Saturday, January 31, 2009
Thursday, January 29, 2009
- real property / immovable property
- personal property / movable property
- tangible personal property
- intangible personal property
- property right
Before his estate can be distributed according to his will or the related law, he has to settle all of his debts or liabilities like taxes, loans and others. So, he still has to settle his debts even with a will. Without a will, the distribution of his estate will take a longer time than the time he takes when he has a will.
Real property refers to anything that is permanently attached to a land such as buildings, houses, shoplots and so on (including lands). These items can't be moved.
Anything that is not real property is called personal property. Personal property can be either tangible or intangible. Tangible personal property refers to physical personal property such as cars, watches, jewellery and so on. Whereas intangible personal property refers to anything that we can't touch or hold like shares, bonds, business secrets, copyright, trademarks and others.
Generally, a property right is the legal right to use resources or refers to the ownership of resources like lands, capital and other goods.
The theories of property are very complicated. For details, please click the following links:
Wednesday, January 28, 2009
Tuesday, January 27, 2009
When a person dies intestate (without making a will), his assets will become an estate. After his liabilities have been settled, his remaining estate will be distributed according to the Distribution (Amendment) Act 1997 in West Malaysia and Sarawak. Intestate Succession Ordinance 1960 is the law governing intestacy in Sabah. Both laws are only applicable to non-Muslims and non-natives. For Muslims, the law governing intestacy is Islamic Distribution Laws.
For details, please click the following links:
Please read my posts titled WHAT WILL HAPPEN TO A PERSON'S ESTATE IF HE DIES TESTATE (WITH A WILL)? (January 28, 2009) and FINANCIAL PLANNING SEMINAR (THIRD DAY). (January 21, 2009).
Monday, January 26, 2009
2. Bahasa Malaysia
Sunday, January 25, 2009
For those who have more than one car under their name, NCB is transferable from one car to one of the other cars. For example, car A is a new car (high premium) and car B is an old car (low premium) and they are entitled to a bonus of 25 % and 55 % respectively. The owner of these two cars can transfer the NCB from car B to car A to enjoy more discount. In other words, car A and car B now are entitled to a bonus of 55 % and 25 % respectively. Car A and car B must be owned by the same driver in order to enjoy this benefit.
In order to overcome this problem, the insurers have to adopt more stringent underwriting controls on motor insurance including the application of premium loadings. As a result, the renewal and availability of motor insurance in 2009 will be significantly affected.
However, fortunately, motor vehicle owners who find difficulty in obtaining or renewing their motor cover can turn to the Malaysian Motor Insurance Pool (MMIP) to obtain motor insurance protection for their vehicles.
Wednesday, January 21, 2009
Tuesday, January 20, 2009
From the lesson, I know that we can only minimize our tax payment. Escaping our tax payment will only cause us and our family a big problem when we are no longer around in the future.
Monday, January 19, 2009
Unless my clients want, I will never fill the application forms in front of them not because I want to do hide something but because I want to save my time and their time. In fact, it is alright if an insurance agent fills the application forms without our presence as our application forms will be photostatted and attached to our policy contract. After we get our policy contract, we must make sure the photostat of application forms are correctly filled by the agent. If there is a mistake, we can ask the agent to correct it. If we find that the policy contract is not relevant or doesn't have the benefits the agent has mentioned earlier, we still have 15 days from the date we receive our policy contract to cancel it and get back our money after deducting all the expenses incurred by the insurance company like what I have mentioned previously in my post titled WHAT IS A 'COOLING OFF PERIOD' OR 'FREE-LOOK PERIOD'? (January 6, 2009).
One of the points he impressed me very deeply was "We, as insurance agents or planners, should never always just think of U$$$D when we approach a prospect. We are there to help him". Of course, money is very important as we don't have any income and subsidy from AIA Berhad if we can't close a sale. But, if we just think of our commission without taking our clients' needs into consideration, our commission and career will not last long. Once we can take care of their needs, they will never surrender their policies unless they have problem in paying premium. I am not very sure how much my commission is for certain life insurance plans. So, when I approach a prospect, I can pay more attention to his needs instead of my total commission from the sale.
