Etiqa Market Leader

Maybank Ageas Holdings Bhd, the parent company of Etiqa Insurance Bhd and Etiqa Takaful Bhd, has registered a 7% growth year-on-year in pre-tax profit to RM733.2 million last year.

The result was attributed to the favourable returns from equity investments and improved general business underwriting performance, said Maybank Ageas chief executive officer, Kamaludin Ahmad.

The combined gross premium of its life insurance, general insurance, family Takaful and general Takaful businesses was RM4.8 billion last year.
“Overall, gross premium of Takaful business was RM2.3 billion, contributing 49% to total gross premium of Etiqa,” he told reporters at a financial results briefing today.

Etiqa continued to be the market leader in Takaful business in Malaysia, with a market share of 49.8% for general Takaful and 35.9% for family Takaful, he added.
Etiqa’s total assets rose 3% last year to RM28.3 billion from RM27.5 billion previously.

Malaysia Insurance Update 2013

The life insurance industry in 2013  provided a higher insurance protection to the public in aggregate, with 3.7 per cent higher claims amount, 14.2 per cent higher payout in maturity and cash surrender values and 6.7 per cent higher insurance coverage.

According to statistics from the Life Insurance Association of Malaysia (LIAM), claims paid in 2013 amounted to RM6.9 billion in various types of claims including death, disability, medical and cash bonuses, 3.7 per cent higher than the corresponding amount of RM6.7 billion a year earlier.

In addition, RM8.6 billion was paid in maturity amount and cash surrender values in 2013, 14.2 per cent higher than the corresponding figure of RM7.5 billion in 2012. The increase was mainly due to fluctuation in maturity payment which was dependent on the term of the policies.

“The life insurance industry in Malaysia remained stable with a small negative growth of 0.2 per cent in 2013, as measured by new business total premium (single premium plus annualised premium).
“The new business total premium in 2013 was RM8.19 billion, as compared to RM8.20 billion in 2012,” LIAM’s Vincent Kwo highlighted.

“Proactive measures should be taken by the insurers and the policy makers to increase insurance awareness and to encourage insurance purchase among the Malaysian population to reduce protection gap.

‘The result of our study are expected to spur the insurance industry to move forward in achieving the targeted penetration rate of 75 per cent by 2020 under the Economic Transformation Plan.”

As the government looks to enhance products by introducing regulatory measures such as the Financial Services Act 2013 and the Islamic Financial Services Act 2013 – both of which come into
force this year – the times are definitely interesting for insurers.

The General Insurance Association of Malaysia (PIAM) believes market conditions will evolve to reflect broader-based competition and a principle-based regulatory regime which modernises the laws that govern the conduct and supervision of financial institutions.

“With the development of a comprehensive regulatory and supervisory framework for the insurance industry and a more competitive insurance market, another important structural adjustment that the regulator is looking at is the review of the existing costs controls that are applied to life and general insurers,” noted PIAM.

Its chairman Chua Seck Guan said: “It is important for insurers to challenge their mind set, consider the outlook for the global economy and make a commitment to develop further as the industry plays a robust role in Malaysia’s financial system, offering a wide spectrum of general and life insurance products to cater to a more knowledgeable and financially aware society.”

The industry is directing its efforts to ensuring a firm foundation for orderly transition into this new and challenging environment.

Towards this end, Malaysian laws will place insurance companies on a platform readied by Bank Negara Malaysia for advancing forward as sound, responsible and responsive insurance companies.

Plenty of room for growth
Ernst & Young Malaysia partner (assurance) Brandon Bruce Sta Maria noted that life insurance had room for continued growth as the penetration rates for life insurance was lower compared to more matured markets such as Singapore and South Korea.

He expected the industry to maintain at least an equal growth rate compared to last year.
For the general insurance industry, Sta Maria expected premiums to continue to exceed prior year’s expectations due primarily to increased economic activity and growth.

This, he said, would be further enhanced by the expected increase in new motor premiums and the effects of the gradual increase in motor tariff premiums.

The priorities are for the industry to be more competitive, explained PIAM, make significant changes to raise performance standards in tandem with global advances and keep pace with the established international best practices on underwriting performance, improving claims costs ratios, enhancing productivity and reducing distribution costs.

“With liberalisation coming in the next few years, operating beyond the limits of what is currently practiced with a diversified delivery/distribution channel and strong market conduct practices is paramount,” PIAM enthused.

The industry will also have to deliver a more positive customer experience and should not compromise on the level of customer standards.

Further, with the global challenges stepping in, the requirement of a more skilled professional workforce to support the demand for complex products and sophisticated customer demands will be important.

The insurance industry will have to change its approach on attracting talent as only by attracting the right talent will the industry be able to prosper.

Under-insured still an issue
On the notion of Malaysians being under insured, Kwo of LIAM highlighted that it is crucial to note the degree of under-insurance as the sudden loss of a main wage earner could potentially have a damaging ‘domino effect’ with dire financial consequences.

“lt may result in the inability to pay off the mortgage, debts or children,s education,” he said, adding that the size of the protection gap is often a true reflection of the potential demand for life insurance coverage.

The findings also showed that families whose primary wage earner was not covered by either life insurance or medical insurance have the largest protection gap, hence buying life insurance would solve the problem.

Kwo said proactive measures should be taken by the insurers and the policymakers to increase insurance awareness and to encourage insurance purchase among the Malaysian population to reduce protection gap.

Traditional policies continued to be slightly more preferred by consumers than investment-linked business. The question now remains if the insurance players themselves share similar sentiments with the associations.

Mis-selling Life Insurance

A television commercial by a leading insurance company shows a financial adviser being hounded by a devil-like creature who disappears when the adviser continues to give the right advice to the prospective client and not cut corners. A couple of years back, another leading insurer had launched a campaign explaining the importance of paying attention to the basics before buying a life insurance product.

 

There is enough anecdotal evidence to suggest life insurance is often mis-sold. In fact, the industry now accepts this and the sector regulator has instituted reforms to control the menace. The efforts have certainly improved sales practices but not completely plugged the hole.

