Life Insurance Agent

Every year there are many new comers joining insurance sales business, at the same time, there is a mass exodus of insurance agents leaving for other fields giving reasons such as lack of training, inadequate support, dysfunctional supervisors etc.

More often than not, the actual reason why insurance agents quit the business is because they did not make the money they want from insurance selling. Very few people will leave a business if the business brings them the kind of income that can support their desired lifestyle.

There are always people considering a career switch to insurance business. They are curious to know how to go about to become insurance agents. Perhaps before they look for the answers to "how", they may like to seek "why". If your reason to do something is not compelling enough, it is always very easy for you to give up your endeavor.

The number of insurance agents quitting the business could have been much reduced if they joined the industry with the right reasons. The right reasons must also be strong and resilient enough to stand all trials and tribulations.

The following are the 5 wrong reasons for joining insurance business:

Try it out
A successful insurance business is the result of well thought planning and diligent execution. Equally important is the presence of purpose in life and goals in the business. A try-it-out attitude bears little commitment and anybody with this outlook most probably will not go far in any business venture.

Life insurance business in particular requires long-term commitment because one of the reasons why your customers buy the life policies from you is because of their belief that you would stay long enough in the business to service them.

Just look for a job
If you are looking for a job that gives you an income just good enough to settle your household bills and meet all your basic needs, then insurance selling can be a very tough job for you. You may find that it is not worthwhile your efforts to earn that kind of money.

There are times you may find yourself working twice as hard but making the same amount of income like what you made in your previous job. We always pay a huge price for having a self-limiting belief.

Get bored with existing job
Insurance is not a place for you to escape from your job problems. Many who are frustrated with their existing jobs may not be very happy with insurance selling too.

If you are in insurance selling, you are always in emotional roller coaster. You can get upset, frustrated, disappointed but there are also moments of joy and excitements to balance out. The question is whether you are ready for such roller coaster ride.

Looking for more free time
Insurance business allows you to be your own boss, at the same time this can also work against you because you can decide not to work.

Having more free time to yourself should not be the immediate objective you have in mind when becoming an insurance agent. You can only be rewarded with more leisure time after years of hard work and after you have built up substantial amount of passive income such as renewal income.

Learn more about insurance
When you venture into insurance business, there are plenty of learning opportunities but learning is only a means to bring you to where you want to go. If you want to know more about insurance business and the reason for you to be an insurance agent is to learn, then you will not go far.

Once you believe you learn enough, you would have already achieved what you want and there is no more reason for you to stay in this business. Insurance business is meant for people with big dreams and huge ambitions. They see opportunities in insurance business and believe insurance will take them to their dreams and goals in life.

They arm their belief with entrepreneur spirit and they want to own a business that they can proudly claim is theirs where they can put their signature on it. They are emotionally attached to their success and are willing to sacrifice for success.

If you are thinking of becoming an insurance agent, one of the questions you would like to ask yourself is why you want to join insurance business. The answers to this question would provide an insight if you are ready for this business.

iQuit - A Great Loss

Apple's legendary co-founder and top ideas man Steve Jobs has resigned as chief executive in a move long expected after he began a dramatic fight with cancer.

Jobs is a living legend in Silicon Valley. He is the beloved visionary behind the Macintosh computer, the iPod, the iPhone and the iPad as well as the iTunes online shop.

Born on February 24, 1955 in San Francisco to a single mother and adopted by a couple in nearby Mountain View at barely a week old, he grew up among the orchards that would one day become the technology hub known as Silicon Valley.

Jobs was 21 and Steve Wozniak 26 when they founded Apple Computer in the garage of Jobs's family home in 1976. Under Jobs, the company introduced its first Apple computers and then the Macintosh, which became wildly popular in the 1980s.

Jobs left Apple in 1985 after an internal power struggle and started NeXT Computer company specializing in sophisticated workstations for businesses. He co-founded Academy-Award-winning Pixar in 1986 from a former Lucasfilm computer graphics unit that he reportedly bought from movie industry titan George Lucas for $10 million.

