Insurance plans for every life stage

July 31, 2014

Insurance Protection Gives You Plan B
Life is a chock-full of unexpected events and whilst some may be pleasant; there will definitely be those which make you wish you had Plan B. That’s where the right kind of insurance comes in. If you have purchased the necessary policies, you will be afforded the peace of mind of knowing you already have an escape route. But having the foresight to know what kind of insurance policy you need and when to purchase it is key.
While we have segmented when you should get a specific policy, these are just guidelines – they’re not set in stone – so do feel free to make the ‘executive decision’ on which policies to purchase as and when necessary. Below is a brief overview of the insurance policies that you should be getting at specific points in life:

Starting Your First Job
Priority: Establishing a career, setting financial goals, including adequate medical and accident coverage

Medical and Health Insurance
How cheap (or expensive) is basic healthcare in Malaysia? With the recent allowance for medical practitioners to raise medical fees and charges, the simple fact remains that for most Malaysians, healthcare is hard to afford without access to a medical card – which allows you to claim for costly hospitalisation and surgical fees.
If you have been insured under your parents’ medical insurance policy all these years (usually up to a maximum of 23 years old), you’ll need to fork out some cash for your own after your coverage has expired. If you have a confirmed employment, you will usually obtain one through your employer.

Motor Insurance
Malaysia currently has the dubious honour of being one of the top 25 countries most dangerous to road users, with an average of 30 deaths for every 100,000 individuals – the road accident rate in Malaysia is really quite alarming! Not only that, because of the often clogged roads and frantic driving in urban cities such as Kuala Lumpur, many drivers have succumbed to road rage – just ask our good friend Kiki below:
The point is not to scare you from ever driving again, but to emphasize the importance of having comprehensive insurance protection for your vehicle, be it a car or motorbike. For a new vehicle, the insured value will be the purchase price while for other vehicles, the insured value is the market value of the vehicle at the point you apply for the insurance policy.

Personal Accident Insurance
If you rely purely on your monthly salary to support your daily expenses, you should get yourself a personal accident insurance policy – it will provide you with financial compensation in the event of injury, disability or death caused by violent, accidental, external and visible events. That is unless you are working in a high risk environment that has already provided you with a specialised PA policy i.e. law enforcement, pilot, military, and divers.
While employers traditionally provide you with PA insurance policy, some people may prefer the increased coverage provided by buying private policies to supplement those of their employers. This is especially important when you have dependents relaying on your income.

Starting a Family
Priority: Pay for mortgage loans, protection for your spouse, and financial security for your child’s education

Term Life Insurance
A term life insurance, similar to your personal accident insurance, is meant to replace your income for those relying on it should something unfortunate were to happen resulting in your death or permanent disablement. Again, having this policy is very important when you have dependents such as children and a spouse who is not employed.
Once your children are all grown up and can support themselves financially, a term life insurance won’t be too necessary.

Critical Illness Insurance
Often times policyholders will supplement a term life insurance policy with a critical illness rider or stand-alone policy. This policy gives you a lump sum benefit upon diagnosis of any of the 36 major diseases and illnesses including cancer, heart attack, stroke, diabetes including diseases often associated with old age such as Alzheimer’s disease and Parkinson’s disease.

Fire/Homeowner’s insurance
If you own or plan to own a home, you will need a home and fire insurance – this cannot be negotiated. A homeowner’s insurance will insure everything from the home itself to your belongings to someone getting injured on your property.
You will also be covered from natural disasters such as flooding and landslides. A home is potentially the biggest investment you will ever make, and many struggle everyday to afford to have a roof over their heads, so protecting your home should be a top priority.
In Malaysia, you can either take up a MRTA or MLTA insurance to insure both your family and mortgage. Of course, you will have no need for one if you decide to put your home up for sale, go back to renting, or make alternative living arrangements – move in back with the parents, maybe?

Getting Ready For Retirement
Priority: Secure regular income for retired life, update medical and critical illness coverage

Retirement Insurance
As you slowly move into this stage in life, your financial woes will mostly relate to maintaining a plan to ensure a steady flow of funds with the absence of paid employment.
Once you reach your late 30s, sign yourself up for a retirement insurance plan, also known as a retirement annuity plan. You receive a guaranteed level of income each year that can be paid out monthly. For some, their Employees Provident Fund(EPF) contributions may be enough to tide them over through their golden years, but on average, most people would have run out of funds within only 3 years.
As an example, you can start by paying a RM3000 premium per year from the age of 40 until the year you retire. Your policy will then be able to pay out a higher amount based of say RM7000 per year for 10 to 30 years after you retire.
With a retirement annuity, unlike a Private Retirement Scheme (PRS), which requires you to produce a GP (Grand of Probate) or LA (Letter of Estate Administration) to unfreeze and withdraw money in the event of your death, you will only need to make a nomination to pass on your wealth to your beneficiaries.

