Investing In Life Insurance

You have finally decided to buy life insurance, as you are now convinced about its importance in the long run. Good! However, do you know it is quite possible that you won't be able to enjoy its benefits? Confused, right? Let me explain why -- if you buy the wrong insurance plan, it might not be able to help you when you need it the most, laying to waste the plan and all the premium money you've paid over the years. The trick is to buy the right plan.

Enumerated below are the common mistakes that people make while buying life insurance. Being mindful of these will help you make an informed buying decision and save your family a lot of grief.

Penny wise, pound foolish

This is the most common and biggest blunder people make while buying life insurance. As the benefits of life insurance are not immediate, like that of a car or health insurance, people tend to de-prioritize it. The buying decision is based on one and only one criterion -- the premium: the lower it is the better!

But here's what: lower premium translates into less sum assured, which might be extremely insufficient 10 or 20 years down the line when your family might actually need the money. After all, a sum that looks generous today may be a pittance after accounting for soaring inflation over the years. Again, buyers have a tendency to compromise on the terms of the plan to reduce the cost. So, change your mindset. Instead of price, benefits and utility should be the main criteria for buying a life insurance plan even if it means paying a little more.

A stitch in time saves nine

Don't wait to buy life insurance until you see grey hair in the mirror. You get cheaper and better deals on life insurance when you are young. Hence, you can get a higher sum assured for a long policy term at low cost. However, if you decide to buy life insurance at a later stage (which you can), not only do you have to undergo quite a few checkups, there is a chance of the premium increasing on diagnosis of any chronic ailments. So, why take a chance? People usually leave life insurance as the last insurance to buy after car, health, child etc. Is life so cheap?

A little learning is a dangerous thing

So, a friend told you over lunch about his life insurance purchase and you quickly took his agent's number to jump on the bandwagon. This is pretty common and, trust me, the biggest mistake one can make. Don't get influenced as every person's requirement is different. What works for them may be useless for you. Again, there are many companies and many offers to choose from. If you are blindly following an agent because your friend's uncle bought from him, you're being foolish.

Did you know that life insurance policies sold online are way cheaper, with a bigger sum assured? The reason is not any cheap trick but because companies save on administrative costs of selling and marketing. Logical, isn't it? Yes, go for logic. Do your own research, compare plans, and then choose one that suits your best interest so as to ensure the financial security of your family in your absence

A Drop in the ocean

Nothing can be worse than not assessing your future financial needs properly. Just to save some money now, don't under-assess your family's liabilities and financial responsibilities in the future. A growing family and years ahead always translate into a spike in expenditure. Both costs and inflation are ever rising. A simple formula to assess your future needs is to buy 10-15 times of what you are earning today. There are many online calculators to help you get the right amount you might need in future based on your age, family needs, spending habits, etc. Alternatively, you can consult a financial expert to help you reach the right decision.

The moment of truth

Don't hide anything -- consciously or unconsciously -- from the insurance company. If you lie today regarding your health, smoking or drinking habits, it might lead to rejection of the claim in the future on grounds of false statement.

Another mistake that people often make is to let the insurance agent fill the insurance papers on their behalf and they just sign on the dotted lines. In such a scenario there are higher chances of missing out on some vital information or giving incorrect data. It is strongly recommended that you take time to read the details and fill the form yourself. This is why I suggest that you buy life insurance online, wherein it is only you who fills the form and you make complete disclosures with respect to the questions asked. That way there is no chance of claim rejection on account of non-disclosure.

Avoid these common mistakes and make an informed buying decision because after all it is your life and family at stake here.

The Big " C "

Taipei, June 9 (CNA) Breast cancer was the disease for which the highest number of insurance claims were made to Fubon Life Insurance Co. (富邦人壽) in 2015 in terms of the number of cases, the life insurer said Thursday.

Citing its data, Fubon Life, the flagship insurance entity of Fubon Financial Holding Co. (富邦金), said that the number of breast cancer insurance claims has been on the rise in recent years, with the figure rising about 10 percent year-on-year in 2015.