 

What can you as an individual do to protect yourself? How do you spot the devil in the detail? Here are a few simple ways to spot mis-selling.

 

Hear the opening pitch

Life insurance is a long-term product because you need insurance for the most part of your working life. Even as an investment product, it works only if held for a long term because of the embedded costs. However, it’s more difficult to sell a long-term product, so, to make their jobs easy, agents often approach you with a short-term insurance plan. If the words ‘short-term’ and ‘insurance’ come in the first few sentences that an over-eager insurance agent mutters, run. The main purpose of life insurance is to protect your family and assets financially in case of unforeseen events.

Another example is when insurance is bundled with other financial products or passed off as a freebie. For instance, you take a home loan and instead of buying a pure term insurance, which you must buy to protect your dependants from having to repay the loan amount should you die, you are sold an insurance plan with returns. Or, say, you are visiting your bank to open a Public Provident Fund account or a recurring deposit account and the bank employee directs you to an individual who offers a product that gives similar or better returns and insurance as bonus. This, again, is a red flag, as insurance is not a by-product of investing.

See standard illustration

When you sit down to understand the calculation for a traditional plan or a unit-linked insurance plan, if the agent gives you a handwritten calculation instead of the insurance company’s standard illustration of the calculation for the life insurance product, alarm bells should ring.

 

An agent or distributor who wants to sell the product for her own benefit will show her own calculations where the predicted returns will generally be in double digits. This is definitely not the right way to portray the benefits. Ask for the company illustration of the calculation. The agent should have this information readily available. Or, you could check it on the insurance company’s website.
 

Fill the form yourself

When you get a job offer, do you sign the contract without reading all the details? Of course not. So why would you sign insurance documents without reading them first? “Most insurance agents who want to push an insurance product will offer to fill the form for you. You will only be asked to sign at the relevant places. This is not the right practice.
 

By reading all the details and filling the form yourself, you will be able to understand all the details of the policy—what’s included, what’s not, surrender value, grace period, and much else. You can also get any doubts clarified. Even if the exercise is difficult, it helps you fully understand the product and minimize chances of error such as in name, age, address, nominees and more.

Check the product name

Every insurance company sells multiple policies—term plans, unit-linked insurance plans or traditional plan. Under each category there will be products with slight variations. It can happen that the agent contacts you for a particular product but ends up selling another. For instance, you get a call for an insurance policy while you are taking a home loan, but instead of selling you a policy customized for loan products, the agent sells you a traditional policy. Hence, ensure you check the product name while filling the documents.
 

Also, beware of agents who ask you to not bother about the medical details required in the form. They do this because if there is a medical issue, the company will have follow-up questions. The agent wants to avoid this as she is not bothered about the claim part. What matters to her is sales.
 

Wait for insurer to call

As a part of best practices adopted, most life insurance companies will make a call after the agent has explained the product and you have paid the first cheque. The insurers make this call to ensure that you have understood the terms and benefits of the policy correctly. If you realise at this point that you didn’t buy what your were explained, you can return the policy.

There have also been cases of imposters calling up on behalf of the LIAM and offering to help policyholders exit a life insurance policy and invest the money in better investment products. LIAM does not call individual customers offering to help them exit plans.

A lot of the hard sales push in insurance draws upon the basic human emotions of fear and greed. The minute you feel that the agent or distributor—who may well be a friend, a family friend or a neighbour—is talking of very high returns with very little risk, stay away.

Avoid too-good-to-be-true products. If you still want to buy it, don’t sign on the documents right away. Instead, ask for the policy brochure and go through it carefully.

Insurance Riders

It’s a truth universally acknowledged that most people, in the U.S. at least, don’t even like to think about the topic of life insurance. This, in turn, can lead to procrastination when it comes to making a decision on the right coverage and amount–until one becomes seriously ill or disabled.
Unfortunately, at this point, it’s now too late to make that life insurance decision, because it’s difficult – if not impossible – to obtain this type of coverage after you’ve taken a physical turn for the worse. From an emotional and financial standpoint, it’s really not much different from a base jumper who launches himself off a cliff only to remember he forgot to strap his parachute on.
When exactly is it “too late?” Well, that term can mean a variety of things. But overall, it refers to the inadvertent act of leaving those who count on your income or support to fend for themselves were you suddenly no longer here for them.
However, by being proactive, by getting ahead of the curve before you suffer a serious medical misfortune, it’s not only possible but easy to obtain the right kind and amount of life insurance and save money on your premiums at the same time. When contemplating this decision, here are a few key things to consider:
Payment of Debt
Imagine for a moment: if something were to happen to you today, how much debt would you leave behind for your family to deal with? Do you have a mortgage? A car payment? More than one? What about student loan balances, credit card debt, and/or any business or personal loans you’ve been working to pay down over the past several years?
Think about it. Without your income, just how much of a gap would there be between what is owed and how much income would be coming in without your paycheck each month? If the number is big – or for that matter, if there’s even a number at all – it’s probable that you need to cover that gap with life insurance.
While many people think that proceeds from life insurance are only meant to cover the amount of funeral costs – which can certainly be the case – these funds can also be used for so much more. Yet your loved ones can’t utilize any of these benefits if you don’t have adequate coverage or any coverage at all.
Replacement of Income
Without life insurance, you could also be leaving your spouse, children, and/or others who are depending on your income out in the cold. If, for instance, the payment of your mortgage or other important assets is dependent upon your income, the loss of those funds could cause a major, adverse lifestyle change, even including the possibility of your family having to sell their home at below market value, just to get out from under the monthly payments they can no longer afford.
If you are married and have a stay-at-home spouse and small children, the loss of your income due to an unexpected passing could have devastating consequences. The proceeds from a life insurance policy could provide the income that they need to carry on with everyday expenses such as food and utilities, not to mention that mortgage payment.
Keeping Future Promises
Having life insurance can also help you to keep future promises such as funding your child’s college tuition, wedding, or down payment on their first home in the event you’re no longer here to help them out yourself. Without those policy proceeds, years of saving and investing may still not provide the same amount of guaranteed funds.
Giving Uncle Sam His Share
One of the other big reasons you should consider owning life insurance is for the payment of estate taxes. Many people mistakenly believe that only the wealthy must pay estate tax at death. Unfortunately, that’s often not the case. Although many states lately have been phasing out or eliminating estate taxes at that level, others have yet to act. Do you live in one of those states?
Without the proper amount of coverage, your loved ones may be forced to come up with the money to pay these taxes from other resources such as savings or investments or the sales of other assets, oftentimes at below market value, particularly now in the still uncertain aftermath of the Great Recession.
Don’t Let It Be Too Late
Once you understand the true value of purchasing life insurance, it is important to purchase a policy sooner rather than later. Although this is an easy task to set aside, there are many good reasons to put it near the top of your list.
The premium that is charged for coverage is based in large part on your current age and health status when you apply. It goes without saying that as you get older, the premium tends to increase exponentially. Likewise, the risk of poor health also rises with age.
Even seemingly non-life-threatening ailments such as arthritis and high blood pressure can actually bump your policy expenses upward, as they can have a pronounced effect on overall life expectancy. Remember, you can’t insure the house if the garage is already on fire.
By purchasing a policy early in life, you can lock in coverage, not to mention a lower premium rate for the long term. This way, even if you were to encounter a serious health issue somewhere down the road, you and your loved ones would have the peace of mind knowing that important future financial events will be covered by your life insurance proceeds in the event you’re no longer available to address them yourself.

