50,000 Patients - Dialysis Treatment - 2020

There are more than 39,000 patients nationwide who require dialysis treatment and the number is expected to grow to 50,000 by next year, says Dr Lee Boon Chye. The deputy health minister said in 2016, the government spent RM1.6bil on dialysis costs at its facilities.

He said the cost was not only a burden to the government, but also to the patients. Dr Lee said with the increase in patients, the cost would also definitely escalate as well.

“From the figures, 33% of patients received treatment at government facilities, 47% at private hospitals, and another 20% at non-governmental organisations. For non-profit organisations, the government provides a RM200,000 grant to build a haemodialysis centre.

“As for poor patients seeking treatment at such centres, they are eligible to receive RM100 aid for each dialysis treatment,” he told reporters after launching the state-level World Kidney Day celebrations here Saturday (March 30).

Dr Lee, however, said more people are coming forward to get medical examinations done, and this could be one factor in the increase in the number of patients.

“It is very important to get early medical checks done regularly to prevent and treat diseases such as diabetes and high-blood pressure, and to reduce the risk of renal failure. We need to always be healthy, eat right, and exercise often to prevent serious illness from occurring,” he added.

Nominee & Trustee

Making a nomination helps ensure that your loved ones are protected financially should anything happen to you. You will want them to be able to access these funds as soon as possible. 

By appointing a nominee(s), the policy moneys can be disbursed much faster without the need to obtain the Grant of Probate or Letter of Administration or Distribution Order.

Without a nomination, your insurance company is not obligated to release the policy money until these documents are obtained, which may take up to a few years. 

A nomination is a right given to a policy owner, aged 16 or above, to appoint person(s) to receive policy moneys when an insurance policy claim is triggered.

A nomination is done by submitting a Nominee form through your insurance company. You will need to state the share per Nominee, nationality, NRIC/birth cert/passport number and address.

For example: Beloved spouse 50%, Ah boy 25%, Ah girl 25%

While there is no minimum age for non-Muslims, if your nominee is a minor, the funds would be held by your trustee.

For Muslims…

Claims by nominees below 18 are invalid as per Nomination Policy, effective Jan 1, 2017.

A Muslim policy owner may still make a nomination to ensure that the policy moneys can be distributed faster.

The Nominee of a Muslim policy owner receives the policy moneys only as an executor and distribution must be in accordance with Islamic laws.

In the event there is no nomination, the policy moneys will go to the Public Trustee and therefore may take some time to distribute.

As a Muslim, you can opt to give the insurance policy as a gift (hibah) while you are still living to ensure that he/she receives it’s benefits.

For a EPF nominee however, it is considered a gift and is given directly to the nominee. This can be done with an insurance policy assignment. 

What is a Trust vs Non-Trust Policy?

A trust policy distribution is not part of the estate and is free from creditors. A trust policy nominee can be your spouse, children, or parents provided there is no surviving spouse/children at the time of nomination.

A non-trust policy distribution is part of the estate and therefore subject to creditor’s claims.

Nominees act only as executors to distribute the proceeds according to the law. Do note that parents are non-trust nominees if there is a surviving spouse/children at the time of nomination.

Muslims are automatically non-trust nominees.

If your nominee dies and you are still alive, the eligible portion will go to your next-of-kin. If you have passed away, the eligible portion will go to your nominee’s next-of-kin.

EPF nomination

This refers to the process of naming a nominee among individuals or an approved institution.

Eligibility

• Member aged 18 and above
• Malaysian citizen
• OR non-Malaysian citizen, who has Permanent Resident status or became an EPF member before Aug 1, 1998.

EPF nominee recommendation

Muslim members are advised to nominate their next-of-kin, such as their spouse, children or parents.

Non-Muslim members can nominate any individual (recommended: next-of-kin i.e. spouse, children and parents).

An approved institution is like Amanah Raya Berhad (ARB). ARB will appoint a trustee for nominees below 18 years old. If a member chooses to nominate ARB as a nominee, ARB will become the administrator to ALL (100%) of the member’s savings.

What happens if BOTH you and your nominees die together?

