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This latest family takaful plan by ZTMB provides guaranteed takaful coverage to its participants up to the age of 90 years. And it is available to anyone between the ages of 30 days old to 65 years old.

“It is evident that Malaysians are finding it hard to save in today’s challenging economic environment based on the fact that 50% of urban households in Malaysia do not have any form of financial savings,” said ZTMB’s Chief Executive Officer, Salim Majid Zain during the launch.

In fact, based on a survey carried out by BNM in 2015, more than 75% of Malaysians find it difficult to raise even the amount of RM1,000 in an emergency situation.

“Hence, we developed Executive20 as an ideal plan to help those looking to grow their savings whilst securing adequate protection against unfortunate events. With the annual cash payout benefit, customers can decide to use it for what truly matters to them,” added Encik Salim.

According to ZTMB, the 5 key benefits and features of Executive20 include:

• Guaranteed Takaful Coverage – Guaranteed death benefit up to age 90 and guaranteed total permanent disability (TPD) benefit up to age 75.
• Annual Cash Payout – Participants can earn annual cash payouts from the Participant Risk Investment Account (PRIA) from the end of second certificate year and annually thereafter until certificate maturity with the options to choose from 2%, 4% or 6%of the basic sum covered.
• Maturity Benefit – Upon certificate maturity, participants will receive maturity benefit equal to the Participant Investment Account (PIA) value.
• Enhanced Coverage Options – Participants have the option to optimise their protection against unexpected events such as critical illnesses (CI), death or TPD by attaching additional riders which includes payor benefit, level term and waiver of contribution for CI.
• Conversion to other Family Takaful plans – Participants are able to extend and convert their protection to other selected Zurich Takaful plans upon certificate maturity without having to present any medical evidence.

Additionally, Executive20 provides a value-added option for participants wishing to fulfil their religious aspirations (Badal Hajj, Qurban, Waqaf and Amal) under the Amanah Trust Programme which is managed by Amanah Raya Berhad.

For more information about Zurich Takaful Malaysia’s Executive20, please visit https://www.zurich.com.my/en/show-me-zurich-takaful-products/for-myself-savings/for-my-future/executive20.

(From Left to Right) –Philip Smith, Executive Director of ZTMB and Chief Executive Officer of ZIMB, Salim Majid Zain, Chief Executive Officer of ZTMB, Mukesh Dhawan, General Manager of Life Insurance, ZIMB introducing Executive20, ZTMB’s latest family takaful plan.

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After launching the 3H Cover just a little over four weeks ago, Allianz has again launched another product that will undoubtedly places itself as the insurance company that offers its customers the best protection from A to Z.

Allianz Diabetic Essential – designed for diabetics

Allianz Diabetic Essential that was launched last Friday is especially designed for diabetics. The medical plan offers those with type 2 diabetes a chance to get medical coverage and make living with diabetes less of a struggle.

“We at Allianz believe that every Malaysian out there deserves to have better medical coverage. If so many Malaysians are in need of good medical coverage, we want to offer them that lifeline,” said Joseph Gross, Chief Executive Officer of Allianz Life Insurance Malaysia Bhd. during the launch today.

With Allianz Diabetic Essential, those suffering from type 2 diabetics have the chance to get the medical coverage for themselves. It is a great plan for those who were previously ineligible for medical plans as well as those with a pre-existing plan to top up their current coverage.

According to Mr. Gross, Allianz Diabetic Essential is far more than just another product in the market for diabetics. Allianz is taking things one step further by collaborating with Advance Medical to spearhead a Diabetes Care Programme for their customers.

The customers will have a licensed physician assigned to them as their personal health advisor. The physician will evaluate their condition and address their needs before drawing up a comprehensive Diabetes Management Plan.

And to further encourage the fight against diabetes, Allianz Diabetic Essential also offers up to 40 percent discount on premiums when customers sign up, depending on their medical report. They will continue to enjoy yearly discount if they stay the course and continue to get healthy.

“I cannot stress this enough when I say that, at Allianz Life, protection is our business, but we are very much more invested in enhancing the quality of life of Malaysians our there. That is why it was so important for us to come up with products that will protect and serve Malaysians the best way we can,” added Gross.

To learn more about Allianz Diabetic Essential , visit: www.allianz.com.my/allianz-diabetic-essential

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Aimed to address the growing and a major concern of the public, the 3H Cover offers a lifeline to those experiencing the “3 Highs” – high cholesterol, high blood pressure or a high Body Mass Index (BMI).

“Up until now, it wasn’t easy to get insurance coverage if you had pre-existing conditions such as the “3 highs” as there is a chance you will be turned down outright by insurers,”said Mr. Joseph Gross,  Allianz Life Chief Executive Officer.