Read more at http://www.commdiginews.com/business-2/legal-insurance-marketing/pitfalls-being-uninsured-14969/#QlFZxUuuKBmA2MLk.99

It’s a truth universally acknowledged that most people, in the U.S. at least, don’t even like to think about the topic of life insurance. This, in turn, can lead to procrastination when it comes to making a decision on the right coverage and amount–until one becomes seriously ill or disabled.
Unfortunately, at this point, it’s now too late to make that life insurance decision, because it’s difficult – if not impossible – to obtain this type of coverage after you’ve taken a physical turn for the worse. From an emotional and financial standpoint, it’s really not much different from a base jumper who launches himself off a cliff only to remember he forgot to strap his parachute on.
When exactly is it “too late?” Well, that term can mean a variety of things. But overall, it refers to the inadvertent act of leaving those who count on your income or support to fend for themselves were you suddenly no longer here for them.
However, by being proactive, by getting ahead of the curve before you suffer a serious medical misfortune, it’s not only possible but easy to obtain the right kind and amount of life insurance and save money on your premiums at the same time. When contemplating this decision, here are a few key things to consider:
Payment of Debt
Imagine for a moment: if something were to happen to you today, how much debt would you leave behind for your family to deal with? Do you have a mortgage? A car payment? More than one? What about student loan balances, credit card debt, and/or any business or personal loans you’ve been working to pay down over the past several years?
Think about it. Without your income, just how much of a gap would there be between what is owed and how much income would be coming in without your paycheck each month? If the number is big – or for that matter, if there’s even a number at all – it’s probable that you need to cover that gap with life insurance.
While many people think that proceeds from life insurance are only meant to cover the amount of funeral costs – which can certainly be the case – these funds can also be used for so much more. Yet your loved ones can’t utilize any of these benefits if you don’t have adequate coverage or any coverage at all.
Replacement of Income
Without life insurance, you could also be leaving your spouse, children, and/or others who are depending on your income out in the cold. If, for instance, the payment of your mortgage or other important assets is dependent upon your income, the loss of those funds could cause a major, adverse lifestyle change, even including the possibility of your family having to sell their home at below market value, just to get out from under the monthly payments they can no longer afford.
If you are married and have a stay-at-home spouse and small children, the loss of your income due to an unexpected passing could have devastating consequences. The proceeds from a life insurance policy could provide the income that they need to carry on with everyday expenses such as food and utilities, not to mention that mortgage payment.
Keeping Future Promises
Having life insurance can also help you to keep future promises such as funding your child’s college tuition, wedding, or down payment on their first home in the event you’re no longer here to help them out yourself. Without those policy proceeds, years of saving and investing may still not provide the same amount of guaranteed funds.
Giving Uncle Sam His Share
One of the other big reasons you should consider owning life insurance is for the payment of estate taxes. Many people mistakenly believe that only the wealthy must pay estate tax at death. Unfortunately, that’s often not the case. Although many states lately have been phasing out or eliminating estate taxes at that level, others have yet to act. Do you live in one of those states?
Without the proper amount of coverage, your loved ones may be forced to come up with the money to pay these taxes from other resources such as savings or investments or the sales of other assets, oftentimes at below market value, particularly now in the still uncertain aftermath of the Great Recession.
Don’t Let It Be Too Late
Once you understand the true value of purchasing life insurance, it is important to purchase a policy sooner rather than later. Although this is an easy task to set aside, there are many good reasons to put it near the top of your list.
The premium that is charged for coverage is based in large part on your current age and health status when you apply. It goes without saying that as you get older, the premium tends to increase exponentially. Likewise, the risk of poor health also rises with age.
Even seemingly non-life-threatening ailments such as arthritis and high blood pressure can actually bump your policy expenses upward, as they can have a pronounced effect on overall life expectancy. Remember, you can’t insure the house if the garage is already on fire.
By purchasing a policy early in life, you can lock in coverage, not to mention a lower premium rate for the long term. This way, even if you were to encounter a serious health issue somewhere down the road, you and your loved ones would have the peace of mind knowing that important future financial events will be covered by your life insurance proceeds in the event you’re no longer available to address them yourself.

