We all have dreams and plans for ourselves and our loved ones. It may be as simple as going on a trip to Europe, or paying off your family home – we want to believe we are working towards a goal. However, are your dreams protected from the uncertainties that may lie ahead? The reality is that many households are struggling. Malaysians face difficulties servicing their growing debt. Around 50% of urban households don’t have any savings, and 20% would only be able to survive for less than three months if they lose their sources of income. So how can you financially protect your family’s dreams, even if you can no longer earn an income? Here are three things you need to do. Prioritise...
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Long-term business fixed capital: background and purpose: FA12/S137 FA12/S137 introduced the concept of a life insurance company having long-term business fixed capital (LTBFC) where the company holds long-term business assets which are structural to the business. The legislation at FA12/S137 takes effect from 1 January 2013. Prior to 2013, assets reported in the regulatory returns as ‘other than for long-term business assets’ – referred to as the ‘shareholder fund’- were, apart from a few exceptions, excluded from the calculation of trade profits. In contrast, movements in asset values within the long-term fund, and the income arising from them, were included in trade profits. A limited...
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What is the similarity between your prom dress and your insurance policies? Other than the fact that they both cost a bomb, chances are that you have long forgotten about them and more likely, kept them away in some dark corner of your home. Unlike the prom dress however, your insurance policies must be well managed and monitored. So take a cloth (and possibly a face mask if you are allergic to dust), clean off the dust from your policy documents and start managing your insurance policies today. Note: before you start, it might be helpful to do up a spreadsheet, documenting the various types of policies as well as their details. Step 1: Types Of Policies The first step to understanding your...
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Do you have a couple of insurance premiums running off your bank account each month? You might be spending a few hundred bucks a month on life cover, funeral insurance, a policy to cover your car and household goods, and medical aid on top of it all. Did you know that insurance policies fall into different categories? In this blog post we are going to discuss the differences between short and long-term insurance policies, and if your medical aid is considered insurance at all? Remember, the more you know about insurance, the better decisions you can make. The concept of risk transfer This is probably a good place to start. Before we move onto the types of insurance, defining the term...
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Take the mystery out of life insurance with our beginners’ guide, then run your comparison quotes to find the right deal for you. If you thinking about life insurance, you’re wondering how much cover you need? How long you need it for? And where to get the best deal? At first life insurance , can seem complex and it’s not always easy to work out what cover is right for you. Is ‘life insurance’ the same as ‘life assurance’? For the most part yes, they but pay out a tax-free lumps sum on the death of the person insured. However, strictly speaking life insurance pays out if something happens to you, whereas life assurance pays out when it does. So,...
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Throughout the duration of your term life insurance policy, you’ll pay monthly premiums to keep your coverage in effect. A common question among insured individuals is: What happens to my premiums when the policy expires? At the end of your term, coverage will end and your payments to the insurance company are complete. If you outlive your term life insurance policy, the funds are forfeit. The premiums from individuals who don’t die while their policies are in force ultimately support the generous payouts that insurance companies can pay to those who do. Where does my money go for my term life insurance policy? Everyone who is paying life insurance premiums is essentially...
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You were a good spouse and protected your young family and home with a term life insurance policy 20 years ago. But now that policy is about to expire. That’s a great question, and an important one we hear all the time. Let’s cover the most important considerations for you the consumer. Quick Article Guide: Say your policy ends. Do you still need life insurance? The premise for buying term life insurance is to carry enough coverage to replace the income lost if you die prematurely. When you were the young bread winner, you probably bought enough life insurance to replace 10 to 20 years of your income. If you now have little debt, and enough in savings and assets that your...
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