Group Insurance Is Temporary

Group insurance is typically taken up by employer to provide insurance coverage as a fringe benefit for their employees. Almost all group insurance are yearly renewable policy. The insurance scheme normally covers the employee's life, disability, accident, medical and some retirement scheme. Spouse and family may be included in group medical scheme.Employer prefer group insurance as this is the most economical type of insurance.

Employee insured under the Employer group insurance policy must not forget that group insurance is a temporary insurance coverage.

Many employees are under the illusion that group insurance is permanent. They refused to purchase individual permanent insurance under the assumption that they are insured permanently. For example - a healthy man joins the workforce at age 25. He is covered under group insurance. He did not purchase any individual permanent life or medical insurance on his own.

At a later stage of his life - his group insurance cease due to the employer not renewing the group insurance policy or the employeee left the employer. When the employee apply for a permanent individual insurance policy - his health may have change. This may prevent him from obtaining the insurance policy or counter-offer from insurer. The counter offer can be a loading in premium and/or exclusion on the illness and/or limitation of the extend of the coverage.

In another scenario where employee looses out is when employer switch group insurer. Because an employee health may have changed, the new insurer may decline his application of insurance or a counter-offer.

Or when employee are asked to leave employment due to cronic / terminal illnesses. This employee will never be insurable again.

Most retirees are unable to obtain individual insurance coverage after retirement from employment because of their health status have changed. Most Malaysian would have been daignosed for diabetes, high blood pressure, gouts, high cholesterol at age 55 and above. For those retirees who are luckier to obtain individual insurance - it comes with a high premium, exclusions and limitations.

Young employee are strongly advice not to reply on group insurance exclusively. Group insurance provides TEMPORARY protection only. When you are older and need insurance - you will discover that you are no longer insurable.

"Good things are not cheap and cheap things are not good.

Bijak @ NIAM

The National Insurance Association of Malaysia’s (NIAM) strategy to shift its focus and push on higher plans have begun to yield results, said chairman C. Kumaran.

Efforts to penetrate the mass affluent market had been successful and the trend indicated that life insurance and medical protection products were still the smart choice for a wide segment of Malaysians, he told Bernama.

“We launched Bijak Malaysia, a wholelife insurance plan, in 2007 and today it remains the premier product marketed by local banks,” Kumaran said. “In the first six months of the year, a gross premium of RM45mil was registered and the target is to cross RM50mil (this year) and to surpass RM60mil next year,” he said.

Kumaran was upbeat about the outlook for Bijak Malaysia, given the increasing awareness for a comprehensive protection and saving plans as well as consistent sales performance.

He said the local life insurance industry was still lucrative as only around 41% of the Malaysian population were currently insured. According to NIAM, Bijak Malaysia is the leading bancassurance product among local banks. It was designed and developed by NIAM members for the local market.

“NIAM expects to see an average growth of up to 30% for Bijak Malaysia annually,” said Kumaran earlier at the launch of the third Bijak Malaysia Convention here.
The product recorded RM27.5mil in sales during its promotional campaign from November 2010 until June 2011.

Bijak Malaysia standing committee chairman and NIAM exco member Raymond Lew said since the launch of the product four years ago, it had attracted about 98,000 policyholders with sales of RM169mil.

“Looking at the consistency of the sales performance, we are confident that Bijak Malaysia will easily break the benchmark of 100,000 policyholders by year-end,” he said. Raymond also said that the association would launch at least two new plans, including Cergas Malaysia and Ceria Malaysia, by next year

Ceria @ NIAM

The National Insurance Association of Malaysia (NIAM) expects to sell an average of RM500 million worth of policies under its proposed critical illness plan, Ceria Malaysia, in the first quarter of next year.

NIAM Chairman C. Kumaran said the introduction of Ceria Malaysia, which would be submitted for approval end of the month, would be timely considering rising medical costs and the increase in demand for medical related insurance products which are also expected to continue to lead the industry's growth.

Ceria Malaysia would ride on the momentum of NIAM's premier life insurance plan, Bijak Malaysia, as it would complement the whole proposition, Kumaran told Bernama.

NIAM would submit Ceria Malaysia for approval to Bank Negara Malaysia by end of the month, he said, adding that it was expected to hit the market by the first quarter next year.