Read more at http://www.commdiginews.com/business-2/legal-insurance-marketing/pitfalls-being-uninsured-14969/#QlFZxUuuKBmA2MLk.99

It’s a truth universally acknowledged that most people, in the U.S. at least, don’t even like to think about the topic of life insurance. This, in turn, can lead to procrastination when it comes to making a decision on the right coverage and amount–until one becomes seriously ill or disabled.
Unfortunately, at this point, it’s now too late to make that life insurance decision, because it’s difficult – if not impossible – to obtain this type of coverage after you’ve taken a physical turn for the worse. From an emotional and financial standpoint, it’s really not much different from a base jumper who launches himself off a cliff only to remember he forgot to strap his parachute on.
When exactly is it “too late?” Well, that term can mean a variety of things. But overall, it refers to the inadvertent act of leaving those who count on your income or support to fend for themselves were you suddenly no longer here for them.
However, by being proactive, by getting ahead of the curve before you suffer a serious medical misfortune, it’s not only possible but easy to obtain the right kind and amount of life insurance and save money on your premiums at the same time. When contemplating this decision, here are a few key things to consider:
Payment of Debt
Imagine for a moment: if something were to happen to you today, how much debt would you leave behind for your family to deal with? Do you have a mortgage? A car payment? More than one? What about student loan balances, credit card debt, and/or any business or personal loans you’ve been working to pay down over the past several years?
Think about it. Without your income, just how much of a gap would there be between what is owed and how much income would be coming in without your paycheck each month? If the number is big – or for that matter, if there’s even a number at all – it’s probable that you need to cover that gap with life insurance.
While many people think that proceeds from life insurance are only meant to cover the amount of funeral costs – which can certainly be the case – these funds can also be used for so much more. Yet your loved ones can’t utilize any of these benefits if you don’t have adequate coverage or any coverage at all.
Replacement of Income
Without life insurance, you could also be leaving your spouse, children, and/or others who are depending on your income out in the cold. If, for instance, the payment of your mortgage or other important assets is dependent upon your income, the loss of those funds could cause a major, adverse lifestyle change, even including the possibility of your family having to sell their home at below market value, just to get out from under the monthly payments they can no longer afford.
If you are married and have a stay-at-home spouse and small children, the loss of your income due to an unexpected passing could have devastating consequences. The proceeds from a life insurance policy could provide the income that they need to carry on with everyday expenses such as food and utilities, not to mention that mortgage payment.
Keeping Future Promises
Having life insurance can also help you to keep future promises such as funding your child’s college tuition, wedding, or down payment on their first home in the event you’re no longer here to help them out yourself. Without those policy proceeds, years of saving and investing may still not provide the same amount of guaranteed funds.
Giving Uncle Sam His Share
One of the other big reasons you should consider owning life insurance is for the payment of estate taxes. Many people mistakenly believe that only the wealthy must pay estate tax at death. Unfortunately, that’s often not the case. Although many states lately have been phasing out or eliminating estate taxes at that level, others have yet to act. Do you live in one of those states?
Without the proper amount of coverage, your loved ones may be forced to come up with the money to pay these taxes from other resources such as savings or investments or the sales of other assets, oftentimes at below market value, particularly now in the still uncertain aftermath of the Great Recession.
Don’t Let It Be Too Late
Once you understand the true value of purchasing life insurance, it is important to purchase a policy sooner rather than later. Although this is an easy task to set aside, there are many good reasons to put it near the top of your list.
The premium that is charged for coverage is based in large part on your current age and health status when you apply. It goes without saying that as you get older, the premium tends to increase exponentially. Likewise, the risk of poor health also rises with age.
Even seemingly non-life-threatening ailments such as arthritis and high blood pressure can actually bump your policy expenses upward, as they can have a pronounced effect on overall life expectancy. Remember, you can’t insure the house if the garage is already on fire.
By purchasing a policy early in life, you can lock in coverage, not to mention a lower premium rate for the long term. This way, even if you were to encounter a serious health issue somewhere down the road, you and your loved ones would have the peace of mind knowing that important future financial events will be covered by your life insurance proceeds in the event you’re no longer available to address them yourself.

Read more at http://www.commdiginews.com/business-2/legal-insurance-marketing/pitfalls-being-uninsured-14969/#QlFZxUuuKBmA2MLk.99

It’s a truth universally acknowledged that most people, in the U.S. at least, don’t even like to think about the topic of life insurance. This, in turn, can lead to procrastination when it comes to making a decision on the right coverage and amount–until one becomes seriously ill or disabled.
Unfortunately, at this point, it’s now too late to make that life insurance decision, because it’s difficult – if not impossible – to obtain this type of coverage after you’ve taken a physical turn for the worse. From an emotional and financial standpoint, it’s really not much different from a base jumper who launches himself off a cliff only to remember he forgot to strap his parachute on.
When exactly is it “too late?” Well, that term can mean a variety of things. But overall, it refers to the inadvertent act of leaving those who count on your income or support to fend for themselves were you suddenly no longer here for them.
However, by being proactive, by getting ahead of the curve before you suffer a serious medical misfortune, it’s not only possible but easy to obtain the right kind and amount of life insurance and save money on your premiums at the same time. When contemplating this decision, here are a few key things to consider:
Payment of Debt
Imagine for a moment: if something were to happen to you today, how much debt would you leave behind for your family to deal with? Do you have a mortgage? A car payment? More than one? What about student loan balances, credit card debt, and/or any business or personal loans you’ve been working to pay down over the past several years?
Think about it. Without your income, just how much of a gap would there be between what is owed and how much income would be coming in without your paycheck each month? If the number is big – or for that matter, if there’s even a number at all – it’s probable that you need to cover that gap with life insurance.
While many people think that proceeds from life insurance are only meant to cover the amount of funeral costs – which can certainly be the case – these funds can also be used for so much more. Yet your loved ones can’t utilize any of these benefits if you don’t have adequate coverage or any coverage at all.
Replacement of Income
Without life insurance, you could also be leaving your spouse, children, and/or others who are depending on your income out in the cold. If, for instance, the payment of your mortgage or other important assets is dependent upon your income, the loss of those funds could cause a major, adverse lifestyle change, even including the possibility of your family having to sell their home at below market value, just to get out from under the monthly payments they can no longer afford.
If you are married and have a stay-at-home spouse and small children, the loss of your income due to an unexpected passing could have devastating consequences. The proceeds from a life insurance policy could provide the income that they need to carry on with everyday expenses such as food and utilities, not to mention that mortgage payment.
Keeping Future Promises
Having life insurance can also help you to keep future promises such as funding your child’s college tuition, wedding, or down payment on their first home in the event you’re no longer here to help them out yourself. Without those policy proceeds, years of saving and investing may still not provide the same amount of guaranteed funds.
Giving Uncle Sam His Share
One of the other big reasons you should consider owning life insurance is for the payment of estate taxes. Many people mistakenly believe that only the wealthy must pay estate tax at death. Unfortunately, that’s often not the case. Although many states lately have been phasing out or eliminating estate taxes at that level, others have yet to act. Do you live in one of those states?
Without the proper amount of coverage, your loved ones may be forced to come up with the money to pay these taxes from other resources such as savings or investments or the sales of other assets, oftentimes at below market value, particularly now in the still uncertain aftermath of the Great Recession.
Don’t Let It Be Too Late
Once you understand the true value of purchasing life insurance, it is important to purchase a policy sooner rather than later. Although this is an easy task to set aside, there are many good reasons to put it near the top of your list.
The premium that is charged for coverage is based in large part on your current age and health status when you apply. It goes without saying that as you get older, the premium tends to increase exponentially. Likewise, the risk of poor health also rises with age.
Even seemingly non-life-threatening ailments such as arthritis and high blood pressure can actually bump your policy expenses upward, as they can have a pronounced effect on overall life expectancy. Remember, you can’t insure the house if the garage is already on fire.
By purchasing a policy early in life, you can lock in coverage, not to mention a lower premium rate for the long term. This way, even if you were to encounter a serious health issue somewhere down the road, you and your loved ones would have the peace of mind knowing that important future financial events will be covered by your life insurance proceeds in the event you’re no longer available to address them yourself.