If EPF savings are less than RM25,000:

• Initial sum of RM2,500 is paid to the next-of-kin
• Balance is paid after two months from death

If EPF savings are over RM25,000:

• Initial sum of RM2,500 is paid to next-of-kin
• Second payment of up to RM17,500 is paid after two months from death
• Balance is paid upon submission for Letter of Administration/Letter of Probate/Distribution Order/Faraid Certificate (costs may apply)

What is the deadline for submitting claims application?

For EPF, within one year of death, or it will proceed as if no nomination was made.

Trustee

A Trustee is an individual or member of a board given control or powers of administration of property in trust with a legal obligation to administer it solely for the purposes specified.

In discharging his/her duties, a Trustee must exercise the utmost diligence and be personally liable if there is any breach of trust.

Examples of a Trustee’s duties include:-

• Duty not to profit from trust
• Duty to be impartial
• Duty to account
• Duty against a conflict of interest or self dealing

A Trustee must be above 21 years of age and of sound mind.

A Trustee can be a non-Malaysian. However, you should ensure your Trustee stays long-term in Malaysia, else would need to travel here and may cause delays in estate proceedings.

Your Nominee can also be your Trustee but best to check with your insurance provider, bank or relevant party for more details.

You may opt not to appoint a Trustee. If unsure, consult your insurance company or life insurance agent.

However, if a trust nominee is changed or revoked, and there is no trustee, consent is required from the presumed trustee. A presumed trustee may be a spouse, child aged 18 and above or parent (if policy owner is single at the time of nominating a parent).

As of June 30, 2013 with Financial Services Act 2013, you may no longer appoint yourself as a Trustee in an insurance policy.

Your Trustee must be someone you trust. It makes sense in a way that you cannot appoint yourself as you would usually want a Trustee when you are not around/capable to act as one.

However, it may cause complications if you want to change your Nominee at a future date. Your Trustee would need to confirm the change of Nominee, sign forms and submit a copy of his/her IC.

Unless it is from a sibling to your parents/spouse/children then Trustee approval is not required. You can also check with your insurance provider if you can opt not to have a Trustee.

This article first appeared in https://mypf.my

MyPF is on a mission to help simplify and grow Malaysians’ personal finances through financial education.

Gay Sex - Stoned To Death In Brunei

Adultery and gay sex in Brunei will be subject to death by stoning from next week, authorities said, under a strict Syariah law that has been on hold for four years amid heavy criticism.

Rights groups reacted in horror on Wednesday (March 27) to the latest hardline move from the resource-rich nation on Borneo, which practises a stricter brand of Islam than its neighbours Malaysia and Indonesia.

The tiny sultanate will implement the harsh new penal code - which also prescribes amputation of a hand and foot for theft - next Wednesday. Homosexuality is already illegal in Brunei but it will now become a capital offence. The law applies to only Muslims. The new penalty for theft is amputation of the right hand for a first offence, and the left foot for a second offence.

A notice on Brunei's Attorney General's Chambers dated Dec 29 last year said the provisions will take effect on April 3. Brunei first announced the measures in 2013 but implementation has been delayed as officials worked out the practical details and in the teeth of opposition by rights groups.

Under a shift towards hardline Islamic law, Brunei in 2015 banned excessive Christmas celebrations for fear that Muslims could be led astray.

RM300 Million Unclaimed Money

The insurance and takaful industry has more than RM300 million worth of unclaimed benefits as a result of outdated records of policy and certificate holders, says Bank Negara Malaysia (BNM). 

To improve the efficiency in the claiming process and to reduce the incidence of unclaimed death benefits among Malaysians, the central bank said it was finalising arrangements with the National Registration Department (JPN).

The arrangements would facilitate periodic checks by insurers and takaful operators against the death registry.

“This will enable insurers and takaful operators to pro-actively contact and pay the benefits to the rightful beneficiaries, and the arrangement is expected to be operational in 2019,” BNM said in its Financial Stability and Payment Systems Report 2018. 