Apple's luster faded after Jobs left the company, but they reconciled in 1996 with Apple buying NeXT for 429 million dollars and Jobs ascending once again to the Apple throne.

Since then, Apple has gone from strength to strength as Jobs revamped the Macintosh line, revolutionizing modern culture and launching a "post-PC era" in which personal computers give way to smart mobile gadgets.

The YES Man

As a leader, one of the most critical things you need to do is put the right team of people in place to support your agenda. Selecting these people correctly will be key to your success. One of the most common mistakes that leaders make is to surround themselves with “Yes Men”. Worse yet, as leaders become more powerful, sometimes they use their authority to create Yes Men by ensuring that it doesn’t pay to speak your mind on issues.

A Yes Man is someone that won’t challenge your position and in fact they will always tell you what you want to hear and then scurry about to execute your plan. Generally, Yes Men can be easily found in a crowd because they are the up and coming risers, trying to advance their careers as quickly as they can. Early on they seem to have a lot of success with their strategy of pleasing the leader at all costs.

It may seem like a good idea to surround yourself with Yes Men for two main reasons: 1) they will execute as directed and 2) they will never challenge your authority. However, here are some of the potential drawbacks of surrounding yourself with these types of people. For example, to gain credibility you have to implement successful projects. Just because your Yes Man executes as directed doesn’t mean the project will be successful. Often, front line knowledge is required to make a project successful. If you surround yourself with people that don’t challenge your plan, you may miss out on critical information that would otherwise make your project successful.

Yes Men tend to become resentful over time. It can be a slippery slope that starts when they don’t feel recognized or appreciated for their loyalty. Or they may feel that you abuse your power over them. Because they want to succeed, they are not likely to rebel openly but it is common for this type of individual to go underground and subversively undermine you. They may succeed in their efforts if they are your only source of information. People who are forced to become Yes Men under your watch, are the most dangerous of all because they are taking a step backward and they may feel that their confidence is under attack.

Your vulnerability in this scenario can be mitigated if you make it your business to “know your business” by listening carefully to credible people that dare to speak their mind.

A smart leader will encourage honest dialogue because it fosters mutual respect between them and their employees. It’s important to listen to differing points of view and then make your decision. Obviously, people will come at an issue based on their own background and experiences as well as with their own agenda. But it’s incumbent on you to give due attention to their arguments.

Leadership by consensus is weak leadership and that’s not what we are advocating here. But what we do recommend is that you pay attention to your decision making protocol to ensure that it is sustainable over time. That means you will need to rely on your team over and over again so take care to avoid creating an environment where they can’t highlight risks and potential opportunities in your plan.

A good protocol to use involves breaking the project up into clearly delineated phases. In the first phase allow your team time to contribute freely to your planning/strategizing including encouraging debate, pointing out risks and entertaining alternative solutions. Follow that with phase two, a period for your decision making and then bring the team together for a clearly defined third phase of implementation where you clearly articulate your expectations. Other phases include circling back for continuous improvement. This methodology will leave everyone feeling that their input was considered and will reduce the possibility of creating Yes Men under your regime.

Arrogance

In a recent incident in a leading Italian restaurant in Bangsar, two tycoons (both Tan Sris), came in with a horde of bodyguards and were miffed to find that there was no private room available to them. They then refused to pay corkage for the wine they brought with them although the restaurant had invested in an extensive collection of wines.

The restaurant, to their credit, refused to budge on this policy and the two big shots rather than exit with their tails between their legs, reluctantly agreed.

At the end of their meal, in spite of being told that it was a non-smoking area, both insisted on lighting up a pair of gigantic cigars (possibly compensation for some sexual inadequacy) in the dining room. Again, to their utter dismay, the restaurant would not allow them to do so and suggested they go to the bar below where they could continue their discussions on their deals and the possible union of their respective children.

The two left vowing never to return to that fine restaurant that only insisted on adhering to long standing policies. Good riddance, I say. Such people are a burden to society and we should be shamed by the inordinate respect given to these titled rogues.