Read more at http://www.commdiginews.com/business-2/legal-insurance-marketing/pitfalls-being-uninsured-14969/#QlFZxUuuKBmA2MLk.99

It’s a truth universally acknowledged that most people, in the U.S. at least, don’t even like to think about the topic of life insurance. This, in turn, can lead to procrastination when it comes to making a decision on the right coverage and amount–until one becomes seriously ill or disabled.
Unfortunately, at this point, it’s now too late to make that life insurance decision, because it’s difficult – if not impossible – to obtain this type of coverage after you’ve taken a physical turn for the worse. From an emotional and financial standpoint, it’s really not much different from a base jumper who launches himself off a cliff only to remember he forgot to strap his parachute on.
When exactly is it “too late?” Well, that term can mean a variety of things. But overall, it refers to the inadvertent act of leaving those who count on your income or support to fend for themselves were you suddenly no longer here for them.
However, by being proactive, by getting ahead of the curve before you suffer a serious medical misfortune, it’s not only possible but easy to obtain the right kind and amount of life insurance and save money on your premiums at the same time. When contemplating this decision, here are a few key things to consider:
Payment of Debt
Imagine for a moment: if something were to happen to you today, how much debt would you leave behind for your family to deal with? Do you have a mortgage? A car payment? More than one? What about student loan balances, credit card debt, and/or any business or personal loans you’ve been working to pay down over the past several years?
Think about it. Without your income, just how much of a gap would there be between what is owed and how much income would be coming in without your paycheck each month? If the number is big – or for that matter, if there’s even a number at all – it’s probable that you need to cover that gap with life insurance.
While many people think that proceeds from life insurance are only meant to cover the amount of funeral costs – which can certainly be the case – these funds can also be used for so much more. Yet your loved ones can’t utilize any of these benefits if you don’t have adequate coverage or any coverage at all.
Replacement of Income
Without life insurance, you could also be leaving your spouse, children, and/or others who are depending on your income out in the cold. If, for instance, the payment of your mortgage or other important assets is dependent upon your income, the loss of those funds could cause a major, adverse lifestyle change, even including the possibility of your family having to sell their home at below market value, just to get out from under the monthly payments they can no longer afford.
If you are married and have a stay-at-home spouse and small children, the loss of your income due to an unexpected passing could have devastating consequences. The proceeds from a life insurance policy could provide the income that they need to carry on with everyday expenses such as food and utilities, not to mention that mortgage payment.
Keeping Future Promises
Having life insurance can also help you to keep future promises such as funding your child’s college tuition, wedding, or down payment on their first home in the event you’re no longer here to help them out yourself. Without those policy proceeds, years of saving and investing may still not provide the same amount of guaranteed funds.
Giving Uncle Sam His Share
One of the other big reasons you should consider owning life insurance is for the payment of estate taxes. Many people mistakenly believe that only the wealthy must pay estate tax at death. Unfortunately, that’s often not the case. Although many states lately have been phasing out or eliminating estate taxes at that level, others have yet to act. Do you live in one of those states?
Without the proper amount of coverage, your loved ones may be forced to come up with the money to pay these taxes from other resources such as savings or investments or the sales of other assets, oftentimes at below market value, particularly now in the still uncertain aftermath of the Great Recession.
Don’t Let It Be Too Late
Once you understand the true value of purchasing life insurance, it is important to purchase a policy sooner rather than later. Although this is an easy task to set aside, there are many good reasons to put it near the top of your list.
The premium that is charged for coverage is based in large part on your current age and health status when you apply. It goes without saying that as you get older, the premium tends to increase exponentially. Likewise, the risk of poor health also rises with age.
Even seemingly non-life-threatening ailments such as arthritis and high blood pressure can actually bump your policy expenses upward, as they can have a pronounced effect on overall life expectancy. Remember, you can’t insure the house if the garage is already on fire.
By purchasing a policy early in life, you can lock in coverage, not to mention a lower premium rate for the long term. This way, even if you were to encounter a serious health issue somewhere down the road, you and your loved ones would have the peace of mind knowing that important future financial events will be covered by your life insurance proceeds in the event you’re no longer available to address them yourself.