Thursday, January 15, 2009
Tuesday, January 13, 2009
In financial planning, there are four decisions that can't be delayed:
- Last Expenses.
- Children's Education.
- Cost Of An Operation.
The last expenses include funeral expenses, medical expenses, hospital expenses and others. These expenses must be settled immediately after a person's death.
If our children want to further their study at the age of 18, we, as parents, can never ask them to delay the decision. Of course, they can borrow money from Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) but if the total cost of studying medicine in four years is RM 300,000, the maximum amount they can borrow is around RM 100,000. The balance RM 200,000 must be borne by parents. They can also try to apply for a scholarship. However, the competition of getting a scholarship in the future will be fiercer as more and more students are able to get very good results nowadays.
Everyone of us hopes to retire at the age of 55 or earlier. But, without sufficient retirement funds due to the lack of retirement planning, we are not able to achieve the dream. As a result, we still have to work after 55 years old unless our children are willing and able to take care of us. Unfortunately, parents can raise many children but a child sometimes can't even take care of a parent.
A hospital especially a private one is a very realistic organization. The cost of an operation must be settled immediately. Sometimes, we can't even get the treatment we deserve not because we are poor but because we have no enough money with us. That's why we must have a medical card with us all the time to avoid this undesirable situation.
- Goal Setting - I will determine a prospect's goal of buying an insurance plan like retirement, children's education and so on.
- Fact Finding - I need his information about cash flow, asset, liability, investment, insurance and others.
- Analysis - Based on the information provided, I will analyze it scientifically to see whether he is fully and financially protected by his insurance plans.
- Recommendation - Based on the analysis, I will provide practical suggestions and solutions. If the result shows that his insurance need is fulfilled, no recommendation will be made.
- Review - If the prospect accepts my recommendation, I will do a review once a year for free in order to make sure that his insurance need is always fulfilled.
Even though our banking sector is encouraged to lend money to qualified people to stimulate our economy, unfortunately and in reality, most of their loan applications are rejected due to the world economic uncertainty now. If you do notice, there are several advertisements about micro financing recently. The advertisements show that it is not easy to get a big loan from a bank nowadays. Micro financing is a very small loan to micro entrepreneurs (small and medium enterprises or SMEs). According to StarBiz, with minimal documentation, these people can get a loan without collateral. Application process takes between two days and two weeks. Nevertheless, the loan amount is very small such as RM 50,000 at most.
From the meeting yesterday, I am surer than ever that AIA Berhad is very stable and is not influenced by all the bad news about AIG in US. Recently, one agent of AIA Berhad has closed an international takaful case worth USD 100,000 (USD 1 = RM 3.6020, 14 January 2009). This premium is paid every year. There was another application of international takaful worth USD 150,000. But this application was already rejected by AIA Berhad due to certain reasons. These two cases are only two of the similar cases I know. It shows that consumers in Malaysia are still very confident with AIA Berhad.
Please click the following links (press clippings):
2. Bahasa Malaysia
Sunday, January 11, 2009
Every one of us wants to live comfortably. We want to protect our family, at least financially, if we are no longer around. We want our children to get the best education in the world. We also want a comfortable life after retirement. We have unlimited needs. In order to fulfil these needs, there is a price we have to pay as there is no such thing as a free lunch in the world. The price is reflected in the premiums of insurance plans.
I think that insurance is very expensive only when we don't need it. Believe me. If an insurance agent asks a seriously ill patient in a hospital to buy a medical card, life insurance and 36 critical illnesses, for sure the patient will buy them without hesitation even he has to pay a monthly premium of RM 10,000.
The importance of a personal accident plan was explained previously in my post titled WHY IS A PERSONAL ACCIDENT (PA) PLAN VERY IMPORTANT IN OUR LIFE? (January 9, 2009). Then, why do we need to have a 36 critical illnesses (CI) plan?