“We want to give Malaysians out there a second lease of life, and more importantly, much deserved protection,” added Gross.

According to Allianz Chief Sales Officer Mr. Ong Pin Hean, long hours of work, stress, unhealthy eating habits and lack of exercise have resulted in 63% of Malaysian adults suffering from at least one of the “3 Highs”.

Allianz 3H Cover is offered to anyone between the age of 20-60, including those suffering from any of the “3 highs”, with a guaranteed renewal up to the age of 85.

The plan offers a lump sum of up to RM200,000 for death, total and permanent disability, as well as 4 critical illnesses coverage of up to RM200,000, namely stroke, heart attack, kidney failure and cancer.

As an added incentive, Allianz 3H Cover  also offers a Complimentary Added Coverage where customers will receive a 50 percent increase in their death and TPD coverage and the ability to upgrade their critical illness plan to the full, comprehensive 36 critical illness plan if their “3 Highs” are back to normal.

Click here for more information about Allianz 3H Cover.

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• Are you ready for retirement?
• Have you started planning for your retirement?

Many Malaysians are still putting off retirement planning not realizing its importance and urgency. Some go on assuming that their EPF savings would be enough to cover all their expenses throughout their golden years. If you assume the same, this article may shed some surprising light on you.

Malaysians are not ready for retirement

According to a statement made by Bank Negara Malaysia in 2016, 33% Malaysians were very worried about their financial health and needs at old age as well as being unprepared for retirement. While 52% were a bit worried.

However, despite all the worry, most remain indifferent to this problem. Based on a survey carried out by BNM in 2015, more than 75% of Malaysians find it difficult to raise even the amount of RM1,000 in an emergency situation.

The reliance on EPF for your retirement

Malaysians largely are dependent on their Employees Provident Fund (EPF) to fulfill all their financial needs during their golden years. This is a dangerous as well as foolish notion.

Based on Allianz’s International Pension Papers published in 2015, their Retirement Income Adequacy (RIA) indicator – which ranked 49 countries worldwide according to their potential to serve an adequate retirement income, showed that the fund provided by the EPF was among the least adequate, ranking at number 47!

Retirement Income Adequacy (RIA) Ranking (Source Allianz International Pensions 2015)

Starting January 2017, EPF has estimated that in order for its members to lead a sustainable lifestyle up to 75 years, they need to have at least RM228,000 in their EPF savings at the age of 55. This was an increase from the previous estimation of RM196,800. Sadly, in reality, only 21% of its members achieved this basic savings amount.

The RM 228,000 amount is derived from the assumption that its members would make a monthly withdrawal of RM950 for their basic retirement needs up until the age of 75 years in line with Malaysians’ life expectancy.

Reality check

With Malaysia’s rising life expectancy (72.1 years in 2010 to 74.6 in 2015 and 74.8 in 2017), soaring healthcare costs (12.7% expected for 2017), depreciation in currency and overall increase in cost of living, how likely is the estimated RM950 to last us an entire month?

According to EPF, as of 2015, a staggering 68% of its members at the age of 54 years had a saving of RM50,000 or less. Forget about a saving lasts 20 years. EPF has revealed that 50% of its retirees exhausted their savings within 5 years of their retirement.

Here are some more shocking revelations by EPF. Over 50% of Malaysians have no financial assets. And 1 in every 3 Malaysians do not even have a savings account.

How much savings do I need for my retirement?

So how much do you really need to ensure a comfortable retirement? How much do you need to last anywhere between 10 to 20 years?  We spoke to 2 experts in the industry and this is what they have to say:

Justin Nevis

“Due to many exhausting their EPF Savings by 60, the average Malaysian needs to have at least RM1 million in EPF account by the of age 55, factoring the rising inflation rates as well,” said Justin, a Senior Financial Consultant from Kuala Lumpur.

“Two most ideal insurance plans they should have are Comprehensive Critical Illness & Medical Card, to cover the high medical fees expected as yearly medical inflation is increasing at 10 – 12% per year. Other forms of investment they should build up and secure are mutual funds. Rental from Paid up Properties and some Good Stocks which can be cashed out. All three above with frugal lifestyle should be sufficient to last till the age of 75, ” Justin added .

Adeline Ong

According to Adeline, one should have at least RM 1 million in their EPF fund and other forms of savings. “This is assuming that you already have your car and home paid off and incurring a fixed monthly expenses of a conservative RM 1,500 for the next 20 years. Although this only amounts to RM 18,000 a year and RM 360,000 for the entire 20 years, the amount after factoring in inflation will look a whole lot different,” said Adeline.