Anyone know the name of this restaurant: We whould give them a big award - for their courage and standing-up to top-dog.

Words Of Wisdom

There is not that much that separates the business world and politics as far as alliances are concerned. In politics, it is said that there are no permanent friends, only permanent interests. Politicians are fond of referring to their adversaries as “strange bedfellows” but will not hesitate to climb into the same bed if it suits their interests.

In the world of high-finance, bitter rivals can easily sleep on in the same bed, so long as it is good for the bottom line. For some business people, however, friendship is not a word that exists in their vocabulary. Many good friends who go into business together learn the hard way that years of friendship count for nothing once the business issues get into the way.

RBC Takaful

The risk-based capital (RBC) framework for the takaful industry is expected to be implemented in the first half of next year, paving the way for stricter capital requirements for Islamic insurance.

The move would enable takaful players to hold appropriate level of capital to undertake risks in their daily operations.

Takaful Ikhlas Sdn Bhd president and chief executive officer Datuk Syed Moheeb Syed Kamarulzaman said currently the exposure draft of the framework had been released and feedback was being collected from the market.

“We do not expect any delay in the implementation for the RBC framework for the takaful industry as it has been talked in the industry for a while. Unlike the conventional RBC framework, which was given a one-year period for compliance, we expect the actual execution for the RBC to be in a much shorter timeframe,’’ he told a briefing at the 1st Malaysia Insurance Summit 2011.

Moheeb, who is also the chairman of the Malaysian Takaful Association (MTA), said he was upbeat that all the takaful players would be able to comply with the framework upon its implementation.

He said there were one or two takaful companies currently “fine tuning” their portfolio to meet the framework.

Asked on the portfolio mix of the RBC for takaful compared with the RBC for conventional insurers, he said it would be slightly different as there might be heavier loans for credit-base weightage for the former resulting in higher charges for some takaful players under the takaful framework. This is in view of larger loans portfolio for Islamic finance coupled with lesser number of players in the takaful market.

The RBC framework for the conventional insurance sector came on stream in January 2009.

Under the conventional framework, insurance companies are required to have a minimum of 130% of supervisory capital-adequacy ratio.

The capitalisation of the insurance industry currently is strong at a CAR of 224.6%.

At present there are 11 takaful operators and three retakaful operators with another retakaful operator about to join the stable.

According to Moheeb, this year he expected the growth rate for the industry to exceed 20% for the family and general takaful business, higher than the previous year, with the inclusion of three new family takaful operators into the market.

Meanwhile, The Malaysian Insurance Institute (MII) CEO Khadijah Abdullah said the insurance industry as a whole was projected to grow by 12% this year supported, amongst others, by the Government’s various stimulus plans and other legislative initiatives as well as the historically low interest rate environment.

According to the Life Insurance Association of Malaysia (LIAM) that in addition to these numerous initiatives announced in the Economic Transformation Programme, including the private pension plan and worker insurance scheme, economic conditions in the country are ripe for further life insurance development.

She added the current consumer confidence in Malaysia has also shown marked improvement, rising to 107 points on the latest Nielsen Global Consumer Confidence Index - its highest score since the third quarter of 2006.

The General Insurance Association of Malaysia (PIAM) meanwhile reported that, in absence of any further adverse impacton the world economy, the association foresees the outlook for the general insurance industry this year to be positive with an increased demand for insurance in all areas.

Likewise, MTA also expects the Islamic insurance industry to continue to improve on its 10% market penetration, particularly by expanding into rural areas.

Khadijah said Malaysia and other Asean insurance markets should consider implementing the proposed Solvency II framework to be launched next year in the European Union (EU) so as to synergise the domestic industries as to be at par with other advanced markets.

This new framework would create a new scenario for the EU insurance legislations to facilitate the development of a single market in insurance services in Europe, whilst at the same time securing an adequate level of consumer protection, she noted.

