KEYMAN INSURANCE AND INCOME TAX

Are you buying Keyman Insurance for your business?

Two common questions?
1) Premium can claim tax (deductible for income tax)?
2) Insurance Proceeds need to pay tax (taxable receipt)?

The answer is, it DEPENDS.

The taxability of the insurance proceeds depends on whether it is a Term Life policy, Accident policy, Whole Life policy or an Endowment policy. If it is a Term Life or an Accident policy, the proceeds receivable will be taxable on the employer or the Company since the Insurance Premiums are allowable for tax deduction.

Conversely, where it is a whole life or an endownment policy, the proceeds available will be considered to be a capital receipt and not taxable on the employer or the company since the insurance premiums are not allowable for tax deduction.

In short,

Whole Life / Endowment => Premium NOT Deductible => Proceeds NOT Taxable
Term Life / Accident => Premium Deductible => Proceeds Taxable

Source / Reference:
Publlic Ruling No 2/ 2003 issued by Director General of Income Tax Department (aka LHDN)

INCOME PROTECTION......WHY YOU NEED IT.?

Income protection insurance is a means whereby you can still receive up to 75 percent of your usual income, despite the fact that you have become injured or ill to such a degree that you can not carry out your work anymore. Without having such protection you would have no other choice than to eat up your savings and even finish up on a government disability pension in order to survive. What's more, if you are the owner of a small business you might have to employ somebody else to do your work for you so that your business can carry on without you. Income protection insurance is therefore just as important an item in your insurance portfolio as is life insurance.

Like most personal, or life insurance policies, you, or your dependents, never fully realize their full value until you have to make a claim. If you have nothing to claim against you can find yourself in a seriously adverse financial position very quickly. Therefore your need for income protection will depend on how much you stand to lose, should you become ill or injured to the extent you can no longer contribute to your own welfare.

Income Protection Should Not be Confused With Workers Compensation.

Workers compensation will cover all your medical costs and out of pocket expenses but if you are to be out of work for any extended period of time you could still find yourself in need of income protection insurance. Of course if you work for yourself you will not even have any workers compensation to help you out, plus even if you are covered by your employer's compensation, if you are injured outside of work Workers Compensation doesn't have to pay.

The risk of not having adequate income protection insurance could mean the eventual loss of your family home, or being unable to pay your rent, even your day to day expenses like buying food for your table would be affected.
Compare Quotes and Terms From Several Companies Before Deciding

In order to find the best deal as far as income protection insurance in concerned you will have to compare quotes from several life insurance companies. Premiums and terms can differ greatly between companies and the cost of the cover can depend a lot on how long you are willing to wait before your income protection payments start being applied.

Another factor to compare will be the length of time you wish the payments to continue for. It is possible to have the benefit continue until you reach retirement age. The amount of monthly payments you wish to receive will also affect the cost of the cover.

All these factors will need serious thought before you go ahead and sign up for protection only to find that the policy you chose doesn't give you all you need to cover things like your rent or mortgage, car payments, credit cards and general living expenses. The payment benefits are normally capped at 75 percent of your average income before you became sick or injured, because it has been determined that anything more than that would be an incentive to not return to work when you recover.

There are two major issues to keep in mind when finalising your income protection policy with a life insurance company these are:

Be certain that the policy you are signing up to is index linked so that it will automatically keep up with any inflationary increases.
Make sure that it is a non-cancellable policy. This means you will always be assured that your policy will keep being renewed every time it comes due for renewal. If you don't make sure of this right from the start you will find yourself having to undergo a health check every time you want to extend it further.

If you leave yourself open to re-assessment you could face an increase in premium costs. You should also examine the terms and conditions for a clause that could see your benefits lessened if you had another income stream to fall back on. Some income protection insurance policies will only pay you if you cannot work in the field you are trained to work in. This means that if any other work is around you may have to take it on.