According to the report, total premiums and contributions from Malaysian insurance and takaful sector rose 4.9 per cent to RM66.6 billion in 2018, an increase from RM63.5 billion in 2017.

Meanwhile, the penetration rate of life insurance and family takaful, measured as the percentage of Malaysians who own at least one individual or group life insurance policy or family takaful certificate, stood at 41 per cent in 2018.

“Insurance/takaful coverage also remains uneven with the vast majority of Malaysians, mainly in the lower income segments, without insurance/takaful protection,” it said.

On the Perlindungan Tenang initiative launched in November 2017, the BNM said over 29,500 policies and certificates have been sold, comprising 28,900 life policies and family takaful certificates and over 600 fire or flood policies and certificates.

BNM also said a study on the key drivers of medical claims inflation and potential cost containment measures would be published by the third quarter of 2019 to provide evidence-based analysis to inform future initiatives.

Last year, a medical cost containment task force was established by the industry as part of the efforts to control medical claims inflation, which has pushed the cost of medical and health insurance/takaful higher in recent years. 

On the direct distribution channels of life and takaful products introduced in June 2017, BNM said products offered through it such as the Internet, would be expanded to include pure protection critical illnesses and medical and health insurance/takaful products beginning from March 2019.

Meanwhile, it also said the limits on commissions and agency-related expenses for investment-linked products would be liberalised.

This is in tandem with the implementation of the Minimum Allocation Rate (MAR) for investment-linked insurance and family takaful products starting in July 2019 and July 2020, respectively. 

On the general insurance segment, the report said following the liberalisation of motor and fire insurance tariffs on July 1, 2016, for the first phase followed by the second phase on July 1, 2017, about 34 per cent of policies and certificates experienced lower rates than the tariff.

It also said 10 per cent of policies and certificates saw rates unchanged, and 56 per cent of policies and certificates saw rates increase compared to the tariff in 2018.

“In the higher-risk vehicle segments, particularly theft-prone vehicles, premium and contribution rates increased by up to 30 per cent, while in other vehicle segments with better claims experience, rate decreases by up to 60 per cent from the tariff rates were observed,” it said. 

Moving forward, the central bank expected the adoption of technologies, such as the use of telematics or usage-based products would gain more traction in the insurance industry which would facilitate further refinements to pricing based on individual risk profiles.

BNM also said it was currently developing proposals for the next phase of liberalisation of motor and fire insurance tariffs, which would consider appropriate and gradual adjustments of premiums and contributions for compulsory ‘Third Party’ motor and fire products, including their timing.

Beneficiary - Life Insurance

One of the world’s most influential fashion moguls passed away and may have dedicated part of a $300 million fortune to his pet cat . This had a lot of people undoubtedly thinking, “Who would I leave everything to if I died unexpectedly?”

While there are many ways to ensure the loved ones you leave behind are taken care of, financial security is a top priority in estate planning. One of the core avenues of providing this coverage is through a life insurance policy. Not only can this coverage be used to cover major expenses such as funeral costs or outstanding debt, but it can also provide longer-term support like supplementing income lost with the passing of a breadwinner. Regardless of life stage or family structure, if you have people who depend on you, purchasing a life insurance policy guarantees them financial support should something happen to you.

Then there’s the task of determining who in your circle needs this coverage, how much of it and for how long. Do you have a spouse or partner who depends on you? Do you have children that need to be taken care of? Will your parents be covered? Choosing a beneficiary isn’t always a clear-cut decision, and there are several core factors that should guide your elections.

Age Does Matter - It makes sense that a parent would prefer to name a non-adult child as a beneficiary because of their lack of income; however, it is important to think about the process that comes with that decision.

Naming a minor as a beneficiary will provide much-needed coverage, but keep in mind they will not have access to the funds until they are 18 or 21 years old. If they need to retrieve the assets in the policy prior to reaching adult age, the funds will have to be left in the hands of a guardian. You also have the option of leaving the policy to the acting legal guardian of your non-adult children from the outset.