Read more at http://www.commdiginews.com/business-2/legal-insurance-marketing/pitfalls-being-uninsured-14969/#QlFZxUuuKBmA2MLk.99

It’s a truth universally acknowledged that most people, in the U.S. at least, don’t even like to think about the topic of life insurance. This, in turn, can lead to procrastination when it comes to making a decision on the right coverage and amount–until one becomes seriously ill or disabled.
Unfortunately, at this point, it’s now too late to make that life insurance decision, because it’s difficult – if not impossible – to obtain this type of coverage after you’ve taken a physical turn for the worse. From an emotional and financial standpoint, it’s really not much different from a base jumper who launches himself off a cliff only to remember he forgot to strap his parachute on.
When exactly is it “too late?” Well, that term can mean a variety of things. But overall, it refers to the inadvertent act of leaving those who count on your income or support to fend for themselves were you suddenly no longer here for them.
However, by being proactive, by getting ahead of the curve before you suffer a serious medical misfortune, it’s not only possible but easy to obtain the right kind and amount of life insurance and save money on your premiums at the same time. When contemplating this decision, here are a few key things to consider:
Payment of Debt
Imagine for a moment: if something were to happen to you today, how much debt would you leave behind for your family to deal with? Do you have a mortgage? A car payment? More than one? What about student loan balances, credit card debt, and/or any business or personal loans you’ve been working to pay down over the past several years?
Think about it. Without your income, just how much of a gap would there be between what is owed and how much income would be coming in without your paycheck each month? If the number is big – or for that matter, if there’s even a number at all – it’s probable that you need to cover that gap with life insurance.
While many people think that proceeds from life insurance are only meant to cover the amount of funeral costs – which can certainly be the case – these funds can also be used for so much more. Yet your loved ones can’t utilize any of these benefits if you don’t have adequate coverage or any coverage at all.
Replacement of Income
Without life insurance, you could also be leaving your spouse, children, and/or others who are depending on your income out in the cold. If, for instance, the payment of your mortgage or other important assets is dependent upon your income, the loss of those funds could cause a major, adverse lifestyle change, even including the possibility of your family having to sell their home at below market value, just to get out from under the monthly payments they can no longer afford.
If you are married and have a stay-at-home spouse and small children, the loss of your income due to an unexpected passing could have devastating consequences. The proceeds from a life insurance policy could provide the income that they need to carry on with everyday expenses such as food and utilities, not to mention that mortgage payment.
Keeping Future Promises
Having life insurance can also help you to keep future promises such as funding your child’s college tuition, wedding, or down payment on their first home in the event you’re no longer here to help them out yourself. Without those policy proceeds, years of saving and investing may still not provide the same amount of guaranteed funds.
Giving Uncle Sam His Share
One of the other big reasons you should consider owning life insurance is for the payment of estate taxes. Many people mistakenly believe that only the wealthy must pay estate tax at death. Unfortunately, that’s often not the case. Although many states lately have been phasing out or eliminating estate taxes at that level, others have yet to act. Do you live in one of those states?
Without the proper amount of coverage, your loved ones may be forced to come up with the money to pay these taxes from other resources such as savings or investments or the sales of other assets, oftentimes at below market value, particularly now in the still uncertain aftermath of the Great Recession.
Don’t Let It Be Too Late
Once you understand the true value of purchasing life insurance, it is important to purchase a policy sooner rather than later. Although this is an easy task to set aside, there are many good reasons to put it near the top of your list.
The premium that is charged for coverage is based in large part on your current age and health status when you apply. It goes without saying that as you get older, the premium tends to increase exponentially. Likewise, the risk of poor health also rises with age.
Even seemingly non-life-threatening ailments such as arthritis and high blood pressure can actually bump your policy expenses upward, as they can have a pronounced effect on overall life expectancy. Remember, you can’t insure the house if the garage is already on fire.
By purchasing a policy early in life, you can lock in coverage, not to mention a lower premium rate for the long term. This way, even if you were to encounter a serious health issue somewhere down the road, you and your loved ones would have the peace of mind knowing that important future financial events will be covered by your life insurance proceeds in the event you’re no longer available to address them yourself.

Read more at http://www.commdiginews.com/business-2/legal-insurance-marketing/pitfalls-being-uninsured-14969/#QlFZxUuuKBmA2MLk.99

People generally approach most financial concepts with a sense of responsibility. We strive to apply them because we want to be financially secure. In contrast, insurance is viewed with a certain level of skepticism. Rightfully so. Insurance plays on both logic and emotion.

Logically, we purchase insurance to cover the unknowns that could significantly derail our financial plans. Emotionally, we may over insure to financially protect us from every peril. As a consumer, you need to approach insurance with a heightened level of scrutiny. The key is knowing relevant facts about your risks and developing a strategy to either mitigate them or insure against them.

Life insurance riders have a sketchy reputation. A rider is an added policy provision that enhances the coverage of the base policy for an additional charge. Riders are often seen as an up-sell — an extra charge for insurance that might be useful in a specific set of circumstances. If insurance riders are so superfluous, why do they exist?

Last week, I discussed hybrid life insurance and long-term care policies. Essentially, the long-term care provision is a rider that allows you to accelerate your death benefit to pay for long-term care expenses. In many circumstances, this is valuable and may be able to provide an affordable alternative to long-term care coverage. However, it should not be confused with a “chronic illness accelerated benefit,” which may be significantly limited in scope. Another favorable rider may be a “spousal” rider, which provides term insurance on the insured’s spouse. This may be useful in limited cases where the spouse does not qualify for a policy of their own.

By adding riders without considering your personal situation, you run the risk of over insuring. For example, a business owner who has a good own-occupation disability policy in place probably does not need to add a “waiver of premium” or “disability income” rider to their life insurance. It is important to take a step back and look at the cost-benefit of riders and see if you are already addressing a risk in another, more effective way.

Then there are the riders that come at no cost. These may include an “accelerated benefits” rider; an “automatic premium loan,” which taps the cash value to keep a policy from lapsing, or a “term conversion” rider, which allows you to convert your term insurance to permanent life insurance. Most life insurance policies consider these standard features rather than value-added benefits.