Other policies will pay you regardless of whether other work is available or not, as long as you can't work in an area of your own expertise. This is particularly important for a professional such as a doctor who probably could not practice as a GP anymore because of his or her injury or illness but could work as a watchman at an industrial site where all he would be called on to do would be to monitor on site cameras.

As with life insurance, income protection insurance is best taken out with a solid reliable insurance company that has been around for a long time. The longer such companies have been in operation the more policy holders they obtain and the stronger they become. Longevity is also a good sign that people trust them and stay with them

SUM ASSURED = Level Of Love

Did your spouse ever ask you this question: How much do you love me?I think there is no simple way we can give a great answer. Is your love deeper than sea? Higher than any bird ever reach up into the sky? (with advance technology, we got space shuttles travel many light years beyond the sky limit).
If I am going to put the love level into a measurable number, I think there is no other way than using your insurance sum assured! And make sure that it is nominated to your love one! The number not only shows the monetary amount of your love, it also shows how much the love we are willing to afford.
The richest Chinese in the world Li Ka Shing was once asked about how much wealth he will distribute to his heirs. He said it all depends on how much insurance he bought and nominated to them.
Certainly, love comes in many forms. Buying life insurance on our own life and HIBAH it to our spouse will ensure our love stay on forever. Some husbands say his widow will remarried. The fact is they leave no choice to the widow. Why remarry if your widow receives a lot from your insurance proceed? If she is going to remarry anyway after she got rich, I don’t think she will wait until the day you die to make the decision.

Bina Tabung Kecemasan Sebelum Tabung Sedia Ada Pecah!!!

BINA TABUNG KECEMASAN sebelum segalanya terlambat!!!

Apakah TABUNG KECEMASAN ? Sebelum melihat apakah gunanya TABUNG KECEMASAN, saya suka menerangkan sedikit maksud kecemasan itu sendiri. Jika sebuah keluarga mempunyai PENCARI NAFKAH utama, peranan beliau pastinya penting. Setiap bulan, si PENCARI NAFKAH akan menghadirkan sejumlah wang yang disebut gaji dimana wang ini digunakan bagi tujuan sara hidup seperti tempat tinggal, makan minum, pakaian, barang keperluan harian yang lain, bil – bil, membayar hutang piutang kereta, rumah dan sebagainya, memberi nafkah kepada isteri, pendidikan anak – anak, hiburan, memberi wang kepada ibu bapa dan pelbagai perkara lagi yang digunakan dari WANG GAJI tersebut. Bukankah PERANAN si PENCARI NAFKAH ini penting??

SEANDAINYA, suatu hari nanti jika ditakdirkan, si suami atau PENCARI NAFKAH ini hilang keupayaan bekerja di sebabkan meninggal dunia atau kemalangan, adakah beliau masih mampu menghadirkan WANG GAJI tersebut untuk bulan – bulan seterusnya?? Mampukah beliau melunaskan tugas sebagai PENCARI NAFKAH bagi membayar keperluan – keperluan yang disebut tadi ? SUDAH PASTI TIDAK!!! Dan pada ketika ini, keluarga akan ditimpa masalah BENCANA KEWANGAN dan inilah yang disebutkan sebagai waktu KECEMASAN bagi sebuah keluarga!!

Sudahkah anda membina TABUNG KECEMASAN bagi keluarga ? Jumlah tabung kecemasan ini bukanlah seribu dua, tapi jumlahnya adalah cukup bagi tujuan sara hidup bagi tahun – tahun yang seterusnya. Mungkin boleh mencapai RM 500 000. Ya, setengah juta. Bolehkah dalam masa terdekat anda menyimpan RM 500 000??? Mungkin boleh jika anda menang nombor ekor ( Orang Islam tak boleh main ekor ). Dengan simpanan RM 5000 sebulan, anda memerlukan 7 tahun bagi menyimpan RM 500 000. Mampukah anda menyimpan RM 5000 sebulan sedangkan gaji anda tak lebih RM 3000???