Retirement in Malaysia

FOR 30 years, Mazlan Ahmad worked as a technician in a factory. When he retired at 55, he had RM155,000 (S$62,852) in EPF savings and about RM20,000 in the bank.

In the first year upon retiring, he spent about RM30,000 of that total. At the rate he was going, Mazlan, 57, knew the money would not last long. So he decided to go back to work for his former company last year.

"Luckily I don't have anything to pay off such as my house or car. Also, my children are all grown up," says Mazlan, who feels that he can only retire if he has RM1mil in savings.

For the lower income group, RM1mil may seem beyond reach but to others, especially those living in the cities where cost of living is much higher, it may just be the minimum amount one would need to have in the kitty before thinking of retiring.

According to the Global Ageing Report by The Nielsen Company released in February this year, about 56% of Malaysians retire, or express their wish to retire, before turning 60.

However, only 21% believe they are financially ready to retire. Another 44% are unsure while 35% are currently not financially set for retirement, according to the report.

For instance, many have yet to settle their housing loans or they live in rented accommodation. With prices of fuel and food spiralling, it is not an easy ride for retirees who also have to worry about medical expenses.

Given that the average life expectancy of a Malaysian is 74 years, retirees have about 20 years of living without income to "worry" about. This is after taking into account that they have settled their mortgages and car loans and do not have to worry about their children's education.

Rajen Devadason, a Securities Commission-licensed financial planner with MAAKL Mutual Bhd, estimates that between 80% and 90% of middle-aged urban Malaysians will need between RM500,000 and RM5mil to retire well in the next three decades.

"Most people will never succeed in building a retirement nest egg of that size because they are not pursuing it as a major life goal with dogged determination," he opines.

Echoing Devadason, Yap Ming Hui, managing director of Whitman Independent Advisors Sdn Bhd, believes that those in urban settings such as Klang Valley would need at least RM1mil to retire.

He says if one spent about RM4,000 a month, a million ringgit could last about 20 years after taking into consideration inflation. "A million ringgit in 20 years won't be that much because of inflation," he adds.

Most Malaysians rely on their EPF savings to pull them through their golden years while pensioners survive on half their last drawn salary. According to the 2010 EPF report, most Malaysians have an average RM146,000 in savings by the time they retire.

More worryingly, a survey by the EPF showed that 70% of retirees use up all their EPF money within three years of retiring. And 99.9% of the contributors reportedly withdraw their EPF savings in a lump sum once they reach 55.

"Many Malaysians think their EPF savings are sufficient but they definitely need more than that. Quite a lot of people have to work again because they can't really afford not to," says Credit Counselling and Debt Management Agency (AKPK) CEO Akwal Sultan.

Author Azizi Ali, who wrote the book Retire Rich, says the propensity to spend after retirement might even be more than when one is working.

"Do you spend more during weekdays or weekends? Most would say weekends. When you are retired, every day is like a weekend," he says, adding that most people don't even have 50% of what they need for retirement.

"This is scary, yet many people don't realise this. To be poor in old age is the ultimate prison. If you are young, at least you can work."

It is for this reason that people have to start financial planning for retirement as early as possible, and Devadason believes those who manage to hit the million ringgit mark when they retire are those who began saving and investing in their 30s or 40s.

"Every person who is willing to sacrifice short-term thrills for long-term value can build up a savings and investment portfolio that eventually exceeds RM1mil," he says.

Yap points out that most Malaysians tend to under-save or under-invest. "It won't matter how much you earn if you can't save money. One should always live within their means," he advises, adding that salaried workers should save at least 30% of their gross income.

The second rule, says Yap, is investing so that money will grow higher than the rate of inflation. "If you put your money in a fixed deposit account, you are going to get about 3%. What if the inflation is 4%?

"But if you put your money into something that grows by 8%, your money will grow 4% (after deducting 4% for inflation)," he elaborates.

There are many investments that grow faster than the rate of inflation; like property, the share market, unit trust funds and commodities such as gold. The golden rule of investing, of course, is not to put all your eggs in one basket, says Yap.

