether to discontinue (or at least reduce) your million-dollar policy. But you take a big chance when you depend solely on your investments in the early years of your life, especially if you have dependents. If you die without coverage for them, there may be no other means of provision after the depletion of your current assets. 

The Bottom Line

These are just some of the more prevalent misunderstandings concerning life insurance that the public faces today. Therefore, there are many life insurance questions you should ask yourself. The key concept to understand is that you shouldn't leave life insurance out of your budget unless you have enough assets to cover expenses after you're gone. 

For more information, contact us for a no obligation consultation!

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Why Single Women Need Life Insurance?

If you are a single woman, chances are you haven’t given much thought to purchasing a life insurance policy. But as the head of your household, even if your household consists of just you, there are some compelling reasons why you should consider purchasing a life insurance policy.

Single Woman with No Children:

Have you ever thought about what would happen to your estate if you were to die unexpectedly? Who will be responsible for your debts (car loans, education loans, mortgage, estate taxes, etc.) if your estate does not cover these costs?

Well, chances are your family will be responsible. Can you imagine your aging parents or other loved ones who are living on a fixed income having to pay off your car, school loans and mortgage because there wasn’t enough money in your estate to cover these costs? And with the housing market still sluggish, selling a home may not be an immediate option to pay off these debts. But a life insurance policy can cover these costs and provide your loved ones with peace of mind during this difficult period. And, if you choose to remain single, your life insurance can accumulate cash value to help provide a secure retirement for yourself.

As a young, healthy, single woman, you have the opportunity to purchase a life insurance policy at reduced premiums. However, the older you are, the higher your premiums will be. Locking in a low rate for a fixed period of time is an excellent way to secure an affordable life insurance policy. One other benefit, the cash value of your insurance policy can also be used to secure loans.

Keep in mind, that should you decide to get married and/or have children, your life insurance needs will increase. Re-evaluating your policy with each life change is a smart move.

Divorced and Widowed Single Moms:

Did you know that only 4 percent of all life insurance policies sold in 1997 were purchased by divorced or widowed women (“The Women’s Market: Myth & Reality,” LIMRA International, 1999)? This startling fact means that a majority of the 11 million single moms in the U.S. today are without life insurance. 

As a single mom, if you do not have life insurance, you run the risk of not having your children’s basic needs met should you die unexpectedly, especially if there is not a father in the picture. (Note: In addition to providing for your children’s college tuition and living expenses, single moms may need to factor in additional expenses such as child care and domestic help that a life insurance policy could cover).

The Amount of  Life Insurance You Need is Determined By:

• Your age
• Debt
• Whether or not you have children
• The number of children you have
• The ages of your children
• Your overall health
• The amount of money your family will need to survive

What Type of Life Insurance (term, whole life, annuity, etc) Should You Purchase?

Ask us for policy options, terms and conditions, premiums and the ability to change your policy should you have a major life change such as getting married and/or having children. But before you do, spend some time educating yourself on the types of policies available and become familiar with the terminology.

Contact Us Today!

Adapted from : http://singlemindedwomen.com/money-tips/why-single-women-need-life-insurance/

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Who Actually Need Insurance?

Majority of the society think that they belong to a group of people that does not need insurance.

The rich will always think that only the average or poor need insurance as they are not afford to pay for medical bills and etc.

The average / poor always has the perception that only the rich need insurance as they can afford to buy it.

Actually, doesn't matter if we are rich or average or poor, we all need insurance because insurance plays its respective role to the rich and the average or poor.

The Rich

If you are rich, I am pretty sure that you have a lot of property and money. You may also have a very high income and be able to afford many things for yourself and your family.

But, did you realize? If you were diagnosed with critical illness last night, your family will need to sell your property(ies), and use up all your savings just to pay your medical bills?

Not only your property will be sold in a cheaper price due to urgency, the time taken for the deal to be sealed can be frustrating! Thus, it may not be enough for your medical bills and will cause your family to go poor and end up borrowing money from others.

With insurance, you do not need to use up your savings or sell your property to pay for your medical bills. Living expenses for you and your family during the time when you are not able to work can also be provided by insurance.

In another words, your family will not suffer, lose their property and income.

All you need to do is to "transfer" small part of your income to insurance so you can protect the rest of them.

The Average / The Poor

For the average / the poor, not only your income is just enough for your daily expenses, you might have other commitments too.

And did you realize? If your income is just enough to cover your daily expenses, what will happen if you are diagnosed with critical illness yesterday and you lose the ability to earn money anymore? What will happen to your family and your children (if you are married with kids)?

Well, you can send your children to orphanage but the fact is, many orphanages in Malaysia also need funding from the generous!

Won't you feel guilty to let your children, that you loved so much, live in a tough environment and perhaps being marginalized by others due to lack of money?

Very obvious, with insurance, you are able to "create" your life saving fund and perhaps some inheritance immediately, although your income is not high.

It doesn't matter if you are diagnosed with critical illness, paralyzed or passed away,  your responsibility to take care of your family can be accomplished.

