A Gift Of Love

If I were forced to make a list of the different financial products that people generally hate to buy, life insurance would most likely top the list. Because when you purchase life insurance, you’re admitting your mortality. And while admitting your mortality is arguably a healthy thing to do, it certainly isn’t a fun thing to do.

Life insurance can be challenging for consumers because it deals with two polar opposite concepts: practicality and love. Let’s start with the prickly part first, and then we’ll tackle the fuzzy stuff.
Practically speaking, when you die, your income dies, too. In fact, if I were forced to disclose the worst aspect of dying, from a financial perspective, I would point to the death of a person’s income.

For most people, life insurance should be used to replace the disappearing income. Your lifestyle, your expenses and your goals are all based on your income. If you die, your income dies, and your survivors’ lifestyles, expenses and goals die. A death isn’t a blip on the screen that results in quick financial adjustments by the survivors. A death, when not supported by the proper amount of life insurance, rips people from their homes, routines and dreams.

Still with me? Good. A very important question needs to be answered. How much life insurance should a person have? Well, a lot more than you think, and a lot more than you want to buy. Despite the innate laziness of “rules of thumb,” they are often reasonable and appropriate. In the life insurance world, the rule of thumb is to have 10 times your income in life insurance coverage. For instance, if you make $50,000 per year, then you should have approximately $500,000 in life insurance.

This amount of life insurance would allow your survivors to re-create a vast majority of your net income, for quite some time, until they find a new normal. Without a doubt, the most important aspect of life insurance is having the right face amount. Unfortunately and fortunately, I’ve been there to pick up the financial pieces, several times, after the death of someone. Sadly, hundreds of thousands of dollars don’t help much if the situation calls for hundreds of thousands of dollars more.

It’s worth noting that there’s an old-school approach that primarily relies on life insurance to pay off debts (usually the mortgage). But I’ve found that this strategy is shortsighted and outdated. While the elimination of a person’s largest monthly obligation, via a life insurance death benefit, is prudent, it can still create major short- and long-term cash flow issues. I like to think of it this way: If you kill the egg-laying chickens, then you will run out of eggs. In other words, if you use a bunch of money that could otherwise be used to create an income, then you lose the ability to create money forever.

Now for love. I told you that life insurance is also about love — although it’s a sad day when you start taking love advice from a financial columnist. Life insurance is love personified. A person who buys the proper amount of life insurance is securing the future of his/her survivors.

I once heard love described as staring at two peaches and taking time to figure out which peach is the best, because that’s the one you plan on giving to your significant other. That’s life insurance. You are taking the time and money to provide the best possible outcome for your loved ones, even though you won’t be there to enjoy it with them. The opposite of love is leaving their future to chance with an uninspired “good luck with that.”

Take some time to walk yourself through the financial lives of your loved ones, in the event of your passing. And if that doesn’t inspire you to act and buy the proper amount of life insurance, at least buy them a few egg-laying chickens.

AIA Good Offer Gone Bad

The Ministry of Health (MOH) has asked insurer AIA not to reduce the payout to policyholders when they switch to a different plan. Its response comes after The Straits Times alerted MOH about the affected policyholders.

A spokesman for MOH said it has directed AIA to review cases "where policyholders have seen their coverage compromised" to ensure that they meet the regulations and conditions of Integrated Shield Plans. These are medical insurance plans whose premiums can be paid for with Medisave. AIA told The Straits Times that fewer than 20 people are affected.

One of them is Madam Esther Sim, who has been going for dialysis treatments since March last year. Her original medical insurance plan helped pay for 90 per cent of her treatment cost.
 Background Story

 

AIA told Madam Esther Sim that she will be covered under another insurance plan and that her existing plan would be discontinued. Her premiums will go up by about $300 a year to $1,119, but the benefits are better.

However, the claimable amount is pegged at 100 per cent for treatment cost incurred at public institutions, but only 70 per cent at private facilities under her new policy. Her original policy did not discriminate between the two.

Previously, her co-payment was 10 per cent. Now, it is 37 per cent (30 per cent + 10 per cent of 70 per cent).

Takaful Ikhlas Growth 2013

Islamic insurance provider Takaful Ikhlas Sdn Bhd expects to close its financial books for the year ending March 31 with a 20% year-on-year growth in assets.

“The takaful insurance industry is expected to grow due to good domestic demand. We still have time to close our books but for the financial year 2013-2014 (FY14), I think it should be about 20% growth,” Takaful Ikhlas president and CEO Ab Latiff Abu  Bakar told The Malaysian Reserve in Kuala Lumpur yesterday.