"For example, it would be dangerous to concentrate everything on property or the share market. What if property prices go down or the share market collapses?"

Both Devadason and Yap recommend investing EPF Account One savings in portfolios such as unit trust funds. Furthermore, Yap suggests investing this money in equity or balance funds.

(EPF guarantees at least 2.5% although in 2010, these returns were 5.8%.)

"More often than not, those with long-term investment time horizons exceeding seven years have succeeded in that goal of earning compounded returns above those of EPF," says Devadason.

Financial advisor Cheong Mei Kay, who gives advice on www.mckeycheong.com and deals mainly with clients from the ages of 19 to 35, finds that many in this age bracket don't think about retirement.

"I believe they are aware but they don't take any action. They tend to think it's still too early for them to think about retirement," she says.

Cheong, 24, usually tells her young clients to start allocating a certain portion of their income for retirement.

"Young people usually know how to spend and don't save as early as they can. I would advise them to do so when they start earning."

Cheong says while many people accumulate wealth, it is more important to grow it.

Her advice to youngsters is to start with some low risk investment or savings like fixed deposit or a saving account in an insurance company before attempting medium-higher risk investments.

"It's like building a house. You must build up the base first."

Business Partner

Are you looking to partner with someone to start your own business? Are you a business owner looking for a partner to increase revenue and enhance your business? Great, well I hope you have the flowers and invitations ready because you’re about to get married! Congrats. Exaggerating? Not really. We’re talking about a contractual agreement between two people for better or for worse who are dependent on each other for the success of an institution.

Money issues cause a lot of friction in marriages. In business, money IS the issue. Like marriage, your partner might be the biggest blessing in your rise or the biggest cause to your fall. Needless to say, to have success and happiness, it is imperative that we take time to qualify who our partners will be. Here are some tips.

The Past Matters:People can change, yes. Are the odds in your favor, no. Barring the obvious criminal background check it is imperative to look at your potential partner’s past business dealings. Has he or she had disputes with previous partners? Do past clients say good or bad things about their business practices? Did YOU personally have a previous encounter with the potential partner that didn’t sit well with you? These are all valid pieces of evidence to consider before you say “I do.” In other words, if the potential partner cheated on a previous partner, don’t be surprised if they do it to you.

Accountability:
Being accountable to someone, in essence, is a physical display of respect. Being punctual, pulling your weight, and keeping your word are important characteristics you should display and expect your potential partner to display as well. Doing these things correctly and consistently says two things...this business matters and YOU matter. When another person has enough power to bring success or failure to your business feeling like you can count on them will help you sleep at night. Even the small things count because remember, those who can’t be trusted with little, can’t be trusted with much. Respect in a relationship is everything.

Love:
Ok, maybe love is a little strong for business, but heck, you should at least like them. You will be spending a lot of time with this person, possibly more than your own family. Make sure your partner is someone with a positive aura who you genuinely enjoy working and learning from. This doesn’t mean there won’t be disagreements and tough times. However, when those arise, make sure you remember the reasons you were attracted to this person in the first place whether it was their talent, their drive, or their connections. Whatever the reasons, focus your partners energies on those things so that your business will reap the most rewards from their skills. Make sure you and your partner share the core qualities of integrity and trust but also make sure they add value that you can’t. Like a pastor I heard say once, “alike enough to get along, different enough to be necessary.”

No Credibility

Would you buy a used car from Paris Hilton? As our Magic 8 ball used to say, "Outlook not so good." According to a recently released poll by Ipsos, a whopping 60% of Americans don't trust her.

Hilton was found to be the absolute least trustworthy celeb, beating out other morally questionable folks like Charlie Sheen (52% unfavorable), Britney Spears (45% unfavorable), and Kanye West (45% unfavorable). Others on the bottom of the list of unpopular personalities: Arnold Schwarzenegger (44%), Tiger Woods (42%), Kim Kardashian (38%), Mel Gibson (33%), Donald Trump (31%), and LeBron James (29%).

