Thrown Under The Bus

Have you ever wonder what dishonesty looks like? Do you find yourself replaying 2020 USA Presidential election rallies/press conferences, so you can study Trump's facial expressions? I found myself doing this  after being surprised by the extent of someone’s dishonesty--someone that I had dealt with for years. In hindsight, though, there were plenty of little clues along the way. Over time, they should have added up. But I ignored them.

It’s not just that people lie (although they do). Some people are so wrapped up in a delusion, and tell themselves a story so many times, that it becomes reality in their mind. Someone who is also a smooth talker can be a master of generating excitement and momentum. If that person has a title or position with some prestige, or perhaps has been a media magnet, the pull to jump into their opportunity can be even more compelling. “It’s got to be a winner,” you might say.

No, it doesn’t. And all that excitement can cause you to discount the little red flags that pop up along the way. Don’t make my mistake – pay attention to those red flags. Dishonest people are banking on the fact that you won’t want to dig into their story, for fear of ruining the opportunity or being left out in the cold. You need to dig.

Here are four red flags you cannot ignore:

Unwillingness to answer questions directly - Honest people answer questions directly. If you ask about customer interest in a product, and the answer starts with, "We are talking to...," that means there are no committed customers. A company needs to be honest about where they are in their sales process, because it is key to revenue generation. 

Any roadblocks to due diligence, especially the phrase, “We need to stay stealth.” - Anything that hinders your due diligence is a problem for your decision-making process and for your potential partner’s ability to raise capital down the road. You want to know that your would-be partner has clean financials and truly owns any intellectual property he or she claims to have. Any savvy investor would want the same assurances. I've seen the "we need to stay stealth" excuse used to obfuscate patent assignment issues that later became a nightmare. Don't fall for it.

An opportunity that is so 'hot' that other people aren’t asking the right questions. - It's easy to be taken in by people who manipulate details to create the illusion of massive momentum. Their ultimate goal is to get others to come to rash decisions, without asking too many questions or negotiating. Only later will you discover that the reality doesn’t match the pitch: the funding hasn’t actually closed, the other team members haven’t actually committed, and what was billed as product development is really a science project with titanic levels of technical risk.

A would-be partner who acts as if their title or status as a media darling should put all your concerns to rest. - Just because someone has a prestigious chair at a top university or is frequently featured in the media does not mean you can trust them, unfortunately. Only some people get to the top because of their own brilliance. Enough said.

Integrity (or lack thereof) travels with people: deal to deal, institution to institution, company to company. Stick with good people, and save yourself a lot of grief.

Collaborative Leadership

Two eminent leadership paradigms during the 20th century -- the power paradigm and the people paradigm. The power paradigm (hierarchy) was created in the early 1900s as part of the industrial revolution and is based on power and control and the belief people needed to be incented or punished to get them to work hard.

The people paradigm, formulated by Dough McGregor of MIT in 1960, recognized people want to work hard, are social beings, work best in teams, and are responsible. With the emergence of the digital age, these paradigms paved the way for the fourth evolution of leadership: collaboration.

Collaborative leadership is not about power and control, telling people what to do and then finding them doing something wrong. Collaborative leadership is about building trust-based relationships, ensuring psychological safety, and giving people ownership over the organization's values, vision, mission, and strategy, as well as their own jobs. It is about facilitating, engaging, and empowering them; forming and developing collaborative teams; and building workplace cultures that honor the human spirit.

In the face of Covid-19, the use of collaborative leadership skills is essential to ensure organizational success. Attached below are several strategies to help you thrive collaboratively in the pandemic.

1. Gain perspective - Take a step back from daily activities to see the big picture. Use your reflection time to describe what is going on in your workplace and how it is affecting you and others, and brainstorm how you want to use collaboration to make a difference. This is transcending the current reality.

2. Be true to yourself - You know who you are, your values, vision, and mission. You are grounded, and as long as you come from that place and apply your collaborative leadership skills, you will be fine. Often rejection or criticism is coming from people who are less sure of themselves or feel threatened. Use empathy, kindness, and your genuine desire to connect and listen, and you may find that they make a shift in their attitudes.

3. Let go: What you resist persists - Be willing to let go. Sometimes it is not possible to find a solution. What you resist often persists. Sometimes dialogue is not the language others understand. You can use the power of your letting go to engage your colleague and, at the proper time, come back to have a productive conversation.

4. Learn to dance - Operating in a power-based organization often requires you to know how to "dance" with that culture. This means being flexible, agile, and patient. Behavioral change does not happen in a straight line. Remember the parable of the tortoise and the hare -- slow and steady wins the race.