The takaful operator had reported a net earned contribution of RM653.8 million for FY13 and a profit of RM10.1 million, according to the company’s financial report.

Takaful Ikhlas is the underwriter for the scheme. “Takaful Ikhlas currently in third position in the sector and has a market share of 12%,” Ab Latiff said.

In the takaful insurance segment in Malaysia, apart from Takaful Ikhlas, there are other players like AIA AFG Takaful Bhd, AmFamily Takaful Bhd, Etiqa Takaful Bhd, Great Eastern Takaful Sdn Bhd and others. The insurance and takaful sector in the country has been growing and is expected to remain stable in 2014 amid domestic demand.

Both conventional and takaful operators are coming out with new products. According to a report from Ernst & Young, Malaysia is known to be the world’s largest family takaful market and is expected to continue to take the lead in the Asean takaful industry.

Overcoming Negativity In Office

We know it sucks, but all that whingeing and whining can take a serious toll on how you feel and how productive you are at work. And while the end of holidays can leave us feeling a little down, there are some people who love to bring the negative vibes to work all year round.

Here are some of the most common negative workplace personalities and some tips on how to effectively deal with them.

The Bad News Bears
These guys revel in the negative. They can't wait to tell you about a mistake your colleague made, that the boss is furious or a client is annoyed. These venting sessions are unproductive and incredibly draining on you. Plus they're just bloody annoying.

Solution:
If there's a real issue here, deal with it, then walk away. Help them to find a suitable solution to the problem. Even just point them in the right direction. Mostly these guys just want to have a good old whinge, in which case, exit the conversation gracefully (and quickly). Quick getaway phrases such as "I have an urgent email/phone call I need to attend to" or "I have a looming deadline" are good ones to use.

2. The Gossip Mongers

Some people love to gossip. Let them know you’re not interested in silly gossip. It's just like high school, except everyone's wearing suits.In a corporate environment, it can often seem like the rumours never stop. Someone's going to be fired, hired, promoted or made redundant. Gossipers love stirring the rumour pot and creating worst-case scenario situations.

Solution:
Gossipers don't care about facts. So the next time you hear someone pedalling an outrageous rumour, push them for real answers: "That sounds pretty ridiculous. Is that really true? Who did you hear that from?" They'll back down and realise pretty quickly that you're not one to engage in frivolous chatter. Another strategy is to play dumb - if you seem disinterested or have no information to offer them, they'll move on. "I heard Sam's looking for a new job and the boss just found out. What do you think will happen?". Just shrug and say, "I'm not sure, I can't help you with that one. Sorry".
If they push you for more, don't be afraid to establish your personal boundaries. "I don't really like to talk office politics, plus it's not really any of my business".

The Drama Queens (or Kings)
These spotlight-lovers love the drama and attention, and can be the most draining on their co-workers.  Everything bad always happens to them (and only them), they supposedly work harder and longer than anyone else and are assigned the most tedious jobs. They're always trying to one-up any story you tell: "You think that was a bad client? Last week, I had to drive two hours to a client's house just to bring him work samples!" The drama queen believes he or she is the only one to ever experience tedious events, and feels they're worthy of a wrath-laden rant.

Solution:
These guys are offering you bait. So don't bite. The more you react to their drama ("Oh my god, that sounds awful") the more you feed the beast. Ignore their rants and go on about your day. Your message - "I'm not interested" - will eventually be received.

4. The Chicken Littles

These guys always think the sky is falling. If you share some good news ("We landed that client!" or "We beat the competition", they'll respond with and unnecessarily pessimistic comment. "I've heard that client is a real pain" or "Yeah, but they'll just beat us again next quarter").

Solution:
Don't try to fight the negativity. It's not worth your time. Find a friendly colleague to celebrate with.

The Victims
Victims blame others for everything. "The boss is out to get me!". "I missed that deadline because someone in admin didn't get my paperwork in on time". They constantly complain about everything that's happening in their lives and never take responsibility for their actions. They believe the world is out to get them. And boy, they love to talk about it.

Solution:
Let the person know that you work better in a positive environment. Make it about you, not them.
"That's not great. But tell me about something that's been going well for your lately".
You can also ask them what they could have done to avoid the situation - "That sucks. How do you reckon you can avoid that next time?"

Group Insurance - Major Fault-line

Many individuals sign up for group and spousal coverage through their employer’s benefit provider for the convenience, not often weighing their options or speaking to an advisor about their options.

And while group life insurance is a simple way to pay for coverage, and often the easiest way to guarantee it, it may not be the most cost effective way to obtain needed insurance coverage.