Sebenarnya, anda mampu bina TABUNG KECEMASAN dengan cara yang mudah dan selamat, sekiranya anda menyimpan di TEMPAT YANG BETUL, dengan komitmen bulanan tak lebih 10% dari jumlah gaji anda *. Ya BENAR, sekiranya anda hilang upaya bekerja disebabkan apa jua punca, anda telah pun mempunyai TABUNG KECEMASAN yang boleh menolong anda walaupun anda baru menyimpan tak sampai 2 tahun!!!

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Hidup bukanlah untuk meminta sedekah!!!

Pernahkah anda melihat orang meminta sedekah di kaki lima Chow Kit atau pun selepas solat Jumaat?? Ya bilangan mereka ramai. Sukarnya melalui hidup seperti itu hanya Tuhan yang tahu. Cuba letak pemikiran anda ke tempat mereka, jika PENCARI NAFKAH keluarga hilang upaya bekerja, mampukah anda berada di tempat yang sedemikian ?

Mungkin dari sudut pemikiran anda, tidak mungkin anda akan menjadi seperti gambar di atas. Sekurang – kurangnya, anda masih mempunyai adik beradik dan saudara mara untuk meminta pertolongan wang ringgit. Tapi selama mana mereka boleh menolong anda??

Keluar bekerja ??Tidak mungkin anda sebagai isteri yang kehilangan suami untuk keluar bekerja mencari nafkah. Ya betul, anda mampu melakukannya. Anda boleh keluar bekerja. Anda juga boleh menghadirkan gaji seperti mana suami anda mencari gaji untuk menyara keluarga.

Persoalannya, adakah anda mampu :

1. Memperoleh gaji yang sama atau lebih lagi seperti apa yang suami anda perolehi?

2. Adakah anda mampu membayar hutang piutang yang ditinggalkan suami?

3. Siapa yang akan menjaga anak – anak anda semasa anda keluar bekerja? Untuk mengupah pengasuh, anda hanya akan meningkatkan kos perbelanjaan anda sedangkan gaji anda tidak setinggi mana.

4. Setelah bertahun – tahun hidup bergantung kepada suami, anda akhirnya terpaksa keluar bekerja!

5. Adakah anda mampu memberi komitmen kepada anak – anak setelah anda keluar bekerja ?

6. Perancangan masa depan pendidikan anak – anak dengan gaji anda yang kecil?

Dan banyak lagi persoalan yang belum mampu di jawab…bukan kah lebih baik jika anda memiliki tabung kecemasan sebagai plan kecemasan untuk kehidupan anak – anak anda?? Tidak kisah sekiranya, anda masih mahu keluar bekerja, sekurang – kurangnya, di dalam akaun bank anda, masih mempunyai RM 100 000 lebih sebagai dana sokongan kepada anda dan anak – anak.

Ya, TABUNG KECEMASA inilah yang meniup semangat anda untuk meneruskan kehidupan disamping anak – anak tercinta!!!

300 000 jadi anak yatim akibat kemalangan jalan raya???

300 000 jadi anak yatim akibat kemalangan jalan raya ??? Hakikatnya, kehilangan ibu atau bapa atau kedua – dua nya sekali akibat kemalangan merupakan satu tamparan yang maha hebat bagi anak – anak kecil yang masih memerlukan bimbingan dan kasih sayang seorang ayah dan ibu…….

Kesan dari sudut emosi memang tidak dapat di ubati, tetapi anda BOLEH mengurangkan kesan tersebut jika anda mewariskan HARTA WARISAN KECEMASAN kepada isteri atau anak – anak sekiranya anda meninggal dunia atau hilang upaya akibat kemalangan……

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Kos Merawat penyakit kritikal umpama membeli sebiji apartment !!!

Kalau hari ini saya pergi ke hospital swasta, saya tertanya – tanya, adakah mereka sudah cukup banyak wang untuk membiaya kos rawatan penyakit mereka ? Saya pernah bersembang dengan pesakit dari Acheh yang mendapatkan rawatan di hospital swasta di Kuala Lumpur. Disebabkan kurangnya kepakaran dan kemudahan di Acheh, mereka mencari alternatif rawatan di Kuala Lumpur. Dan ada di antara mereka menjual tanah dan rumah dengan kadar yang murah untuk mendapatkan duit segera bagi membiaya kos rawatan tersebut.