“I would also encourage everyone to invest in unit trust. It has lower charges and this allows you to separate your risk by portfolio. Unit trust also offers higher rate of returns compared to life insurance. And most importantly, one shouldn’t ignore the power of compounding interest in unit trust! Although people are always encouraging you to buy life insurance, you should know that life insurance is more for protection. You should not treat it as investment,” Adeline further elaborated.

Why it is important to start saving now?

There is no such thing as too early to start planning for your retirement. Here’s why:

1.  Cultivate a solid habit of saving – Cultivating the habit of saving is not a simple feat. If you are used to spending all of your earnings all your life, chances are, you would not find it easy to start saving at the age of 45.

2. Reaching financial independence at a younger age – The earlier you start planning and more importantly saving for retirement, the better your chances are to achieving financial independence at a younger age. Surely no one could say no to this!

3. Compounding returns means more money saved – Use your money to make more money, that’s the concept of compounding. The interest you earn from your investment is reinvested to earn more. The returns over several decades can be astounding.

Want to start planning for retirement now? Speak to some of the best advisors in the country who specialize in financial and retirement planning here.

The post Are Malaysians Saving Enough For Retirement? appeared first on iBanding Making better decisions.

Life insurance (or any kind of insurance for that matter) is not a fun subject. Don’t believe me, bring it up during a party and watch how quickly the crowd around you disappear.

Ever wondered why people dislike life insurance so much? Well based on my personal experience and observation, I would say the 2 top reasons are: One: it’s too complicated no one understands it. Two, it costs too much! Also, the fact that life insurance deals with death and sickness does not help. Too morbid! If you ask any insurance agent, they would say, “you need it”, so what is there to not understand?

Sure we can be suspicious of them but you know… they are right. Insurance (sadly) is that necessary evil we all hate to admit is important, and that we all need in order to safeguard ourselves and the ones we love against financial pitfalls. If you think life insurance is too complex, yet do not have the time to read up on it to understand why, here’s a simple guide for you. Take heed, if you fall into any one of these groups, you need life insurance.

You need life insurance if:

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1. You are a breadwinner

Breadwinner: The member of a family who earns the money that the family needs.
(Cambridge.org)

If you are the breadwinner i.e. provider for your family, you need life insurance. This is to ensure that if the most unfortunate of circumstance were to happen to you tomorrow, your spouse and children will be taken care of financially.

People say that you only need life insurance if you are the main breadwinner of your family. This is not entirely right. In this day and age, where even two-income households struggle to make ends meet, both partners should take up life insurance.

2. You have a home mortgage

Mortgage: A loan given by a bank, mortgage company or other financial institution for the purchase of a primary or investment residence.
(www.investopedia.com)

If you have a mortgage for your house, you need life insurance. This is to ensure that your family does not have to lose their home in the event of death or total permanent disability (TPD). Nothing can be more tragic than your loved ones having to move out of their home during the time of their bereavement.

Another option that you can choose is MRTA (Mortgage Reducing Term Assurance) or MLTA (Mortgage Level Term Assurance). Although these options are not compulsory during the application for a mortgage, it is highly recommended especially if you do not already have an adequate life and medical plan.

3. You have aging parents who rely on you

You may be single and never plan on getting married. Nevertheless, you may still have others who rely on you financially. Such as aging parents or a special-needs sibling.

Your beneficiaries do not always have to be your spouse or your children. In the Asian culture is it a norm for adult children to care for their parents. In such a case, you should make sure that your parents or other dependents can continue to receive the care that they need should you pass on prematurely.

4. You are a business owner

If you are a business owner, your family may end up with the business debts when you die. Having a life insurance ensures that your beneficiaries are not burdened by these debts. The pay-out from your life insurance plan can be used to pay off your debtors and estate taxes.

If you are in a partnership, a specialized life insurance called the Key man or key person insurance can help surviving business partners keep the business afloat with the death benefit. While a buy-sell arrangement allows the business partners to buy out your share when you die.

5. You have unpaid loans and debts

Have you thought about what would happen to your unpaid credit card debts, your personal loan or car loan when you die? Many don’t. And those who do usually assume that these debts would be cancelled. Not quite true.

What happens to the loan or debt depends on several factors, which includes: Is it a secure or unsecured loan? Is there a guarantor? Is there any possession in your estate left behind when you die.

Secured loan : a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan (www.wikipedia.org).

Unsecured loan: a loan that is issued and supported only by the borrower’s creditworthiness, rather than by any type of collateral. (www.investopedia.com)

Depending on the factors above, banks or creditors have the following options:

a. give the beneficiaries the option to take over the loans and transfer the assets to their names
b. go after the guarantor who will have to continue with the loan
c. sue the estate of the deceased to recover the amount owed to them

So having a life insurance can help pay off all your loans and debts either secured or unsecured so that those you leave behind do not need to be burdened by them.