Know your options
The best thing to do before deciding on a insurance policy is to get yourself educated – get quotes from different insurers, read the nitty-gritty details of your policy, and whenever in doubt, ask your insurance agent questions.

This was brought you by Chester John from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

Save money on your gym membership!

July 24, 2014

So before you start that workout, work your way through these tips first.

 

By Balkish Rosly

The first thing you need to remember is that gym centres need members to operate.

So naturally, their sales team will lure you in with all kinds of freebies, facilities, personal trainers, and the ever popular “normal price for personal training sessions is RM xxx for 2 sessions, but because today is my sister’s cousin’s auntie’s birthday, I can persuade them to give you 3 extra sessions!” tactics that land them those high commissions.

So before you start that workout, work your way through these tips first:

Free Trial Period (7 days or more!)
Almost all gym centres offer at least a 7-day trial period so grab them! While you’re on the trial period, get comfortable with the personal trainers and consultants, because they can help you score a cheaper membership fee (and more freebies!).

Furthermore, the free trial also give you time to decide whether or not you can actually commit to the gym (if a week is difficult, an entire year seems unlikely).

Time is of the essence (Join at the end of the month!)

Another thing to keep in mind is the gym’s membership goals.

Salespeople at gyms and fitness clubs often have a quota of how many new members they have to sign on each month. Usually at the end of the month, these gyms and fitness clubs will be more than willing to work some discounted rates for you just so that they can reach their goals.

Try asking around during the last two weeks of the month and flex your negotiation muscles to get the best price.

Price VS. Pride (Negotiate, Bargain, Haggle!)

Before you join a gym, don’t just settle for their on-the-flyer price. Usually, the initial payment will include:

Registration Fee + Administration Fee + First and Last Months’ Membership Fees

For example:
RM 100 (Reg. Fee) + RM 109 (Admin. Fee) + [RM 152+RM 152] (First and Last Months’ Fees)= RM 513!

So before you say yes to the membership, try to negotiate a cheaper price. Get them to waive the registration fee or administration fee, prepare good comebacks like “My friend was here a month ago and she was offered a cheaper price!” and try to get as many freebies as possible. If you aren’t good at negotiating, then bring along someone who is an expert.

If you need a personal trainer, ask for all the necessary information before paying (like do they have qualifications, why is the rate for this particular trainer different than the others, etc).

Travel & Convenience (Save Money on petrol and book the nearest gym!)

It’s great to have a car to drive to and from the gym, but Save Money on petrol by choosing the gym nearest to you whenever possible. You don’t want to be spending RM 10 extra on petrol every week just for your gym trips, do you?

Plus, the further away you are from the gym, the less motivated you will be to get there! Additionally, make sure that the gym provides parking spaces/free parking for several hours for its members to save even more money.

Say no to upfront lump sum paments!
Most gym centres offer cheaper prices for those who are willing to commit to a long term contract (usually a minimum of 12 months). But here’s the catch: you will have to pay a hefty upfront lump sum to get the discount.

Here’s an example:
Trisha’s gym membership fee: RM 100 (normal price)
Payment method: Monthly
12-year contract accumulation: RM 1,200
Trisha can get RM 20 discount on the same membership fee but only if she pays a lump sum and not monthly :
Discounted membership fee: RM 80
Payment method: lump sum for a year
12-year contract accumulation: RM 960

It might sound like a good deal, but before you commit to a contract like the above, consider the consequences: you might lose a lot of money if you stop going to the gym after a few months.

Hold It (Think Again!)
If you have a crazy, unpredictable work schedule or are always on the go and traveling, then having to pay for a whole month or year is just not worth it. Fortunately, if you know your schedule, then the best way to save some money is by calling up your gym or fitness center and requesting that your membership be put on hold for that month.

Of course, you need to do this in advance. Last but not least, honesty is the best policy. Be honest to yourself, your bank account, and the gym about your budget. If you can’t afford the gym, don’t force it out on credit cards, loans, or increase your debt in any form.

Balkish Rosly is an Investigative Journalist of SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.

Is your salary enough to afford your first car?

July 22, 2014

So how much do you need to earn in order to afford your first car? Read on to find out!

 

By Joshua Ong

So you’ve landed that first job. Or maybe it’s that recent promotion at the first job that made you wonder if it was finally time to ditch the bus for good and buy yourself a snazzy set of wheels. Cars in Malaysia aren’t cheap as we’re all aware but just how much is it all going to set you back? And can you afford it on your monthly wage?

Owning a car is more than just the monthly repayment and no matter how good the deal looks on the car dealer’s pamphlet – calculating affordability is trickier than you think. Thankfully, with a significant amount of research, we’ve compiled all the costs associated with buying your very first car into this handy dandy article.