Bagaimana dengan rakyat Malaysia? Adakah anda mampu mendapatkan rawatan di hospital swasta dengan kemungkinan menanggung kos rawatan yang tinggi. Ada di antara mereka berkata, majikan menanggung kos rawatan mereka. Ya betul, tapi sampai bila? Selepas anda tamat perkhidmatan di tempat kerja tersebut, maka hilanglah kelayakan anda untuk mendapat kos rawatan percuma di hospital swasta. Apa alternatif anda?

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Kanser Rahim pembunuh no 2 wanita di Malaysia

Bercakap mengenai penyakit kanser, saya teringat kos rawatannya yang boleh membeli sebiji apartment. Untuk membeli sebiji apartment, anda mempunyai kemudahan membuat loan bank untuk tempoh 30 tahun. Tetapi bagi kos rawatan penyakit seperti ini, tiada kemudahan loan bagi anda!!

1 dari 15 wanita mengidap kanser payu dara!!

Anda pernah dengar kos rawatan kanser mencecah RM 300 000 ??  Ya RM 300k  tokey kedai tomyam pun boleh bankrap!!

Mungkin yang paling murah bawah RM 20 000..tapi adakah anda mempunyai wang RM 20 000 untuk kos rawatan ?

Apa yang boleh anda harapkan hanyalah duit dari minta derma orang ramai, duit KWSP akaun 2, duit dari insurans kilang ( kalau ada ), yang mana totalnya mungkin tak sampai RM 10 000. Dalam keadaan sakit begini, RM 10 adalah sangat berharga. Dan alangkah bagusnya kalau ada pihak yang boleh menanggung kos rawatan anda!!

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Yang murah hanya di Hospital Kerajaan??

Ya saya setuju, kerajaan pada hakikat yang sebenar cuba dengan sedaya upaya bagi memberikan perkhidmatan yang terbaik kepada rakyat Malaysia pada kadar dan kos yang termurah. Cuma yang agak membimbangkan adalah, keupayaan hospital kerajaan bagi menyediakan kemudahan terbaik bagi semua pesakit. Timbul beberapa isu mengenai kebanjiran pesakit yang diluar kemampuan kemudahan hospital untuk menampung sepenuhnya pesakit – pesakit tersebut.

Terlampau sesak??

Pertambahan drastik pesakit tidak setara dengan kemudahan yang dimiliki oleh Hospital Kerajaan.

Akibat dari kekurangan ini, ramai pesakit terpaksa dimasukkan ke dalam SENARAI MENUNGGU yang boleh memakan masa setahun lebih. Bagi kes penyakit kanser, adalah PENTING jika pesakit mendapatkan rawatan awal. Dan jika ia tidak mampu dilakukan di hospital kerajaan, pesakit tiada pilihan untuk mendapatkan rawatan di hospital swasta yang kos rawatannya adalah lebih tinggi.

Untuk memudahkan anda mendaftar dengan 85 hospital panel swasta seluruh Negara, anda mesti mempunyai medical card yang akan diceritakan di akhir artikel ini.

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Orang Miskin  di larang sakit????

Patutkah orang miskin dilarang sakit ?? Mereka juga manusia, punya hati, paru2, jantung, dan anggota2 badan lain yang mesti berfungsi dengan baik seperti mana orang – orang kaya. Yang bezanya, orang kaya BERKEMAMPUAN mendapatkan rawatan kelas PERTAMA di luar negara. Menteri2 semuanya ada kelas. Buat operation di US.

Tapi orang miskin tiada keistimewaan itu. Mereka hanya boleh pergi ke hospital kerajaan. Pun begitu, kalau hospital kerajaan juga memerlukan perbelanjaan untuk pembedahan, adakah orang Miskin mempunyai wang untuk pembedahan tersebut???