Lung cancer came in second, with the number of claims for 2015 up 14 percent from a year earlier, Fubon Life said, adding that the number of cases filed by female lung cancer victims was up 16 percent from a year earlier.

Since Fubon Life is among the top two life insurers in Taiwan in terms of first-year premium income, the company's data could serve as a good reflection of the entire insurance claims in the country, analysts said.

The statistics echoed data released by the Ministry of Health and Welfare, which said cancer remained the top cause of death in Taiwan in 2014, with 46,094, or 28.3 percent, succumbing to malignant tumors.

The ministry said that lung cancer topped the cause of death among all cancers, followed by liver and colorectal cancer. Rounding out the top 10 cancer deaths were breast cancer, oral cancer, prostate cancer, gastric cancer, pancreatic cancer, esophageal cancer and cervical cancer.

Fubon Life said that people in Taiwan should take precautionary action by undergoing regular screenings in a bid to attack malignant tumors as soon as possible and raise the chances of survival.

The life insurer suggested that people here also should buy sufficient cancer insurance policies, which provide financial protection to cancer victims to offset the impact of massive medical expenses, including surgery and after-care.

In addition to cancer, the life insurer said, with society aging, the number of insurance claims for cataracts, to which the elderly are susceptible, has been on the rise, up 11 percent from a year earlier. 

Great Esatern Bolted From Vietnam

Great Eastern Holdings Ltd has sold its Vietnam business to FWD Life Insurance Company (Bermuda) Ltd, a unit of Hong Kong's Pacific Century Group, for S$48.2 million in cash.

The net book value of Great Eastern Life (Vietnam) Co Ltd (GELV) as at May 31 was S$47.5 million, the company said in a filing to the Singapore Exchange on Tuesday (June 7).

The sale, which will be completed on or about June 21, will result in a loss upon disposal due to the realization of accumulated foreign exchange translation losses, said Great Eastern. But the divestment it is not expected to have a material effect on the net tangible assets or earnings per share of the group for the current financial year, said the company.

Commenting on the rationale for the disposal, group CEO Khor Hock Seng said: "Our decision was made after a comprehensive strategic review. We will be increasing our focus to grow our core markets of Singapore and Malaysia where we are among the market leaders, as well as our business in Indonesia and Brunei."

He added: "The divestment is not expected to have a material impact on the Group's financials. As part of the transaction, FWD will honor all in-force policies. We will work with them to ensure a smooth transition for our customers and our employees."

Indexed Universal Life Insurance

As smartphones have become more prevalent these days, people tend to love the fact that you can do so many different things with them. What used to be just a cellular phone now serves as a phone, email device, GPS system, calendar, camera, rolodex — you get the point. In other words, they are pretty much an all-in-one device now.

In many ways, today's indexed universal life insurance (IUL) policies can also be viewed as all-in-one financial device, too. Whereas term insurance can protect you with a death benefit, indexed universal life insurance can do that and a whole lot more.

Here are just some of the key features of IUL.

Death Benefit Protection

First, the death benefit protection is a given — and, while going with just a straight term life insurance policy may cost less in terms of premium, an indexed universal life insurance policy will last you for the remainder of your lifetime. It will also build up cash value.

Opportunity for Growth

Within the cash value component of an IUL policy, you have the opportunity to grow your funds based on a market-linked index. This can provide you with the ability to earn a higher return than that of other types of permanent policies such as whole life, or even regular universal life insurance.

Protection of Principal

While there is the opportunity for additional growth of funds, there is also protection of your principal in the event of a market downturn with IUL. This is because should the underlying index lose value in any given period, your account is simply credited with a 0%. This not only protects your funds from loss, but also alleviates the need to make up lost ground from negative years.

Cash for Long-Term Care Needs

Many of the IUL policies that are on the market today will also advance you a portion of the death benefit in order to pay for a long-term care need. In some cases, the amount could even be up to 100% of the death benefit proceeds.

Access to Funds 

The cash that is in the cash value component can either be withdrawn or borrowed for any reason. This money can be used for paying off high interest credit card debt, personal loans, or even your home mortgage.

Supplemental Retirement Income, Tax FreeGiven Given its unique loan provisions, you can also use an indexed universal life insurance policy's cash value to help in supplementing your retirement income in EPF.