Riders may be attractive to some customers, but you need to understand the rider and the terms of what would be required for you to qualify for the benefits. You need to be careful not to get so caught up in the emotional aspect of protecting your family that you miss the value proposition of the insurance policy. You may be better off addressing a risk by finding a policy that covers a singular issue with your insurance adviser instead of adding riders to make one insurance product solve all your problems.

Maybank - Deferred Annuity

Malayan Banking Bhd (Maybank) has expanded into the deferred annuity market through its “Smart Retirement Xtra” (SMX) plan, the first deferred annuity insurance plan in Malaysia through the Bancassurance channel.

“The SRX completes Maybank’s range of retirement plans and expands Maybank’s portfolio of life insurance offerings, which currently include endowment, investment-linked, general life and takaful life insurance products,” the bank said in a statement today.

 

Targeting to generate RM48 million in premiums this year, SRX aims to tap the potential of the life insurance market in Malaysia, which currently has a penetration rate of 41.22 per cent, it said.

SRX is designed to enable customers to plan for their future retirement, while benefiting from the special tax relief offered for the purchase of such plans. 

MCIS Remarry Sanlam

Sanlam Emerging Markets, a unit of South African insurance company Sanlam Ltd., said it’s buying 51 percent of Malaysia’s MCIS Zurich Insurance Berhad for about 1.25 billion rand ($118.4 million).

 

Sanlam will first buy a 40 percent stake in MCIS Zurich from shareholder Koperasi MCIS Berhad and then make an offer to acquire 11 percent from minority investors, the Cape Town-based company said in a statement today. Should there be a lack of interest in the offer from minorities, Sanlam will go back to Koperasi to make up the difference, it said.

Zurich Divorces MCIS

Zurich Asia Holdings Ltd, a wholly-owned subsidiary of Zurich Insurance Group Ltd, has entered into an unconditional agreement to sell its entire stake of 40,113,628 ordinary shares in Malaysian insurer MCIS Zurich Insurance Bhd (MCISZ) to Koperasi MCIS Bhd.

The stake represents 40% of the total issued and paid-up share capital of MCISZ, said Zurich Insurance Group in a statement released in Hong Kong today.

Upon completion of the sale, which is expected to take place on May 5, the gross sale proceeds to be realised by Zurich will be RM304 million (about US$93 million), it said.

“The disposal of our stake in MCISZ will satisfy the commitment made to Bank Negara Malaysia to rationalise our holding in two licences, following our acquisition of Malaysian Assurance Alliance Bhd (MAA),” said Geoff Riddell, Zurich’s chairman for Asia Pacific, Middle East and Africa.

In addition, it allows the company to focus exclusively on the development of its wholly-owned subsidiary Zurich Insurance Malaysia and resolves any customer confusion arising from the fact that the Zurich brand has been carried, since the middle of 2012, by two separate companies.

In 2011, Zurich acquired 100% of the total issued and paid-up share capital of the life and general insurer MAA and subsequently renamed it Zurich Insurance Malaysia Bhd in 2012.

The acquisition combined MAA’s strong local heritage and market position with Zurich’s global insurance expertise.

“Through Zurich Insurance Malaysia, we are well placed to capture growth in both the life and general insurance segments of the market and this move will further strengthen the growth prospects of these businesses over the long term,” he said.

Folllowing thwe successful completion of the transaction, MCISZ will no longer be a member of, or associated with, Zurich Insurance Group.

Zurich Insurance Group is a leading multi-line insurer that serves its customers in global and local markets.

Increased Premium - High Blood Pressure

Insurance agents have called on the central bank to put a stop to “unjustifiable hikes”.
They are concerned that policyholders could lose their coverage if insurance charges and premiums continue to rise with medical inflation.

A 25-year industry veteran said Bank Negara, together with all stakeholders, should address the issue of rising medical costs or the country could end up with a “major social problem” soon. For now, you may only be paying RM8 or RM10 more in monthly premiums but what about six months down the road if there’s another hike? 

If nothing is done to curb rising insurance policy prices, government hospitals will find it hard to cope as the uninsured cannot afford private care,” she said.

A senior insurance agency manager, who declined to be named, said the 10% to 20% (depending on the policyholder’s age) rise in premiums had been taking place industry-wide. The pinch would be felt by those aged 38 and above, with senior citizens “quite possibly” paying over RM100 more monthly, he said.

“Traditionally, the increase would only be for upgraded products but lately, insurance companies have started increasing charges and premiums on existing policies,” the manager said.

“This means that the policyholder has no choice but to fork out the extra or risk losing their coverage. Senior citizens and pensioners would suffer the most because if they cannot afford to pay more, they will have to look for a new policy which, at that age, would be very expensive, if not difficult.”

An agency manager with another insurance firm said those in their 20s need not worry “but once you hit 30”, be prepared for yearly premium rises of between 5% and 10%.

He said some insurance companies increased their product premiums because the medical cards were making losses.

Meanwhile, another agent said it was unfair for insurance companies to increase fees across the board when only one or two plans were making losses. “Overall, they are still raking in good profits so, these hikes are meant to prevent their profit margin from shrinking – it is not a question of loss or profit.

“We have been warned to expect hikes every two to three years, depending on the claims made,” he said. “I do not know how to face my clients.”

According to the Life Insurance Association of Malaysia 2013 annual report, the year’s new business total premium was RM8.19bil, while the total premium for in-force policies amounted to RM28.3bil, a growth of 12.8%.

Claims paid out last year amounted to RM6.9bil.

KISS - Keep It Sweet & Simple

To protect consumers, Bank Negara wants the insurance industry to make their policies easier for the public to understand. The regulatory body has issued product transparency and disclosure guidelines to insurance providers, emphasising the importance of using “plain and intelligible language” in policy documents.

This is to make it easy for consumers to understand their contractual rights and responsibilities, so that they can make informed decisions, a central bank official said.

Work is already in progress to improve the wording in hospital and surgical insurance policies to ensure that simple words are used to explain and draw attention to important terms and conditions of the policy, including, in particular, the medical conditions covered and those excluded from the policy.