Anda orang miskin ?? Mengikut kajian, bagi sesiapa yang HIDUP DI BANDAR DAN GAJI RM 3000 KEBAWAH, DI KATEGORI DALAM GOLONGAN MISKIN. YA MISKIN BANDAR!!! Adakah golongan ini mampu mendapatkan rawatan sekurang – kurangnya di hospital swasta dalam negara??? Tanyalah mereka!!! Selama ini, kalau nak dapatkan rawatan untuk anak dan isteri di hospital swasta, MAJIKAN TANGGUNG. Bukan kerana mereka kaya, tetapi mereka hanya bernasib baik. Selepas perkhidmatan mereka tamat dengan majikan tersebut, mereka belum tentu boleh pergi ke hospital swasta seperti biasa. Lepas pencen nanti, belum tentu boleh pergi ke hospital swasta seperti mana semasa bekerja!!!

Jadi, inilah masa terbaik untuk dapatkan JAMINAN supaya bila dah pencen nanti, masih boleh pergi ke hospital swasta dan kos masih ditanggung, bukan majikan, tetapi syarikat lain yang memberi JAMINAN tersebut!!!

Fikir – fikirkan lah….

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Tak sanggup melihat anak menderita!!

Menderita sakit kritkal pun sudah cukup membuatkan hati remuk, apatah lagi yang sakit itu adalah anak sendiri. Pendek kata, kalau dalam keluarga, salah seorang dari mereka sakit, satu keluarga akan merasa kesannya. Terdera dek emosi dan tekanan untuk mendapatkan rawatan terbaik untuk mereka.

Hantar ke hospital kerajaan pun belum tentu akan zero kos entry, walau pun tak tinggi..RM 5000 sahaja..tapi ia sudah cukup memadai untuk membuat ibu bapa pening mencari wang RM 5 000 tersebut!!

Tatkala masih kecil anak – anak ini terpaksa melalui kehidupan dengan penyakit! Sudah menjadi ketentuan Illahi dalam ujian hidup. Walaubagaimanapun, anda sebagai ibu bapa berhak mendapatkan rawatan terbaik untuk anak – anak.

Anda hanya ada beberapa pilihan untuk memberi perkhidmatan terbaik untuk anak – anak!!

1) Dapatkan rawatan di hospital kerajaan yang mana anda bakal berhadapan dengan masalah kesesakan, tempoh menunggu, waiting list dan lain2….

2) Dapatkan rawatan di hospital swasta dengan menggunakan insurans majikan anda! Atau anda mahu guna duit sendiri???

3) Dapatkan rawatan di hospital swasta dengan menggunakan wang dari KWSP Akaun 2 melalui Skim Penyakit Kritikal

4) Dapatkan rawatan di hospital swasta dengan JAMINAN KEWANGAN untuk rawatan penyakit kritikal tersebut.

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BINA TABUNG KECEMASAN UNTUK KELUARGA PADA HARI INI!!!

Nak bina tabung kecemasan beratus ratus ribu secara simpanan di bank atau pelaburan saham amanah, ia akan MEMAKAN MASA YANG LAMA dan MENAGIH KOMITMEN PELABURAN BULANAN YANG TINGGI!!! Setuju???

Saya bagi anda satu jalan, BAGAIMANA NAK MEMBINA TABUNG KECEMASAN SECARA AUTOMATIK hanya setelah sebulan anda menyimpan!!!

Kaedah yang digunakan adalah juga kaedah simpanan pelaburan dan bulanan. Yang berbeza adalah, tempat di mana anda menyimpan wang anda!!!

Jumlah yang anda perlu simpan, sy boleh katakan hanya 10% dari gaji anda…mungkin kurang dan mungkin lebih, bergantung kepada keperluan kewangan anda!!!