Still unsure if you need life insurance? We recommend doing some research before making a decision. Speak to several trusted insurance or Takaful agents if you need more information about life insurance. You can find reliable agent on iBanding’s directory here.

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So what causes your life insurance premium to go UP?

Young vs. Old

1. Age

The fundamental rule here is: the higher the risk, the more costly the premium. For instance, a 21 year old has a lower health risk compared to a 55 year old. And since the premium rates are determined at the time of purchase, it is advisable to purchase them when you are still young. But how young?

If you are a male, it is most likely you will be getting married someday, if not already, and have a family who depends on you. Therefore life insurance becomes a necessity to you. This does not mean that you have to purchase one at the age of 22. But once you are married, it becomes crucial for you to have one, especially if you are the sole breadwinner in the family. Here it becomes not only critical, but it is also a smart move to purchase one as soon as you can, so that you can lower your premium cost.

However, be aware that you have clearly understood your policy and it’s premium rate structure. As it is not uncommon for insurers to increase the premium rate over time. Shop around and compare plans and quotes.

High risk sports and occupation

2. Lifestyle choice and occupation

If you are an adrenaline junkie who jumps off cliffs for fun, you will no doubt pay a higher premium on your life policy. Simply because you are perceived to carry more risk as compared to someone who is not involved in such high-risked activities. Similarly, if your occupation exposes you to risks that may endanger your life, such as a race car driver or a wildlife photographer, you too could be paying a higher insurance premium.

If you have a high risk occupation, it may be smart to shop around before purchasing your life insurance. As some insurers are less stringent than others in treating these high risk occupations and hobbies. But if high-risk sports and activities are your thing, you may just have to put up with the higher premium, if you are not willing to give up your hobbies.

Family medical history

3. Family medical history

One of the information that you have to disclose when purchasing a life insurance is your family medical history. Many chronic illnesses are hereditary, such as cancer, diabetes, and cardiovascular diseases. The insurance company uses your family history to gauge your risk in developing certain health conditions. Therefore, your premium rate will be higher if your family has a history of one or more of these illnesses.

Having to pay higher premium due to your family medical history isn’t something that is within your control. However, having one means that more than anything, you need a life insurance or medical plan urgently. So if you have a family medical history, you should consider purchasing a life plan (if needed) or medical policy while you are still young. This allows you to not only protect yourself at an early age, but also to lower your premium rate.

Smoker vs. Non Smoker

4. Smoking

Smokers pay higher premium than non smokers. The reason for this is because of the many health conditions related to smoking, such as:

• Cancer
• Stroke
• Heart disease
• Hypertension
• Chronic Obstructive Pulmonary Disease (COPD)

Smokers have a higher risk at developing these health issues and generally have a shorter life span than non-smokers. Insurance companies make no distinction between a social smoker or someone who smokes a pack a day. To them, a smoker is a smoker.

Insurance companies recognize a non-smoker as someone who is cigarette-free for at least 12 months. So to be eligible for a lower premium rate as a non-smoker, you need to quit, and stay quit for a whole year. This isn’t easy at all, but we all know the benefits of not smoking. Not only you save on your premium cost, you also save loads on cigarette while preserving your health!

Pre-existing health condition

5. Pre-existing health condition

Pre-existing health condition means any illness that you may have or have had before applying for an insurance plan. For instance if you have survived cancer, or have a history of heart problems, or if you suffer from diabetes. The risks associated with someone with pre-existing condition is much higher, therefore making the premium higher. Also, having a pre-existing health condition makes it harder for you to find an insurer willing to offer a life plan. And because fewer are willing to do so and choices become limited, this too causes premium price to go up.

So again, this is where buying a life insurance at a younger age is beneficial. As the risk of developing health conditions is lower.

Substance abuse

6. Substance abuse

Substances such as alcohol, marijuana and heroin are detrimental to human health. So if you have a history of substance abuse, you will be considered high risk. Insurance companies will assess the seriousness of your history and will price the policy according. If you are still consuming these substances, insurance companies may not be willing to cover you.

Premium rate also depends on the type of life insurance policy. The length of the policy and the coverage amount will increase the premium cost. A 10 year term policy generally will be cheaper than a 40 year term policy. This is because the risk of death occurring during a shorter period of time is lower. Term life policies are usually cheaper than whole life policy. The total coverage amount also determines the premium rate. The higher the coverage amount, the more you will have to pay in premium.

To ensure that you get the best quotes, make sure to take your time and shop around. Life insurance is a long term commitment, so you should find the best one for you. Do not settle with speaking to just one agent, instead talk to several representing different insurance companies. Take your time to do your own researches. If you need to speak to a reliable insurance agent, find one that is nearest to you on this online agent directory. Like our Facebook page too so you can get more tips on how you can save money on insurance.

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