5. Respond, don't react - Sometimes, in the heat of the moment, we feel we have to react to what the other is saying. We don't. Remember your grounding. Be reflective. Consider what the other is saying, where it may be coming from, and then respond with empathy.

6. When in doubt, give them ownership - You will find yourself in situations where you are not sure what approach to take. In collaboration, your fail-safe is to give your colleagues or team ownership over the issue. What would they like to do? What do they think the options might be? Remember that people take care of what they own. Giving others ownership means you're not advocating for a position; you are facilitating the team, and trusting them to come up with the answer.

7. Become a master - Your ultimate goal as a collaborative leader is mastery. First, learn the skills, and then practice them so much that you become a master. Once you are a master, you train others, and they in turn will empower and train those they work with. Think of yourself as a pebble in the pond, and that your work has a ripple effect across your organization and in all of your relationships, both inside and outside of work.

8. Depart - Sometimes, the culture of the organization is so toxic or unhealthy that the only option is to leave the situation or job. You first need to honor yourself and your values, well-being, physical health, and family. You tried to make it work. You did your best, but the culture of this organization is simply not ready for collaboration.

Marriage Between Grab & Gojek

An US$18 billion (S$23.7 billion) merger between Indonesia's transportation king Gojek and e-commerce giant Tokopedia would create the kind of champion South-east Asia's largest nation deserves. The real synergies may be hidden below the surface, just like the landmines they face.

Both are ready for a possible deal, with a view towards an initial public offering, A Jakarta listing is a near certainty to show patriotism, while an overseas sale - perhaps in New York - is also likely. With one side selling products online and the other delivering goods and people, the natural symbiosis would appear to be through logistics in a sprawling country that spans 5,100km across about 18,000 islands. That's the kind of end-to-end infrastructure that companies like Amazon.com dream about.

Fintech Goal - Yet the killer combo comes on the back end, in the fintech realm. Both firms, along with Gojek rival Grab Holdings, are keen to expand beyond their founding business models into services such as payments, banking, insurance and loans. Ride-hailing provider Gojek has over 190 million app downloads across the region, with its core market among Indonesia's 267 million people. Fintech will be the next growth driver. More than half the nation's adults don't even have a bank account, Gojek said.

When consumers and businesses are using your apps to buy and sell products, as well as book and deliver transport, you've suddenly got access to millions of customers at multiple touch points. This boosts sales and marketing opportunities exponentially, and provides a depth of data that few rivals can compete with. Throw in the required regulatory licences, and the possibility of creating a financial powerhouse is right there. But so, too, is the potential to mess it up.

Merger & Danger - Mergers rarely go smoothly, and unicorn marriages are even more unusual. While now may be the perfect time to hook up, since the growth of their core businesses was already set to slow even before Covid-19 hit the broader economy, the mechanics and internal friction from a deal could threaten their momentum. Any shakeup of management, job losses, systems integration, or clashes over direction could distract from the larger challenges of transitioning into a giant company that's really ready for public scrutiny.

That's not to say they shouldn't try. Indonesia, as the world's fourth-most-populous nation, deserves a glorious unicorn wedding. But don't be surprised if the couple discovers that married life isn't always blissful.

Managing Your Policy In Covid19

More than 50% of Malaysian don't have life insurance. More than two-thirds of Malaysians are thinking about their own mortality due to the coronavirus pandemic, and only a small percentage believes that they have enough life insurance or other assets to protect their family in the event of their own death. Covid pandemic is a stark reminder to have protection should something occur. Insurers are experiencing applications on the rise due to pandemic. COVID-19 has not been an exclusion for coverage to those with existing life insurance coverage, but it could impact new applications depending on the life insurance provider. 

Review your current life insurance - Policyholders are recommended to evaluate their life insurance policies to see if they should make any changes. If you have insurance, maintain it because it might be harder to get due to the coronavirus pandemic. Many insurers are asking whether an applicant tested positive or was exposed to someone with COVID-19 within 30 days. If so, your application may be postponed, especially if pre-existing conditions put you at greater risk for COVID-19. Some insurers conditional coverage while an application is in the underwriting stage. Other insurance carriers may offer conditional coverage as well, though some have suspended it due to the pandemic.

Decide if you need more coverage - Most Malaysians who have life insurance are underinsured. Being underinsured is when your death benefit does not cover expenses like mortgage, college, food, debts, and clothing for your dependents in the event of your death.
If you've evaluated your current life insurance and you need more death coverage, you will have to go through the insurance underwriting process, which includes a health questionnaire. However, you must not cancel your current coverage until you know you're approved for the higher death benefit. 