Sebagai contoh, jika anda bergaji RM 30 000 setahun, dengan menyimpan 10% gaji, faedah kewangan yang akan anda perolehi adalah :

1. RM 2000 diberi sebagai belanja pengebumian. Ini dipanggil sebagai
khairat kematian

2. RM 5000 diberi sebagai upah haji / wang sara hidup sementara mendapat
claim insurans / surat hak tadbir kuasa

3. RM 300 000 diberi jika meninggal dunia. Wang in adalah di sebut
sebagai warisan gaji. Duit ini apabila dilaburkan di saham amanah dengan
pulangan 10%, ia memberikan pulangan RM 30 ribu setahun selamanya pada keluarga tercinta. Modal masih belum terusik. Kebajikan keluarga dan masa depan mereka masih terbela.

4. RM 300 000 jika lumpuh kekal keseluruhan. Wang ini adalah disebut
sebagai warisan gaji.Duit ini apabila dilaburkan di saham amanah dengan
pulangan 10%, ia memberikan pulangan RM 30 ribu setahun selama mana anda
hidup. Modal masih belum terusik. Kebajikan keluarga dan masa depan mereka masih terbela.

5. RM 400 000 diberi jika meninggal dunia atau lumpuh kekal disebabkan kemalangan. Wang in adalah di sebut
sebagai warisan gaji. Duit ini apabila dilaburkan di saham amanah dengan
pulangan 10%, ia memberikan pulangan RM 40 ribu setahun selama mana anda
hidup. Modal masih belum terusik. Kebajikan keluarga dan masa depan mereka masih terbela.

6. RM 50 000 diberi jika anda disah menghidap penyakit kritikal. Wang ini sebagai wang pemulihan. Apabila mengidap penyakit kronik, anda mungkin memerlukan 3 bulan – 2 tahun untuk memulihkan kembali penyakit tersebut, sebelum anda boleh sambung bekerja. Duit ini adalah sebagai wang sokongan semasa dalam pemulihan. Pelaburan bulanan akan diteruskan
secara PERCUMA sehingga anda berumur 80 tahun.

7. Simpanan Hari Tua, jika tiada tuntutan besar dibuat. Pelaburan ini
adalah pelaburan berlandas Syariah dengan pulangan purata 9 % setahun. Perkongsian 50 : 50 untuk surplus antara peserta dan Syarikat!!

Dengan tindakan anda menyimpan 10% gaji di tempat yang tepat yang memberikan manfaat kewangan yang maksimum, anda telah menjaga kebajikan kelurga anda dari bencana kewangan, sekiranya anda tidak mampu bekerja lagi.

Ramai yang CEPAT DAN BIJAK BERTINDAK AWAL!!

Hanya Tuhan saja yang tahu betapa besar rahmat apabila menerima RM setengah juta setelah di diagnosis mengidap penyakit jantung!!!

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BIAR KAMI BAYAR KOS RAWATAN HOSPITAL ANDA!!

Apa kad ini boleh buat untuk anda ??

• Pilihan Pelan dari Pelan 1 – Pelan 4 (Anda  boleh pilih mengikut kemampuan anda)
• Bertindak sebagai Gurantee Letter untuk anda!!
• KHAIRAT KEMATIAN RM 5,000 (dibayar atas kematian apa jua sebab) -  produk kad kesihatan pertama seumpamanya yang menawarkan khairat kematian !!
• SINGLE PRODUK – anda boleh mengambil produk Smart Medic 100 ini sahaja – tanpa perlu ambil (disertakan) dengan produk takaful lain. (memudahkan client disamping menjimatkan). Jika anda sudah mempunyai perlindungan insurans / takaful dan bercadang hanya ingin memiliki kad hospital ini sahaja – maka Smart Medic 100 adalah jawapannya
• Kad harian bilik (room & board) yang tinggi iaitu dari RM150 sehari sehingga RM450 sehari.
• PEMBAHARUAN TERJAMIN – sehingga umur 80 tahun !
• Shurplus sharing – pembahagian keuntungan 50 : 50
• Lebih 85 Panel hospital swasta TERPILIH & TERBAIK seluruh Malaysia
• TIADA CO INSURANCE/ CO-PAYMENT. SMART MEDIC 100 akan menanggung 100% pembelanjaan bil hospital
• Mode bayaran yang mudah – anda boleh bayar secara suku tahun, setengah tahun atau tahunan !
• Di luluskan oleh Panel Syariah MAA Takaful