As time goes on, your family may depend on your financial income less and less, which is where noting the difference in whole and term life policies plays an important role. If financial coverage is needed most when your children are of a certain age, electing a term life policy allows you to control that. A term policy will only be paid out to your beneficiary if you pass in a fixed span of years (e.g., 10, 20, 30-year policy). Whereas, whole life insurance lasts, well, your whole life. Your children will likely be grown, but through them, those funds can also support the next generation of your family through your grandchildren.

You Can Designate Multiple Beneficiaries - You may have a number of people who are dependent on your income or who would struggle in the case of your absence. If you’re having a hard time choosing between a spouse, parent or child, keep in mind you can select multiple beneficiaries. These elections can also vary in coverage, allowing you to choose the appropriate portion of your policy designated for each beneficiary you name.

If you are inclined to leave your policy to just one person, be sure to have a backup. This means that when you’re assigning your beneficiary you are able to designate both a primary and a contingent beneficiary. A primary beneficiary is an initial person you leave your life insurance policy to, whereas a contingent is the second in line to inherit the policy in the case of your primary beneficiary’s passing. Whether it be a permanent life policy or a term life policy, your life insurance policy will go to your primary beneficiary or beneficiaries if they outlive you.

Your choice in beneficiary is unique to you and should align with the unique needs of your family.  

Your Beneficiary Designations Can Change - So, you’ve made your decision on who those beneficiaries should be, but a few years down the road life happens and priorities change. Life insurance inherently understands this unpredictability, which is why beneficiary elections are not set in stone. Policyholders are able to update beneficiaries in the case of major life changes. However, if you are making changes and also have your life insurance policy included in your will, those beneficiary elections need to match.

Traditionally, the entire process, including making a change like this, has required mounds of paperwork, long wait periods and difficult procedures. The good news is, the insurance industry is starting to see a rise in technology innovations that are eliminating these mundanities for consumers. Digital life insurance companies are streamlining how people purchase life insurance, making even the smallest adjustments like changing your beneficiary possible with the simple click of a button.

Choosing a beneficiary is an essential part of the life insurance process. It’s important to remember that beneficiaries should be those who would be most impacted in the event of your passing. Your life insurance policy is about the people you leave behind, so choose wisely.

Parents Continue To Invest In Education

Despite the potential lower starting salaries for their children, parents believe it is still worth investing in tertiary education.

Senior manager Joseph Pereira said: “Personally I feel that as parents we should not compromise on our children’s education.

“It is up to our children to demand what (salary) they think they need to survive on in their journey when they graduate. Sustainable performance and adaptability is important for personal growth to overcome the inflation year to year whether you are a graduate or non-graduate.”

He was commenting on Bank Negara’s latest annual report which revealed that after adjusting for inflation, the real starting monthly salaries for most fresh graduates have declined since 2010.

A salary survey by the Malaysian Employers Federation also suggests that nominal starting salaries for graduates remain at modest levels. A fresh graduate with a diploma earned a real salary of only RM1,376 in 2018 compared to RM1,458 in 2010. It was suggested in the Bank Negara report that the lack of high-skilled job creation could have played an integral role in the decline.

Interior designer Alan Tan also said he would invest in his children’s tertiary education as he still thinks it will be worth it.

“A lot of question marks appear in my mind when I wonder if it is still worth spending so much on sending my children for expensive university studies,” he said.

“But I still think it is worth the money although it is subjective to what my child wants to do as a career. We, as parents, might be overreacting to this news if we decide to not put so much money into our child’s future,” he said.

Tan said the unstable politics in the country and the worsening economy are to blame for the decline in real starting salaries for fresh graduates.

“This is bad for the country and we are in a vicious cycle,” he said.

Manager Harinder Kaur said it is still worth pursuing a tertiary education, especially for specialised jobs, even if there has been a decline in real starting monthly salaries for most fresh graduates since 2010.

“But it is worrying to note that the investment I’ve made for my child’s studies might not be worth it, especially in terms of starting salary,” she said, adding that her son is currently in his second year at a private university.

However, she continued: “Depending on my child’s interest, I may suggest my child find a job in a field with a high starting salary if possible, rather than studying for a degree and working in that sector with a measly starting salary.”