Combining term and permanent life insurance - If your goal is increase death coverage, then combine term insurance to complement your existing permanent life insurance. term insurance is the most reasonable cost-wise. Permanent plan offers more flexibility for changes due to life events like birth or marriage. If it's important for you to have coverage that never expires, then permanent life insurance is best as it doesn't expire and has an accumulated cash value that you can take a loan on or use as collateral. Permanent life insurance policies have riders for long-term care insurance along with a death benefit. There are different add-on riders for permanent insurance that are not available for term life insurance policies. 

Converting your term life policy to whole life - Term life insurance lasts for a specified period of time —five, 10, 20, or 30 years. Once your term expires, you have to reapply for insurance again. If you bought a 20-year term life policy at 25, when you are 45 years old your policy will end and you will need to get coverage. Even if you are in good health, life insurance becomes more expensive as you age. Converting term life insurance to permanent takes a portion of term insurance or all and changes the coverage to permanent. You do not need to submit to additional medical underwriting because your policy would convert at the health rating under the original term policy. Your health insurability is locked from the time your term life insurance became effective. When you make the conversion from term life to permanent, understand that there are different types of permanent life insurance policies, such as whole, universal, and variable life. It is important to talk to your insurance agent or financial planner about the differences between the various permanent life insurance policies to understand what works best for your situation.

Talk to a financial planner - If 2020 has stressed your finances, start 2021 by talking to a financial planner to see what you can do to rebuild your finances and develop a plan for a more stable financial future. A financial planner is not just for the wealthy. The job of a financial planner is to evaluate your current financial situation and help you develop a plan to achieve your financial goals. Everyone's circumstances varies and that is the benefit of a good planner — meeting you at your level and planning according to your budget and needs.
Life insurance, particularly permanent life insurance, can be a tool to build wealth. Start with your bank to see if it offers financial counseling. Contact your life insurance agent to see if they have financial planning that goes beyond term life insurance.

I-Sinar - Friend Or Foe??

I-Sinar is an immediate respite at the expense of future financial stability. There is no doubt that giving people the opportunity to dip into their retirement funds has some economic plus points. It is meant to boost consumer spending, which is a first step towards economic recovery.

On the other hand, the average Malaysian has very low financial literacy, running the risk of him making poor decisions that lead to disastrous situations.

i-Sinar - is a scheme that enables contributors to withdraw up to RM10,000 from Account 1 of their EPF savings. EPF contributors can now check for updates on their i-Sinar applications on its website. 

Under normal circumstances, the Account 1 is a “no-go” zone. The contributor is not allowed to touch a sen of the money until he clocks out for the last time. The i-Sinar programme is therefore a violation of that principle.

The rationale is that with that additional cash in hand, it can help a family tide over a lean period caused by pay cuts or job losses. This could benefit the almost 90,000 people who have already lost their jobs as a result of the economic fallout caused by the Covid-19 pandemic.

However, a majority of Malaysians find it difficult to grasp the principles of financial planning. A survey conducted in October last year showed that 70% of the 3,333 respondents are in need of financial literacy support.

The overall picture is ugly. Data from the Insolvency Department shows that 84,805 Malaysians were declared bankruptcy from 2015 to 2019, and 26% are aged 34 and below.

High Debts Ratio - In 2018, Bank Negara Malaysia revealed that 47% of Malaysian youth have high credit card debts. The average EPF contributor spends his entire savings within three years after retirement. Many individuals struggle with money management because they lack the know-how to manage their finances. This is compounded by the fact that they are more vulnerable to scams. Given that more individuals are out of a job, criminal activities such as financial scams have become more rampant.”

The less financially-literate have found it difficult to identify financial products and services that are appropriate for their needs, leading them to make poor monetary decisions.

Nonetheless, the i-Sinar programme is not all bad. Those who do not actually need the money to meet immediate financial obligations can invest the cash in private retirement schemes.

Tax Relief - An investor can benefit from the long-term tax exemption of up to RM3,000 until 2025, enabling him to not only boost his retirement fund but also benefit from the yearly tax deduction.

An investor can benefit from the long-term tax exemption of up to RM3,000 until 2025, enabling him to not only boost his retirement fund but also benefit from the yearly tax deduction.

All said, whether the i-Sinar will have the desired effect or bring financial ruin will be known soon enough.