        HUBUNGI KAMI DI 0162207467/0193163021(hanafi) ATAU email : hanafivibrationconsultancy@gamail.com / hanafi_vibrationagency@yahoo.com

Protect Your Business With Keyman Insurance

 Keyman or key person is the business main assets that ensure the business growth and prosperity. In layman term, if the key person dies, most likely the business will follow the same path. In a small business operation, who is the key person? The key person usually is the owner himself, or it might be the marketing sales team. If you consider blogging is a business, who is the key person? Even a fool knows that the blogger who maintains the blog is the key person.

The key to protecting the business is to insure its key persons. Andrew Carnegie once said

Take away my factories, my plants; take away my railroads, my ships, my transportation; take away my money; strip me of all these, but leave me with my people, and in two or three years I will have them all back again.

If you are running a business, how much would you insure your car? How much would you insure you factory? How much would you insure your machines? If your car is worth $50,000, I am sure you will insure the value accordingly. Some businessmen insured their factory worth million dollars but yet left themselves uninsured. This is an ironic business sense.
                                                                    
                                                                                                                                                                        
 For Malaysian businessmen, contact me if you are interested to insure your business key persons.

Sum Assured = Level Of Love



Did your spouse ever ask you this question: How much do you love me?
I think there is no simple way we can give a great answer. Is your love deeper than sea? Higher than any bird ever reach up into the sky? (with advance technology, we got space shuttles travel many light years beyond the sky limit).
If I am going to put the love level into a measurable number, I think there is no other way than using your insurance sum assured! And make sure that it is nominated to your love one! The number not only shows the monetary amount of your love, it also shows how much the love we are willing to afford.
The richest Chinese in the world, Li Ka Shing was once asked about how much wealth he will distribute to his heirs. He said it all depends on how much insurance he bought and nominated to them.
Certainly, love comes in many forms. Buying life insurance on our own life and nominate it to our spouse will ensure our love stay on forever. Some husbands say his widow will remarried. The fact is they leave no choice to the widow. Why remarry if your widow receives a lot from your insurance proceed? If she is going to remarry anyway after she got rich, I don’t think she will wait until the day you die to make the decision.



DO YOU QUALIFY TO SAVE..?

3 basic requirement of saving more money
1. Ability to earn
Our earning ability equals to our value. The amount of money we earn equals to the amount of value we add to other people.
Crux of it is we are always in control of the amount of value we want to add to others.

2. Discipline
Saving money is all about discipline. We must have the discipline to save, and also the discipline to spend.
Imagine a bank account that does not give you any withdrawal facility! Just like a piggy bank. You can only deposit money. After opening such an account, you must deposit money into it every single day. The bank officer will call you up to clear the account someday in the future because your account is too full with cash!
This is the kind of discipline we are talking about. Spend less and spend later. Save first and save more.
3. Time
It takes time to save money and accumulate wealth. The eight wonder of the world: Efffect of Compound Interest will only work if we have enough time for it.
If we do not spend the interest return of wealth, the biggest interest return will come at the later years. That means the longer the time that we let the interest to compound, the higher the interest we get at the later stage
Do you have the time to save money? Congratulations if you are very young. Sorry if you are too old or going to die soon.
Money Saved = Ability to earn x Saving rate x time
Examine the mathematic equation above. You will notice that when any one of the variable is zero, the amount of money saved = 0.
When we lost either one of the 3 basic requirement, we won’t be able to save more money. Major diseases will destroy our earning ability. Pre-mature death will take away our time to save money. If you lack the discipline to save money, it is better to engage some financial system to help you.
Even though the rate of return is medium, insurance is a perfect plan to ensure we overcome the above challenges.

Life Insurance Is CHEAP..?