During a recent review for a healthy 50 year old male, currently paying ~$3,200 annually for approximately $1,000,000 of life insurance through a work group plan, we found a term life insurance policy that would cover him for 15 years (through the end of his employment) would cost approximately $750. Not only is the savings on the current year nearly $2,500, but the cost of the personal policy is locked in as opposed to the workplace policy, and it is guaranteed whether he works for the same employer or not over that 15 year period.

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Why is group life insurance an expensive way to obtain life insurance?

Pricing negligence. Employer group policies start out very cheap at younger ages. By starting low and maintaining a low rate over a number of years, the power of complacency sets in with many buyers. Employees may know the price has risen, but likely has their coverage need, and they don’t often do the work to compare the cost to a personal plan.

Increasing claims. Group coverage is based on the health of the group, or actuarial data on the age bands that comprise the group. We all know as we age there are more deaths, and so the amount will increase over time.

Anti-selection. As we age, a higher percentage of people also develop health problems or continue with dangerous habits that place them in higher risk categories that may not allow them to purchase individual health policies. Since these individuals are more likely to stay with the more expensive group coverage, the cost of the group life insurance reflects the inclusion of these individuals with higher premiums.

The underwriting process when applying for individual insurance outside of your employer gives the insurer data to properly price your individual policy. According to Maurer, “At ages 40 and older everyone should evaluate the costs – healthier clients not only can pay less right away, but over 10, 15, or 30 years individual coverage can provide thousands of dollars in savings by going through underwriting.”

Even if you are young, you may benefit from locking in personal coverage since rates will rise eventually. Personal insurance policies, as well as those for spouses, will be there whether or not you’re at the same employer (or employed), or if you no longer qualify for coverage. Keep that in mind before signing up for additional coverage through your employer.

AXA - Top Insurer

France’s AXA S.A. remained at the top of the list of global insurers in terms of net premiums written in 2012, based on figures released Monday by rating agency A.M. Best.


AXA, with $106.4 billion in net premiums written, was followed by UnitedHealth Group Inc., which ranked No. 2 in 2011 as well as 2012.

Allianz moved up to the No. 3 spot from fourth in 2011, with its net premiums written growing 4% to $88.2 billion in 2012.

“Allianz’s core market remains Europe, which in 2012 generated about 60$ of property/casualty consolidated gross premiums and 75% of life/health statutory premiums,” A.M. Best noted. The insurer’s operating profit also increased 20.8% to $13 billion in 2012, it added.

Italy's Assicurazioni Generali S.p.A. was fourth in 2012, followed by Japan’s National Mutual Insurance Federation of Agricultural Cooperatives.

Rose

The first day of school our professor introduced himself and challenged us to get to know someone we didn't already know. I stood up to look around when a gentle hand touched my shoulder.

I turned round to find a wrinkled, little old lady beaming up at me with a smile that lit up her entire being.

She said, "Hi handsome. My name is Rose.  I'm eighty-seven years old. Can I give you a hug?"

I laughed and enthusiastically responded, "Of course you may!" and she gave me a giant squeeze. "Why are you in college at such a young, innocent age?" I asked.

She jokingly replied, "I'm here to meet a rich husband, get married, and have a couple of kids..."

"No seriously," I asked. I was curious what may have motivated her to be taking on this challenge at her age.

"I always dreamed of having a college education and now I'm getting one!" she told me.

After class we walked to the student union building and shared a chocolate milkshake.  We became instant friends. Every day for the next three months we would leave class together and talk nonstop. I was always mesmerized listening to this "time machine" as she shared her wisdom and experience with me.

Over the course of the year, Rose became a campus icon and she easily made friends wherever she went.  She loved to dress up and she reveled in the attention bestowed upon her from the other students. She was living it up.

At the end of the semester we invited Rose to speak at our football banquet.  I'll never forget what she taught us. She was introduced and stepped up to the podium. As she began to deliver her prepared speech, she dropped her three by five cards on the floor. 

 

Frustrated and a little embarrassed she leaned into the microphone and simply said, "I'm sorry I'm so jittery. I gave up beer for Lent and this  whiskey is killing me! I'll never get my speech back in order so let me just tell you what I know."

As we laughed she cleared her throat and began, "We do not stop playing because we are old; we grow old because we stop playing.

There are only four secrets to staying young, being happy, and achieving success. You have to laugh and find humor every day. You've got to have a dream. When you lose your dreams, you die.

We have so many people walking around who are dead and don't even know it!

There is a huge difference between growing older and growing up.

If you are nineteen years old and lie in bed for one full year and don't do one productive thing, you will turn twenty years old. If I am eighty-seven years old and stay in bed for a year and never do anything I will turn eighty-eight.