 

On the pricing of medical and health insurance products, she said these were determined by the insurance company or takaful operator based on actuarial principles. Any changes to factors like exposure to anti-selection risk and medical inflation might lead to a review of the premiums, she explained.

There are, however, safeguards in place. Insurance product pricing requires a qualified actuary of the insurance company to certify the reasonableness of the premium charged. This is influenced by economic factors such as medical inflation, mortality and morbidity rate as well as investment performance of the insurer.

Medical Premium Increased

Faced with higher claims from rising medical costs, many insurance companies have increased their charges and premiums by up to 20%.

National Association of Malaysian Life Insurance Field Force and Advisers (Namlifa) said most companies had adjusted their charges and premiums for medical, health and investment-linked policies over the last few months to cope with medical inflation.

Some companies are offering policy upgrades and at the same time increasing premiums while others just raise the existing policy charges and premiums adding that insurance companies only needed to issue a 30-day written notice to policyholders for the hike to take effect.

Policyholders must comply with the new rates or risk their policy lapsing. Namlifa admitted that agents have a tough time explaining the increases and had a duty to protect the welfare of its 12,000 members and policyholders.

Prudential Assurance Malaysia Berhad (PAMB) recently notified its policyholders that the PRUmajor med plans (PMM) premiums and charges would be increased effective from the individual’s policy anniversary date. PMM is a medical and hospitalisation rider that is attached to investment-linked insurance plans (known as PRUlink plans) offered by PAMB.

PAMB CEO Philip Seah said only those with a PMM plan attached to their investment-linked policies were included in the revision. He said the percentage of increase varied from individual to individual, depending on the type of plan. Any revision was only made after taking into consideration the rising costs and frequency of people seeking treatment. This was to ensure that policyholders continued to enjoy medical coverage in the long run.

“We’ve increased the lifetime limit of all PMM plans to ensure that policyholders are able to cope with rising medical inflation,” he said, adding that medical inflation in Malaysia was currently about 10% yearly and projected to continue rising.

In December, the Government allowed a maximum 14.4% rise in private medical fees – almost half of the 30% requested by the Malaysian Medical Association (MMA).

General Insurance Association of Malaysia (PIAM) chairman Chua Seck Guan said medical and health insurance, which accounted for RM920mil of the sector’s total market share last year, was projected to grow as demand in the healthcare sector increased in line with the country’s development as a medical hub.

MMA president Datuk Dr N.K.S. Tharmaseelan said insurance companies should control wasteful expenditure by hospitals instead of increasing premiums. They should also be “eagle-eyed” when presented with hospital bills and speak up when they are overcharged.

“(Instead) they take the easy way out by arm-twisting doctors to lower their fees,” he said. Fomca secretary-general Datuk Paul Selvaraj said insurance companies should not hold consumers to ransom because health insurance was a necessity.

“Any increase should only be on new or upgraded policies and policyholders must be given an option whether or not they want the extra benefits. If they are happy with the present coverage, insurance companies should not force them to pay more,” he said.

Increasing Cost Of health care

If you’re a Malaysian and in need of medical treatment, it will feel as if your options are dismal.

While public healthcare is generally cheap, the waiting line for it can make a big difference to your condition and comfort. The truth is; there are just too many people for the hospitals to cope.

If you decide to go with private healthcare, the exorbitant prices have pushed many families to go into debt. With the amendment to the Private Healthcare Facilities and Services Act 1998, medical fees have now been further increased. While this is a good thing for doctors in the profession who haven’t seen an increase in the past 12 years, to the rest of the public it’s a bigger burden few can carry.

Rising medical costs
One woman shared her story to The Star newspaper on how her family had to pay almost RM60,000 in medical expenses for their 87-year-old mother who was hospitalised in a private hospital for 35 days. Their mother was in the Critical Care Unit for a week, was moved to a single-bed room and did not have any surgery, yet the bill was crazily high and the details on the bill were vague. The worse was when she was told they were charged RM85 for any doctor who came to visit their mother even when it was supposed to be a routine check-up. This also included a nutritionist which the woman found unnecessary as her mother didn’t really need one. Even a nurse’s visit would be charged, especially if their mother rang the nurse’s bell after 9.30pm.

And therein lies the problem with many private healthcare institutions. The lack of clarity on how they charge their patients and the high costs for a lot of their services has caused many patients and their families to struggle even more after getting the medical care they need. There are even cases where those in need of treatment opt out instead as they do not wish to burden their families even further with the costs and even debt they may fall into. And this almost always leads to an early death.

With the new increase in place, consumers will be seeing their bills rise even more. Consultation fees at private hospitals are up by 200%, with the usual RM10-RM35 now up to RM30-RM125. A visit to a specialist will now cost anywhere between RM80-RM235, previously it ranged between RM60-RM180. A medical examination now would cost RM45-RM230. If a pregnant woman requires caesarean section, she will be charged RM2,719 now, an increase from RM2,365 before. A lot of these increases range between 14% to up to 33.3%

That’s not the only cost to look out for when it comes to hospitalisation, for while the prices of other medical costs such as medical equipment used and even medication remain the same, they have and remain as expensive as they have always been.

The painful truth
There doesn’t seem to be much respite for those who are in need of or will need medical assistance. Insurance premiums will also be increased for these new medical policies, and some even predict that employers may cut down on medical benefits as well. In the meantime, Health Minister Dr S Subramaniam insists that the medical fee hike is meant to protect the people and that consumers could still dictate the fees in the private medical industry by choosing practitioners with lower charges. Other doctors find the price hike too little, especially since it had been 12 years since the last hike. It would appear that the excuse “we haven’t raised rates in many years” is fair game across any industry now seeking to cash in and further strangle the finances of the average Malaysian.

Despite the many assurances from doctors and other medical practitioners that the price hike is for the best, its heartaches all around for the rest of Malaysia which no medication can cure. As the cost of living continues to soar, it appears that even the cost of staying alive shows little mercy during these tough times.