Nicol World Best

Malaysian squash superstar Nicol David claimed the Australian Open women's title at her first attempt when she downed England?s Jenny Duncalf in straight games in Canberra on Sunday.

David was at the brilliant best as she shut out Duncalf 11-8, 11-4, 11-6. The world number one took control from the first game, jumping out to a 6-1 lead, and although Duncalf fought back to level terms the Englishwoman was always playing catch up and David never looked like relinquishing her grip.

"I knew that today was going to be a tough final, she knows my game really well and we play each other a lot," David said. "I really had to stay consistent in there, I was moving well, I focused well and I just stayed on my game."

Tips On Buying Life Insurance

Whether you've bought a house, started a family, or simply want to ensure your loved ones will be provided, life insurance is often a must. Nathalie Bonney shares her top tips for buying life insurance. Nobody likes to think about what would happen to their loved ones when they die, but if you want to ensure your dependants are looked after, taking out life insurance is often a must.

Look after yourself
Ensuring you lead a healthy lifestyle will help reduce your premiums, as you’ll be viewed as less ‘risky’ by insurance companies – heart disease and high blood pressure, for example, are commonly linked to obesity.

According to Kevin Carr, director of protection development at PruProtect, the more unhealthy you are, the higher your premiums. If you give up smoking for at least 12 months, this could also dramatically reduce the cost of your life insurance.

Start paying earlier
The earlier you take out insurance, the cheaper your premiums – as long as you take out a guaranteed policy, which means your premium will remain the same throughout the term. When you’re younger you’re usually healthier and fitter, and so are a lower-risk client.

Remember to take inflation into account, as the real value of your payout will be reduced over time. Protection specialist LifeSearch suggests considering taking out an index-linked policy, so that its value keeps track with inflation.

Take out separate policies
Although taking out two separate policies will cost slightly more than a joint policy, Carr thinks the former is “better value for money” because you get two payouts instead of one.

A joint policy only pays out after the first person dies – therefore two payouts would be more beneficial to couples with dependants.

Use a trust
If you are concerned that your estate might be subject to inheritance tax when you die, then consider putting your life insurance into a trust. This will ensure the payout goes to the person, or people, you intend it to, rather than the taxman.

Be honest
Pretending you don’t smoke or only drink a couple of glasses of wine a week in order to cut your premium is pointless – your insurer might not pay out if it discovers you have been dishonest.

Also, always give as much detail as possible, and get regular checkups with your GP to ensure that the details in your policy are up-to-date.

Why You Need A Life

Life іs ѕo uncertain thаt nobоdу knоwѕ what іs going to happen thе nеxt moment.

In such а situation, having a life insurance сan prove to bе а boon іn case оf аn unexpected calamity. Before уou choose а partiсulаr policy, іt iѕ neсeѕѕarу tо find a reliable website thаt prоvidеѕ life insurance quotes frоm a number оf providers.

Such a site is vеry useful becаuѕе yоu dо not nеed tо visit thе websites of the vаriouѕ insurance policy providers and you can get dіfferent quotes on the ѕamе portal. It bеcоmes easy tо compare theіr rates and оther terms in order to choose the mоst suitable one.

Why іs Life Insurance Necessary?
It іs a hard fact оf life thаt thеrе іs no guarantee that a person whо іs hale аnd hearty wіll be alive thе next moment. His wife аnd kids wоuld bе left high and dry wіthоut аnу means оf support partіculаrlу іf hе іs thе оnly breadwinner of thе family. It will protect hiѕ family bеcausе theу wіll get thе amount оf thе insurance cover that wіll sее them through for manу years.

It іs absolutely essential for a person hаvіng children to take a life insurance policy beсаusе іn the event of hiѕ untimely death, thе amount of the settlement сan set them uр fоr thе rest оf theіr lives.