Anybody can grow older. That doesn't take any talent or ability. The idea is to grow up by always finding opportunity in change. Have no regrets.

The elderly usually don't have regrets for what we did, but rather for things we did not do. The only people who fear death are those with  regrets."

She concluded her speech by courageously singing "The Rose."

She challenged each of us to study the lyrics and live them out in our daily lives.

At the year's end Rose finished the college degree she had begun all those years ago.

One week after graduation Rose died peacefully in her sleep.

Monsieur, posted Apr 10, 2007

Mentally Strong Entrepreneurs

The things mentally strong individuals don't do.

Waste Time Feeling Sorry for Themselves. You don’t see mentally strong people feeling sorry for their circumstances or dwelling on the way they’ve been mistreated. They have learned to take responsibility for their actions and outcomes, and they have an inherent understanding of the fact that frequently life is not fair. They are able to emerge from trying circumstances with self-awareness and gratitude for the lessons learned. When a situation turns out badly, they respond with phrases such as “Oh, well.” Or perhaps simply, “Next!”

Give Away Their Power. Mentally strong people avoid giving others the power to make them feel inferior or bad. They understand they are in control of their actions and emotions. They know their strength is in their ability to manage the way they respond.

Shy Away from Change. Mentally strong people embrace change and they welcome challenge. Their biggest “fear,” if they have one, is not of the unknown, but of becoming complacent and stagnant. An environment of change and even uncertainty can energize a mentally strong person and bring out their best.

Waste Energy on Things They Can’t Control. Mentally strong people don’t complain (much) about bad traffic, lost luggage, or especially about other people, as they recognize that all of these factors are generally beyond their control. In a bad situation, they recognize that the one thing they can always control is their own response and attitude, and they use these attributes well.

Worry About Pleasing Others. Know any people pleasers? Or, conversely, people who go out of their way to dis-please others as a way of reinforcing an image of strength? Neither position is a good one. A mentally strong person strives to be kind and fair and to please others where appropriate, but is unafraid to speak up. They are able to withstand the possibility that someone will get upset and will navigate the situation, wherever possible, with grace.

Fear Taking Calculated Risks. A mentally strong person is willing to take calculated risks. This is a different thing entirely than jumping headlong into foolish risks. But with mental strength, an individual can weigh the risks and benefits thoroughly, and will fully assess the potential downsides and even the worst-case scenarios before they take action.

Dwell on the Past. There is strength in acknowledging the past and especially in acknowledging the things learned from past experiences—but a mentally strong person is able to avoid miring their mental energy in past disappointments or in fantasies of the “glory days” gone by. They invest the majority of their energy in creating an optimal present and future.

Make the Same Mistakes Over and Over. We all know the definition of insanity, right? It’s when we take the same actions again and again while hoping for a different and better outcome than we’ve gotten before. A mentally strong person accepts full responsibility for past behavior and is willing to learn from mistakes. The ability to be self-reflective in an accurate and productive way is one of the greatest strengths of spectacularly successful executives and entrepreneurs.

Resent Other People’s Success. It takes strength of character to feel genuine joy and excitement for other people’s success. Mentally strong people have this ability. They don’t become jealous or resentful when others succeed (although they may take close notes on what the individual did well). They are willing to work hard for their own chances at success, without relying on shortcuts.

Give Up After Failure. Every failure is a chance to improve. Even the greatest entrepreneurs are willing to admit that their early efforts invariably brought many failures. Mentally strong people are willing to fail again and again, if necessary, as long as the learning experience from every “failure” can bring them closer to their ultimate goals.

Fear Alone Time. Mentally strong people enjoy and even treasure the time they spend alone. They use their downtime to reflect, to plan, and to be productive. Most importantly, they don’t depend on others to shore up their happiness and moods. They can be happy with others, and they can also be happy alone.

Feel the World Owes Them Anything. Particularly in the current economy, executives and employees at every level are gaining the realization that the world does not owe them a salary, a benefits package and a comfortable life, regardless of their preparation and schooling. Mentally strong people enter the world prepared to work and succeed on their merits, at every stage of the game.

Expect Immediate Results. Whether it’s a workout plan, a nutritional regimen, or starting a business, mentally strong people are “in it for the long haul”. They know better than to expect immediate results. They apply their energy and time in measured doses and they celebrate each milestone and increment of success on the way. They have “staying power.” And they understand that genuine changes take time.

Life Insurance Benefits

Beyond the familiar death benefit, permanent life insurance has several valuable advantages that can both expand and protect your financial security. Here are some of the additional opportunities life insurance can offer:

Access to CashOnce it accumulates, your life insurance cash value is accessible through policy loan or withdrawal for family and business opportunities, education funding, retirement income, emergencies, or to pay policy premiums.