Friday, January 9, 2009
According to the policy contract of life insurance of AIA Berhad, Presumptive Disability means the occurrence of any one of the following:
- Total and irrecoverable loss of sight of both eyes.
- Severance of two limbs at or above wrist or ankle.
- Total and irrecoverable loss of sight of one eye and loss by severance of one limb at or above the wrist or ankle.
If any one of the three cases above happens to an insured, he will be compensated immediately.
Wednesday, January 7, 2009
- Class 1 - White collar workers in non-hazardous industry and confined within the office premises.
- Class 2 - Workers overseeing or superintending, engineer, supervisor of non-manual work with semi-hazardous industry.
- Class 3 - Skilled or semi-skilled workers using light machinery.
- Class 4 - Industrial workers using machinery or unskilled workers.
The classification of the occupation classes above is set by AIA Berhad. The occupation classes for other insurance companies may be different from AIA Berhad.
The answer for the question above can be yes or no. For AIA Berhad, it all actually depends on the state of health of the housewife. If the housewife is still healthy, she doesn't need to pay extra premium. Whereas, if the housewife is not healthy, she has to pay extra premium or her application will be rejected by the insurance company.
Tuesday, January 6, 2009
- Heart Attack
- Coronary Artery Disease Requiring Surgery
- Other Serious Coronary Artery Disease
- Angioplasty Or Other Invasive Treatments For Coronary Artery Disease
- Heart Valve Replacement
- Fulminant Viral Hepatitis
- Chronic Liver Disease
- Primary Pulmonary Arterial Hypertension
- Chronic Lung Disease
- Kidney Failure
- Surgery To Aorta
- Aplastic Anaemia
- Major Organ Transplant
- Loss Of Hearing / Deafness
- Loss Of Speech
- Major Burns
- Multiple Sclerosis
- Paralysis / Paraplegia
- Muscular Dystrophy
- Alzheimer's Disease / Irreversible Organic Degenerative Brain Disorders
- Motor Neurone Disease
- Parkinson's Disease
- Terminal Illness
- Benign Brain Tumor
- Major Head Trauma
- Bacterial Meningitis
- Apallic Syndrome
- Loss Of Independent Existence
- Aids Due To Blood Transfusion
- For critical illness no. 6, only 10 % of the sum assured, subject to a maximum of RM 25,000 shall be payable (limited to only 1 payment). The remaining balance of the sum assured will remain in force.
- Critical illnesses no. 24, 26 and 34 are covered up to the age of 65 of an insured.
- The waiting period for critical illnesses no. 2, 3, 4, 5, 6, 7, 13, 29 and 36 is 60 days. For the other 27 critical illnesses, the waiting period is 30 days. For a male or female cancer, the waiting period is 120 days.
For medical card called ExcelCare Plus or ECP from AIA Berhad, waiting period can be divided into three:
- Hospitalization or surgery due to illnesses or out-patient treatment for kidney dialysis within the first 30 days after the issuance or reinstatement of ECP contract.
- Out-patient treatment for cancer within the first 60 days after the issuance or reinstatement of ECP contract.
- Treatment or surgery for tonsils, adenoids, hernia or a disease peculiar to the female generative organs within the first 120 days after the issuance or reinstatement of ECP contract.
In sum, an insured is fully protected by his medical card only after 120 days after the issuance or reinstatement of ECP contract. All the three cases above will only be covered after 30 days, 60 days and 120 days respectively.
36 critical illnesses can be covered by many types of insurance plans from AIA Berhad. Waiting period for 27 critical illnesses is 30 days. For the other 9 critical illnesses, the waiting period is 60 days. For details, please read my post titled A LIST OF 36 CRITICAL ILLNESSES. (January 6, 2009).
In other words, if a consumer thinks that the newly purchased Medical and Health Insurance product is not relevant to him, he still has 15 days from the date he receives his policy contract to get back his money after deducting all the expenses incurred by the insurance company.