There are many types of life insurance plans. If we categorize them based on the premium paid and the protection we are getting. Basically there are 3 types (refer chart):

Type A : High Protection, Low Cash Value.
Type B : Medium Protection, Medium Cash Value                         
Type C: Low Protection, High Cash Value

If there is a fortune teller who can foresee our life expectancy. If he says we can live very long, we should buy type C insurance, e.g. endowment plan. If he says our life is short, we should buy type A insurance, e.g. term life. However, in reality, who knows how long we can live? So most people buy type B insurance, e.g. whole life participating plan.

For Type B insurance, the total premium we paid will match the total cash value of the policy at year 14th-18th. That means after we had paid the insurance premium for 15 years, we can still get back all the principle money if we surrender the policy. If we are committed to show our love and resposibility to our family, buying insurance doesn’t cost much. It only cost 15 years of interest return! After 15 years, the insurance can be considered FREE!

TOP 8 REASON TO BUY LIFE INSURANCE

We spend money to buy something for the satisfaction of possessing it. But life insurance is a product we cannot see, cannot touch, and probably cannot enjoy it either in our lifetime. Why should we buy life insurance then?

Protect your wealth

This is the main reason people buy life insurance. Nobody likes to see his hard earned money all swept away in diseases related disaster. We work hard in our whole life to increase our economy value. There is no guarantee that we can enjoy a long life to realize our economy value. Only two things are certain: tax and death. When death arrive sooner that we thought, life insurance will be our wealth creation tool to instantly generate the cash we could have earned.

Show your love to your family

“We love because it’s the only true adventure.” – Nikki Giovanni

Love is indeed an adventure. Our life is an adventure too. It is full of risk. We can show our love in a thousand ways when we are still around. But when we die, how are we going to love our family? At least, life insurance can take care of our family as financial well-being.

Show that you are a responsible person

Did you ever notice that most of the victims who died in road accidents did not buy life insurance? I can say most of them have none or buy only a tiny sum assured. An irresponsible person drives recklessly and carelessly almost all the time. If you are a responsible person, you will care for others. Certainly buying adequate life insurance shows that you are responsible and trustworthy to your spouse, your children, your parents and the one you love!

Our health is deteriorating everyday

Do you know anyone who is getting healthier everyday? By the time he is 100 years old, he is at the peak of his health condition. He can live on forever! Gosh, people are getting older and this is an undeniable and unstoppable fact. Our health is deteriorating every minute. We never know the exact time a disease will strike us. Fear of illnesses motivates people to buy life insurance.

Practice the habit of forced saving

When we face the shortage of cash, withdrawing money from our life insurance policy is always the last resort. In the fear of losing the life insurance policy, we are forced to make the regular premium payment. In the long term, life insurance is a great saving tool. It forces us to save for the future, and also for the unforeseen disaster.

Funding a trust

A trust is an arrangement under which one person, called a trustee, holds legal title to property for another person, called a beneficiary. People create maintenance trust to provide regular income for family. The cheapest way to fund a trust is using life insurance. The cost of premium is only a few percentage of the trust fund we intend to create. For instance, paying premium of $1000 annually is able to get a life insurance policy worth $100,000 for a person below age 30.

Funding a business operation

An employer takes out an insurance policy insuring against loss of profits arising from the death, sickness or injury of a key employee. The beneficiary is the employer. The life insurance policy bought is known as key-person insurance. The insurance payout will be used as emergency fund for business operations.

Funding Buy-sell agreement in partnership business or corporation

Every co-owned business needs a buy-sell agreement the moment the business is formed or as soon after that as possible. Every day that value is added to the business without a plan for future transition, it increases its financial risk. What happen if one of the partners decided or forced to exit the business? The most common triggering events are dispute, death, disability and retirement. Life insurance can be used to fund purchases of the deceased shares in the event of death.

Charity

A charitable trust is a trust established for charitable purposes. Charities may take the form of charitable trusts, companies or unincorporated associations. Some wealthy entrepreneur buys insurance to fund their charitable trust.