Asset ProtectionLife insurance can offer a financial fall-back when needed and offset the impact of estate taxes upon your death. The death benefit also can provide surviving family members with funds they need to live comfortably and achieve their goals.

Consistent, Safe AccumulationPermanent life insurance cash values are guaranteed, meaning you will always have access to the assets you accumulate.

Flexibility with Less RestrictionYou can access your accumulated cash value without restrictions that exist on other assets. For example, there are no penalties or required minimum distributions, unlike other tax-favoured investments such as IRAs and 401k plans.

Long-term Financial Security for You and Your FamilyOnce you have built cash value over decades, you have multiple options for accessing those funds. You can cash in the policy, convert it to an annuity for guaranteed lifetime income, keep a portion of the death benefit and access some of the cash value, or continue the policy to protect your family and leave a legacy.

Protected InsurabilityAs long as premiums are paid, permanent life insurance provides coverage throughout your life, even if health or personal situations change. And buying a policy at a young age locks in insurability.
With so many unique benefits, permanent life insurance can be a strong addition to your balance sheet and the foundation for your financial security.

AXA 110 Cancer Care Plan

AXA AFFIN Life Insurance Bhd recently launched the AXA Cancer Care Project in collaboration with the National Cancer Society Malaysia (NCSM). Chief executive officer Loke Kah Meng said, compared to its previous projects, this campaign was designed to reach out to the masses via digital media. AXA invested RM8mil for this campaign, out of which 40% goes to digital mediums.

110 Cancer Care Plan launched last month focused greatly on social media, Internet video, search engine optimisation and online ads. AXA’s 110 Cancer Care Plan is the first and only online cancer insurance plan in Malaysia sold through a portal.

More than 150,000 people have visited the portal to-date. Of this almost 50% of them are referrals and those who visit the portal directly. More than 300,000 views of AXA’s TV commercials and testimonials spots on Youtube have been recorded since the campaign was launched.

 The portal provides easy enrolment with five simple steps, with premiums as low as RM1.50 a day.

Zainah Anwar

Sisters in Islam (SIS) founding member - Zainah Anwar has been listed as the most influential Muslim woman by the San Francisco-based International Museum of Women (IMOW).

Leadership - Small Business

Are you a leader just because you run a small business? No. But you need to be. Without business leadership, your small business ship will circle aimlessly and eventually run out of power.
Effective business leadership demands a captain of the ship, not just someone who's standing by the helm. Leadership is active, not passive.

Cool-headed, farseeing, visionary, courageous - whichever adjectives you choose, leadership is a winning combination of personal traits and the ability to think and act as a leader, a person who directs the activities of others for the good of all. Anyone can be a leader, even if the only person they're leading is themselves.

But you can't be a leader just by saying you are. Business leadership, like leadership of any kind, needs to be worked at. Transform yourself into the kind of leader your small business needs with these five keys to business leadership.

A leader plans.
The core of business leadership is being proactive rather than reactive. Sure, leaders are good in crises - but that doesn't mean they sit around letting crises develop. Leadership involves identifying potential problems and solving them before they reach crisis proportions – and the ability to identify and reap potential windfalls. So good leaders analyze and plan and adapt their plans to new circumstances and opportunities.

A leader has a vision.
Vision is essential to good leadership. Vision provides direction and without direction, there’s not much point to all that planning; your small business will still flail about. So if you don’t have one already, take your first step towards business leadership by creating a Vision Statement for your business. Because it embodies your dreams and your passions, a vision statement will also serve as a leadership vision.

A leader shares her vision.
Sharing your leadership vision helps your vision grow and your business leadership develop. As you tell your leadership vision to others, you will strengthen your own belief in your vision and strengthen your determination to make your leadership vision become reality. And other people will start to see you as a person who's "going places". Your business leadership skills will grow as you and other people recognize you as a person with leadership potential.

A leader takes charge.
At this stage of business leadership, you put together your planning and your leadership vision and take action. Whether it's implementing a specific plan to improve your business's bottom line or responding to a crisis, you, as the leader, are the one who makes the decisions and sees that the appropriate actions are carried out. You can't just "talk a good game" to be a leader; you need to act and to be seen as taking effective action for the good of your small business.

A leader inspires through example.
If I asked you, you could easily name three people whose leadership qualities inspire you. If I asked you why, you’d tell me about the things these inspiring people did or are doing. Leadership is defined through action. Therefore, in developing your own business leadership skills, you have to act in ways that are fitting to your leadership vision and your self - all the time. We can all name many actions of other people whom we admire, but what inspires us is the integrity that gives these actions meaning.