Kumaran said it was also important to introduce more creative plans that reflect the current needs of society. He said the cost of Ceria Malaysia plan, an extension of Bijak Malaysia, will also be more affordable.

It will be 20 to 30 per cent cheaper than any critical illness plan in the market with similar features and with yearly renewable term, he said.

Citing an example of premium payment, he said: "For RM100,000 sum assured, a 40-year old man would have to pay RM686 per year."

Bank Negara recently approved another NIAM initiated product, Cergas Malaysia, a guaranteed renewal hospital and surgical policy.

Kumaran said the association was confident that the product would be well received by the public.

He also cautioned NIAM members not to lose sight of the responsibility to ensure customers were treated fairly in all aspects of the insurance pendulum in their eagerness to introduce more creative, attractive and beneficial products to the consumers.

"There must be a good balance between commercial interest and the public interest.

"The Treat Customer Fairly guidelines that BNM has introduced must be taken seriously by all industry players and adhered to in full capacity," he added.

Established in 1973, NIAM currently has 28 member companies comprising 11 general insurance companies, four composite insurance companies, three life insurance companies, five takaful operators and five reinsurers.

OSKIB & Manulife

OSK Investment Bank Berhad (“OSKIB”) today signed a strategic bancassurance partnership with Manulife Insurance Berhad (“Manulife Malaysia”) to enhance its existing range of wealth management products and services. Manulife Malaysia is a wholly-owned subsidiary of Manulife Holdings Berhad (“Manulife Holdings”), offering forward-thinking financial solutions and services to its customers.

Signing the distribution agreement were Mr. U Chen Hock, Chief Executive Officer of OSKIB, and Mr. Michael Chan, Chief Executive Officer of Manulife Insurance Berhad.

Under the Bancassurance arrangement, OSKIB will distribute Manulife Malaysia’s life insurance products through its private bankers and wealth managers. The first products to be launched are two limited payment endowment plans under the OSK Wealth Saver series that are specially designed to help different OSKIB customer segments meet their financial goals.

The sharing of expertise between OSKIB and Manulife Malaysia will see both organisations work together to develop more products tailored for OSKIB customers to better serve their savings, protection and investment needs.

Who Is Robin Lim

Indonesian midwife Robin Lim, from Bali, has been included in US news network CNN's top 10 heroes in 2011 for her dedication in offering free prenatal and birthing services to low-income Indonesian women.

Lim established the Bumi Sehat Foundation, or Healthy Mother Earth Clinic, in 2003 and has since then provided medical assistance to thousands of women in Bali and Aceh.

Robin, along with the other nine honorees, will each receive a US$ 50,000 (S$65,370) grant and will have their story told by a celebrity. One lucky honoree will receive an additional $250,000 to further aid their cause and be named CNN hero of the year.

The network announced that online votes can be cast by visiting www.cnnheroes.com and would be open until Dec. 7 2011.

CNN stated in its press release that the annual grants were given to honor and empower individuals who are making extraordinary contributions to help improve the lives of others.

"We hope to empower these selfless individuals to persevere in their humanitarian efforts to create progress, and are proud to share the stories of this year's Top 10 Heroes," said Jim Walton, President of CNN Worldwide.

Retirement Top Priority

Retirement gets top priority in the financial planning of middle-income earners in Malaysia, followed by family income protection and children's education needs, a survey by ING Insurance Bhd revealed.

In a statement Wednesday, ING Insurance said the survey found some 83% of Malaysians believe there is a greater need now to protect their lifestyles compared with 12 months ago.

The survey found 84% of respondents did not own a Takaful product although the majority or 62% agreed that the Islamic insurance cover is not meant for Muslims only.

Insurance penetration among the Malays is less than 10%. There is a huge market with the emerging Malay middle-class and also non-Muslims gradually opting for family Takaful products. For family Takaful, the top products are hospital and surgical, term life, critical illness and personal accident plans.

Congratulations Ambiga

Sept 23 — Resplendent in a black-and-gold sari, Datuk Ambiga Sreenevasan was tonight conferred France’s highest honour, the Chevalier de Legion d’Honneur (Knight of the Legion of Honour).