Try to adjust your budgeting a little bit so you can at least get minimal insurance coverage to protect yourself.

Even though the coverage is small, the benefit from insurance will mean a lot to your family because it proves that your love stays on even though you are not around. Your love for your family will always be in their heart.

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Private Hospitals in Malaysia

According to Association of Private Hospitals of Malaysia (APHM), there are 106 private hospitals in Malaysia that has registered as their member. I am sure there are a few that are not registered as their member.

Source : Association of Private Hospitals of Malaysia

Number of Private Hospitals that are registered with Allianz Life Insurance Malaysia Berhad as Panel Hospitals is 106 too.

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Critical Illness Coverage - How Much Do You Need?

After discussing the issue on Medical (Hospitalization & Surgical) Insurance, we come to another popular type of protection - Critical Illness Coverage. Some may call it, 36 Critical Illnesses Coverage, Dread Disease Coverage, and many more.

Before we go even further, let's clear the air up so the confusion does not prolong.

When it comes to Health Insurance Protection, many are confused or even misunderstood with the differences between Medical Insurance Protection & Critical Illness Protection.

When asked, "Does your policy has Critical Illness coverage?"

The answer will be, "Yes, got cover..."

But the moment when we start reviewing their policies, we found out that there isn't any coverage on Critical Illness.

The most common confusion or mistake is that many thought that Critical Illness Protection means when they are diagnosed with any one of them, their treatment fee will be taken care of. Yes, that is right when you have Medical Insurance.

However, many has forgotten that Medical Insurance only pays the hospital (treatment fee). What about your living expenses after that? Most probably, you will lose the ability to work after diagnosed with Critical Illness. You need money to settle your Mortgage Loan, Car Loan / Hire Purchase, Daily Expenses (Food, Clothing and etc). Who is going to finance them when you lose your ability to work / ability to earn?

Critical Illness Protection

This Protection is somewhat like a Russian Roulette with 36 choices of Critical Illness. Hit any one and you will "win the reward" with the jackpot amount. Say your Critical Illness Sum Assured is RM500,000, that will be the amount you will be compensated when you are diagnosed with any one of the Critical Illness (Terms and Conditions apply). You will receive a cheque with the full amount!

If your are only insured for RM20,000, then that's too bad. Depending on the severity of your illness, it is not going to be enough. But RM20,000 is what you going to get to get through, if you ever get through at all!

There are 36 types of Critical Illnesses. Let's take a glance at them.

Source : www.allianz.com.my (HealthCover / HealthCover Plus)

Now comes a question - How much do I need?

There is no definite answer for that question. 

"You need RM1 million for your Critical Illness Protection," your Insurance Consultant will tell you.

However, my way to help you (at least) determine how much you will need is rather straight-forward.

Say you have a premonition (A strong feeling of something about to happen, esp. something unpleasant) that you are going to be diagnosed with one of the Critical Illnesses. However, when you woke up from that vision, you didn't see which illnesses you are going to be diagnosed with! Good news, at least you saw it coming before it happen, unlike your neighbour who died of stroke with no warnings and NO insurance!

So, you quickly call up your Insurance Consultant and ask her to come to your house right away. While waiting, you try very heard to search your memory to see if you can find traces of information about which illnesses you are going to get. 

Your Insurance Consultant arrives and you told her about your premonition and she asked you to sign on the dotted lines. Trust me, your Insurance Consultant will look very surprised that you called to get protected!

Then you suddenly thought what if your premonition isn't true?

What if you spend all your money on Critical Illness Protection and it did not happen? 

You are now stuck in a dilemma! But you finally made a decision to get as much coverage as you can afford so you will not need to change your family's lifestyle.

What if your premonition is true? Then you have to make sure your Critical Illness Protection has at least 5 times your annual income (if you are single) or 10 times your annual income (if you are married with children), simply because of the followings:

i) Daily expenses for at least 2 - 3 years in case you are not able to go back to work.

ii) Your outstanding Mortgage Loan Repayment / Car Loan or Hire Purchase Repayment

iii) Extra money to cover your spouse's income as he or she may need to opt for a job with lesser workload to take care of you. Less workload means lower income.

iv) Post Hospitalization Expenses / Traditional Chinese Medicine / Alternative Treatment - You can't be jumping up and down actively right after you discharge from the hospital. The term "critical" means no joke ya! Chances are, all these expenses may cost as much as your hospitalization bill.

Finally, after thorough consideration, you finally made a decision to get as much Critical Illness Protection as you can afford. At least an amount that will not affect your current lifestyle (if your premonition did not come true) and to have at least the protection that can help to ease you and your family (if your premonition is true).

Hope the above guideline can help you to make a better decision in determining how much you need in your Critical Illness Protection risk management portfolio.

Contact Us for a No Obligation Consultation!

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留爱,不留债 Leave Love, Don't Leave Debt

Recently, I came across a TV ad from a French insurance company.

I like the storyline as it is very true and touching.

Note: It is based on true story

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