If the person had a home mortgage, his cover will protect hiѕ family bесаuѕe theу wіll nоt have tо make future payments for the mortgage. This іѕ indeеd а very big advantage fоr a family bесаuѕe thеу nееd nоt worry abоut finding аn alternative shelter. This iѕ onе of thе most important reasons why yоu must takе а life insurance cover after obtaining thesе quotes frоm a reliable website.

Factors Affecting Life Insurance Premium Costs
The cost оf gеtting a life insurance cover depends оn а number оf factors that аre known as underwriting factors. The mоst important factor іs the perceived risk of thе person taking thе insurance policy. It is obvious thаt if thе person haѕ greater risk factors, hiѕ premium will аlsо bе high. These factors include health, age, past driving records, occupation, and dangerous hobbies whісh соuld endanger hіs life. The insurance premium is calculated оn thе basis оf thеsе risk factors, thе amount оf coverage оf thе policy, аnd іtѕ duration.

The health оf the person and hiѕ age arе thе biggest criteria for determining the insurance premium. The оther determining factors include аnу history оf alcohol addiction and/or substance abuse lіkе cigarette smoking, and history of аny hereditary disease in thе family lіkе obesity, diabetes, heart problems, аnd so on.

Choosing the Right Insurance Company
If уоu wіsh to tаkе a life insurance cover, yоu shоuld visit а website that рrovіdеs comparisons of life insurance quotes from а number оf insurance companies. If уоu аre a high-risk case, you wіll find suitable insurance companies thаt specialize іn ѕuсh cases and offer affordable rates. It is essential that уоu enter all information aѕ required by the site. Then уоu will get а number оf thеse quotes frоm dіffеrent insurance companies tо enable yоu to compare and choose thе one thаt suits уou the best.

Life Insurance Malaysia

Insurance companies can expect healthy demand from the 20 to 40-year-old crowd in Malaysia as 60% of this group are planning to buy life or health insurance products in the next 12 months, according to a survey by Swiss Re Ltd.

In the study covering 13,800 people in 11 major Asia-Pacific cities, Swiss Re found that 20 to 40-year-old Malaysians are more worried about medical bills, with 60% concerned about getting a serious illness and 57% the inability to pay for long-term medical expenses.

They also tend to underestimate their life expectancy by 15 years when comparing their self-perceived average life expectancy to the official average life expectancy of 75 years old.

The perception gap was the largest in the Asia-Pacific, suggesting a significant longevity risk.

“This large perception gap should ring an alarm bell, as underestimating life expectancy can be a risk in the sense that people may not plan sufficiently to meet their financial needs after retirement,” said Swiss Re Malaysia head and director of reinsurance client markets, Eric Gan.

The study showed that 61% of respondents in Malaysia are concerned about the amount they have to pay for medical expenses relating to major illness, while 62% are concerned that their medical or health insurance premium will increase beyond their affordability in the future.

Gan added that “both the public and private sectors must act together to ensure that living longer remains a benefit to society, rather than a financial burden.

“In particular, the insurance industry can play a key role in raising public awareness of longevity risks and the importance of personal financial planning at an early age, as well as in offering suitable products and services for tackling the challenge”.

Most Malaysians also prefer to buy insurance through insurance agents (81%) and banks (31%) as financial soundness, reputation and value for money are ranked most important when considering an insurance company.

In addition to that, the study noted that only a small portion of Muslim respondents in Malaysia and Indonesia have bought Islamic insurance products.

The study said that “an overwhelming majority of the respondents either do not know or have limited knowledge of (Islamic insurance) products”, indicating consumer education is clearly needed.

The survey also found that the Malaysian group is generally more risk averse compared to their Asia-Pacific counterparts, including Singapore.

Gan said: “Compared to their Asia-Pacific peers, Malaysia's 20 to 40 year olds are less willing to take risks on their health and career, and more willing to take risks on their lifestyle.”

The survey titled Swiss Re Survey of Risk Appetite and Insurance: Asia-Pacific 2011.

It was conducted in April and May in Australia, Singapore, South Korea, Taiwan, China, India, Indonesia, Vietnam and Malaysia.