Jiwasraya Insurance Is Not Investment

Indonesian overnment decision to restructure the policies of Jiwasraya is a win-win solution for customers, the company and the state. People need to be more aware of the risks of investment. Policy restructuring is the best option for customers and the state. Everybody, including customers, will have to share the losses resulting from this corporate crime. But through this scheme, these losses will be the minimum possible.

Indonesia Finance Group (IFG) - The ministry of finance and the ministry of state-owned enterprises have worked hard to recover the money belonging to 2.59 million Jiwasraya customers by establishing the Indonesia Finance Group (IFG), a new company under Bahana Pembinaan Usaha Indonesia, a state-owned underwriter and insurance holding firm.

IFG Life, a subsidiary of IFG, will take over the policies resulting from the restructuring of Jiwasraya. Since it began to default on payments two years ago, the state-owned insurance company has missed payments totaling Rp16.8 trillion to the 17,452 participants in its bancassurance program. There is also Rp1.5 trillion in outstanding payments from traditional policies. Like a sinking ship, the passengers are transferring to a lifeboat.

Policyholder Penalised - Problems appeared when a group of customers rejected the plan because of the losses they would have to bear. They are participants in the JS Saving Plan bancassurance program, an investment plan dressed as insurance that was marketed jointly with a partner bank. They objected because they will have to wait 15 years to get their money back. If they want to withdraw it in only five years, they will pay a penalty of between 29 and 31 percent of the policy value.

This rescue scheme is a bail-in, a payment of Rp22 trillion in the form of a state capital injection to Bahana. IFG Life will use this capital to operate in the same way as other companies from the start of next year. A significant period of time will be needed before it can make enough of a profit to pay out claims and return the government capital. This method is different from a bailout, which would make it possible for Jiwasraya to immediately use the cash injection to pay customers’ claims. However, of course, we do not want these trillions of rupiah simply to disappear from state coffers.

Insurance Is Not Investment - Bancassurance policyholders should have realized from the start that the money they paid was for an investment plan. Marketed since 2013, the JS Savings Plan offered tempting returns of nine to 13 percent. This was far higher than the interest on bank deposits, which at the time was only between five and seven percent.

Any form of financial investment has the potential to result in losses, especially offers that seem too tempting. The JS Saving Plan managers invested in low-quality stocks. As a result, the company lost Rp16.8 trillion and caused losses to the state. Six senior managers of Jiwasraya and the company that manipulated the stocks were jailed for life as a result of this corporate crime.

The JS Saving Plan - makes up 92 percent of the claims owed by Jiwasraya. Although it was offered through a bank, bancassurance is not a banking product and therefore is not covered by the Deposit Insurance Agency. Therefore, demands for the state to return all of the customers' investments within a short period of time are sorely misplaced.

The Jiwasraya restructuring team should go ahead with their scheme to solve this mess. After all, those who refuse to move to IFG Life will remain Jiwasraya customers. Their policies, worth up to billions of rupiah, will be paid out when the 161-year-old company manages to sell its assets, including the Cilandak Town Square shopping center in South Jakarta. However, given that some of its assets are not liquid, it is not clear when these funds will be available.

More Turning To Insurance, Wills & Trusts

More Americans turned their attention to life insurance, wills and trusts last year as the coronavirus pandemic made the reality of death unavoidable. The number of life insurance applications from people under age 44 increased by more than 7 percent in 2020. Life insurance applications for the age group had been mostly down over the last several years. 

While several factors contributed to the spike, many reports pointed to the pandemic and the insurance awareness it brought on. People are looking at mortality like they've never looked at it before, especially that younger age group. 

More than 22 million jobs disappeared during the early stages of the pandemic, and only 12 million were recovered, forcing many workers to leave behind their employer-paid life insurance through their employee health benefits packages.

About 54 percent of Americans had life insurance earlier this year, most of them through their employers. If you leave your job, that life insurance goes away. People who were losing their jobs or being furloughed were losing their insurance coverage and looking for ways to replace it.

The exact number of applicants filing for life insurance isn't known, as some have applied more than once and others have been denied. 

Estate planning industry estimate that the number of people drafting wills and trusts is also on the rise because of the pandemic. 32 percent of people ages 18 to 34 drafted wills because of Covid-19, 21% of that group drew up the paperwork because they knew someone who had contracted the virus. The pandemic "was an event that made people face their mortality," Kirchick said. "It's making people think about getting their affairs in order."

Life insurance applicants typically fall into three categories: those 44 years old and younger, those ages 45 to 59 and those over 60. The percentage of applications in the youngest group skyrocketed by 18.9 percent in July and by 12.4 percent in August as the pandemic worsened. Overall, insurance applications for all three groups are up by 4 percent this year.