As he pinned the distinctive five-pointed medal on her sari, France’s ambassador to Malaysia, Marc Barety, said the award was to recognise Ambiga’s dedication to human rights and to boost the rule of law in Malaysia.

Ambiga joins an exclusive club of some 20 to 25 Malaysians conferred the French award. Among them were the Yang Di-Pertuan Agong Tuanku Mizan Zainal Abidin, airline maverick Tan Sri Tony Fernandes and Ipoh-born Hollywood actress Datuk Michelle Yeoh, Barety said.

In Pursuit Of Happiness

Life insurance is something we all need, but few of us want to spend any time thinking about our own demise. It’s really not about us, but the people who depend on each of us for their survival. Life insurance is so important that the Life and Health Insurance Foundation for Education has designated September as Life Insurance Awareness Month. The foundation is encouraging people to examine their life insurance policies to determine if they are adequately protected.

Life insurance is a practical way to protect your family’s financial hopes and dreams. The death of a family member can be devastating to survivors both emotionally and financially. Life insurance can provide cash to help with your family’s immediate and long-term needs. Immediate needs include funeral expenses, unpaid medical bills and taxes. Long-term needs include care for a disabled child or elderly parent expenses and, in general, the chance for members of your family to continue to live the life to which they are accustomed.

When you buy life insurance, you buy a promise of protection against financial loss caused by death. The promise is only as good as the company that stands behind it. In today’s marketplace, life insurance buyers should be concerned about both the financial strength of the insurer as well as the level of customer service the company provides.

Life insurance can be the foundation of a sound financial plan, especially given the continuing need after the death of a breadwinner. Think of it as a safety net should a wage earner die unexpectedly. In addition to that, permanent life insurance may accumulate a cash value that can be accessed while you are still living. While any loans from a policy will accrue interest and diminish the cash value and any death benefit, the proceeds could be used for any number of reasons.

Life insurance can be one of the most important purchases you make. Take some time during Life Insurance Awareness Month to examine your life insurance needs.

Give Generously

A rich man who once asked his priest, "Why does everybody call me stingy when everyone knows that when I die I will leave everything I have to this temple?"

The priest said:

"There once was a pig and a cow. The pig was unpopular and the cow was loved by all in the village. This puzzled the pig.

The pig said to the cow:

'People speak warmly of your good nature and your helpful attitude. They think you are very generous because each day you give them
milk, butter and cheese. But how about me? I give them everything I have. I give them the famous sausages, bacon and ham i.e. my entire body.
Yet no one likes me. Why is that?'

The priest continued: "Do you know what the cow answered?

The cow said, 'Perhaps it is because I give while I am still living.'


LOVE PASSIONATELY
GIVE GENEROUSLY

Regrets - Top 5

These are the top five regrets former nurse Bronnie Ware has heard from patients on their deathbeds:

1. I wish I'd had the courage to live a life true to myself, not the life others expected of me.

2. I wish I didn't work so hard.

3. I wish I'd had the courage to express my feelings.

4. I wish I had stayed in touch with my friends.

5. I wish I had let myself be happier.

Easy Lesson in Lying

It’s my opinion that lying is rampant in the workplace.

5 Reasons people lie to the boss

#1. The boss can enhance or hinder your career track

#2. The boss can control your salary

#3. The boss argues with you when you tell them the truth

#4. The boss violates confidence

#5. The boss shoots the messenger and the problem you point out becomes your problem

5 ways to spot liars at work
#1. They blame others rather than take responsibility

#2. They never correct you

#3. Guilt may cause people to talk more

#4. Insecure people are more likely to lie

#5. Highly competitive people who need to win may tell more lies

If you are the boss, people lie to you unless …

#1. You honor those who disagree with you

#2. You give opportunities to those who think otherwise

#3. You stop hanging with brown nosers

#4. You keep asking questions that get to the bottom issues

#5. You point out inconsistencies that seem like lies

People tell the boss what the boss wants to hear. If you don’t aggressively address this tendency, many will lie to you. It isn’t necessarily malicious. It’s more likely self-serving.

Business Leaders Typical Lies

Paul LaFontaine left Bertelsmann Music Group in March 1997 to advise other businesspeople about radical honesty. He has lots of work to do. "There are as many lies in business as there are people in business," he says. Here are his nominees for the five most common lies:

Lie: "People are our most important asset."
Truth: "People are our most worrisome and unpredictable asset. Our most important assets are really our financial assets."