Protection from Creditors

In many areas of the country, IUL cash values are also exempt from lawsuits and the claims of creditors. This includes bankruptcy.

Taking the Next Step

While indexed universal life can present numerous advantages over other forms of life insurance coverage — especially from a cash value perspective — not all IUL policies are created equally.

With that in mind, it’s important to take a close look at what is available to you in order to determine what will fit best with your specific goals, needs, and time horizon. That way you can be better assured that the particular plan that you decide on will be the one that’s right for you and those you care about. In doing so, it’s best not to shop through insurers that can only offer you just one option, but rather an agency that can provide you with many available choices that you can compare and so that you can determine in an unbiased manner which plan will work the best for you.

When you’re ready to move forward, an independent insurance advisor can help you put together the right plan for generating tax-free retirement income in the future and one that will protect your loved ones while you wait. 

CIMB & Sompo Japan Nippnkoa Insurance

CIMB Group Holding, Malaysia's second largest bank by assets, announced on Friday a new partnership to distribute Japanese general insurance products in Southeast Asia.

CIMB will sell non-life insurance products from Sompo Japan Nipponkoa Insurance, the country's third largest general insurer, through regional branches, call centers, and its e-banking network.

"This partnership will reap benefits not only from CIMB's core strength in distribution of bancassurance products, but also from Sompo's capabilities in digital technology," said Zafrul Aziz, CIMB's group chief executive.

The deal comes with CIMB facing slower growth in its home market as Malaysia grapples with weaker demand for commodities. CIMB group has undergone restructuring to reduce costs and strengthen core businesses, particularly consumer banking.

Sompo is confident the tie-up with CIMB will expand its customer base. Kengo Sakurada, Sompo's group chief executive, said it "resonates well with our ambitions in the region".

CIMB has a strong presence in Indonesia and Thailand, and operates in 16 other countries.

AIA Vitality Program

AIA Bhd today launched AIA Vitality, which aims to attract 30,000 members by the end of this year. 

By incentivising our members to take better care of their health, this will translate into long term healthcare savings. This is especially relevant in view of rising healthcare costs here,” said AIA Bhd chief executive officer Anusha Thavarajah.

“Our company's three million individual policyholders and 1.5 million corporate members present an organic pool of customers for us to tap into,” she said.

 AIA Vitality is a new addition to AIA’s life insurance and takaful solutions. It is a collaboration between AIA and Discovery, an insurer headquartered in South Africa. This programme is the first-in-market science-backed wellness proposition provides participants with the knowledge, tools and motivation to help them take small steps to achieve their personal health goals. AIA Vitality works with three simple steps – 1. Know your health, 2. Improve your health and 3. Enjoy your rewards.

The AIA Vitality programme enables members to log their daily food intake, track their workouts, calculate calorie budgets, submit health check results and monitor their weight. It essentially helps people make changes in their lifestyle to improve on their overall health. “AIA Malaysia is introducing health-centric, family-friendly initiatives.

We are stepping up our efforts to empower the community with the confidence and optimism to live healthier, happier, better lives with their families,” Anusha said.

“For members who sign up for AIA Vitality with A-Life Link and its takaful equivalent, A-Life Link-i, they can potentially receive free additional coverage of up to 45 per cent on death and disability,” she added.

Partners of AIA Vitality programme include AirAsia, Berjaya Hotels and Resorts, BP Healthcare, Emirates, Fitbit, Fitness First, Garmin, Guardian pharmacy, Marriott Hotels and Resorts, Medklinn, Mongoose Publishing, Men’s Health & Women’s Health magazines and Reebok.

The Greatest Muhammad Ali Dies

The Greatest’ Muhammad Ali - The heavyweight boxing champion died yesterday, succumbing to the disease he was first diagnosed with in 1984. He was 74. Ali was hospitalized with pneumonia in late 2014.

Ali amassed a record of 56 wins - 19 by knockout - and five losses in a career spanning more than 20 years. He was also an outspoken social activist who battled racism and the Vietnam war with the same determination he showed in the boxing ring.