B.S. Detector: This may be the leading lie of our times. "When management starts talking about how important people are," LaFontaine says, "you can bet there is going to be an unpopular human resources decision coming soon."

Lie: "This was a rational decision."
Truth: "I wanted to do this."

B.S. Detector: People "want what they want just because they want it," says LaFontaine.

Lie: "We judge people by their performance."
Truth: "I judge your performance based on how much I like you."

B.S. Detector: "Why do most people who keep their jobs keep them?" LaFontaine asks. "Because the people they work for like them. And you get fired when the people you work for don't like you anymore.

Lie: "This is business, it isn't personal."
Truth: "Everything's personal."

B.S. Detector: "As people, we get mad at each other," says LaFontaine. "Attempts to avoid it are cowardly. So get mad. Then get over it and move on." LaFontaine believes that any disagreement can be handled with an honest conversation.

Lie: "The customer comes first."
Truth: "I come first."

B.S. Detector: "More often than not, 'the customer' is an abstraction," LaFontaine warns. "People take care of customers when it benefits them and ignore customers when they can get away with it. Nobody says 'I come first,' which is what's usually going on."

Smiling Tiger

The word “motivation” is one that is often confused with “manipulation.” Motivation occurs when you persuade someone to take an action in their own best interests.
Things like people preparing their homework, accepting responsibility for their performance and finishing their education, are the result of motivation.

Manipulation is persuading someone to take an action which is primarily for your benefit. Things like selling an inferior product at an inflated price or working people overtime with no extra pay are examples of manipulation. Manipulation self-destructs the individual doing the manipulating. Word gets out on manipulators and people grow less and less likely to respond in a positive manner to their manipulation. Productivity declines.

Leadership occurs when you persuade a person to take an action which is in your mutual best interests. Eisenhower said that leadership was the ability to persuade someone to do what you wanted them to do because they wanted to do it. When that happens, performance improves, productivity increases, and both parties win.

Comparing motivation to manipulation is like comparing kindness to deceit. The difference is the intent of the person. Motivation will cause people to act out of free choice and desire, while manipulation often results in forced compliance. One is ethical and long-lasting; the other is unethical and temporary.

Carlisle said, “A great man shows his greatness by the way he treats the little man.” The value you place on people determines whether you are a motivator or a manipulator of people.

Motivation is moving together for mutual advantage.

Manipulation is persuading or even subtly coercing someone to do something so that you win and they lose.

With the motivator everybody wins; with the manipulator, only the manipulator wins. And to that I might add that the victory is temporary and the price is prohibitive. Leaders and motivators are winners, manipulators are losers who produce resentment and discord.

Climbing Corporate Ladder

Graduates usually have high expectations about becoming the next millionaires in the finance industry. But I can assure you that fairy tales never come easily in this highly competitive market.

Once you step into the workforce, you should quickly forget your academic and sporting achievements, and even your so-called self esteem. In order to succeed, you must realise that banking is essentially a people-oriented business.

In short, this means you must identify the people who have the greatest power and authority to propel your career. It’s vital to know exactly what your direct boss wants, and not focus on your personal achievements.

So, forgot financial modelling and risk analysis, here are three rules I think every junior banker should follow.

Know your boss
It should be your number one goal to understand your line manager’s working style and personality because this will help to avoid future conflicts. As a senior HR person at my own firm told me recently: “In many cases, subordinates can’t fulfil their supervisors’ expectations as they don’t know what their bosses want.”

Respect the hierarchy
Generation Y employees often incorrectly consider their managers to be their buddies, especially if they are a similar age or went to the same university. But this means trampling over the firm’s hierarchy and it will ultimately backfire.

Never express your emotions in the office
In the face of criticism, youngsters often fail to control their emotions, especially if they haven’t been scolded in public before. Do not fight back against your boss under any circumstances. It is better to acknowledge and correct any problems.

Never talk bad about your boss or company
Never talk bad about your boss or company in formal or informal gathering. Negative news travel faster than lighting. Your boss will be preparing your exit faster than yu can say "Hi". You will not know what strike you.