So how much do you need to earn in order to afford your first car? Read on to find out!

What do you need to have before you buy your first car?

Before we break down the individual costs, we should probably dive into the prerequisites involved with buying your first set of wheels. Unfortunately and in some cases thankfully, one cannot simply walk into just any auto dealership in Malaysia and purchase a car within the same day.

There are several documents and forms of identification that you will need to have in your possession before you buy your first car, especially if you plan on taking up a car loan.
So here’s what you will need to have before you walk into any auto dealership to buy your first car.

For general registration, you will need
1: A Malaysian Driver’s License (Competent Driving License) & Valid Malaysian NRIC (myKad)
2: Passport with valid Visa (For non-Malaysians only)
If you intend to take up a car loan, you will need
1: Official Payslips dating back at least 6 months (for salaried employees)
2: Official company accounting slips (for business owners)
3: EA Form or EPF statement (required by some banks)
4: Guarantor (required by some banks)

What are the costs involved with buying your first car


Example: The Perodua Myvi

Fact: the Perodua Myvi has been the best selling car in Malaysia from 2006 to 2013

 Question: Why do Malaysians seem to absolutely adore the Perodua Myvi?

The Perodua Myvi is the quintessential perfect car for first time car owners. The Myvi is not just extremely affordable (when compared to other name brands) but also easy to handle and economical on fuel.

A brand new 2014 Perodua Myvi 1.3L EZI  will sell for RM44,936.45 in Peninsular Malaysia.

 Conversely, the price of a used 2009 or 2010 Perodua Myvi 1.3L EZI will cost you around RM31,000 (according to motortrader.com.my). As expected, the Perodua Myvi actually carries a fairly decent resale value.
 
For the purpose of illustrating the cost of buying your first car, we’ve decided to use the Perodua Myvi as our automobile of choice. Cost of ownership can be split into two distinct categories; established costs and volatile costs.

Established costs represent costs that are “set in stone” and you can expect to bear such as monthly car loan repayments, road tax etc. Volatile costs represent costs that may differ depending on the situation such as petrol consumption etc.

The established costs
1: The downpayment 
Most banks will require a minimum downpayment of at least 10% of the total cost. However, some banks might offer special deals with 0% downpayment, though this will ultimately result in higher interest payments for you. When it comes to downpayments, always remember that more equals less. The higher the downpayment, the lower the interest charges.
Brand new 2014 Perodua Myvi 1.3L EZI
Minimum downpayment of 10% x RM44,936.45 = RM4,494.45
Used 2009 or 2010 Perodua Myvi 1.3L EZI
Minimum downpayment of 10% x RM31,000 = RM3,100

2: The subsequent monthly repayments
Banks in Malaysia will typically offer car loans for terms of either 5 years or 9 years. Choosing a 9 year term will mean a lower monthly repayment, though with more interest. Conversely, taking up a 5 year term will slap you with a higher monthly repayment but with less interest.
Given the wide variety of different car loans offered by banks in the market, sifting through the details of every single one is (suffice to say) utterly exhausting. In fact, the thought of filling up a mock excel sheet filled with interest rates already brings a tear to this author’s eye. So instead of trekking through each and every bank, you could instead use a compare website like RinggitPlus.
Using the compare tool on RinggitPlus, we can observe that the Public Bank Aitab Hire Purchase-i offers the lowest interest rate in the market for both new and used cars (but then, always remember that the rate you get will depend also on your credit rating and the type/make of car you are purchasing). So how much is the monthly repayment?
Brand new 2014 Perodua Myvi 1.3L EZI
Loan of (RM44,936.45 – RM4,494.45 downpayment = RM40,442) = RM458.72 every month for nine years
Used 2009 or 2010 Perodua Myvi 1.3L EZI
Loan of (RM31,000 – RM3,100 downpayment = RM27,900) = RM337.38 every month for nine years
Disclaimer: The figures above reflect nine year loans, if you want to find out the monthly repayment for a five year loan, you are more than welcome to check out the RinggitPlus car loan compare tool.

3: Car insurance
Car insurance premiums will vary from person to person depending on a variety of factors such as engine capacity etc. In the case of our first time car owner, the cost of insurance might be a tad bit steep. However, if he/she manages to survive through an entire year without making a claim then he/she can expect a drop in the cost of the premium (no claim discount).
If your windshield is still a little foggy regarding car insurance, then you can check out our car insurance buying guide.
Brand new 2014 Perodua Myvi 1.3L EZI
Monthly premium of RM90
Used 2009 or 2010 Perodua Myvi 1.3L EZI
Monthly premium of RM85

4: Road Tax
Police road blocks are everywhere these days, which means that if you skip out on your road tax payment then you absolutely will get B-U-S-T-E-D. Thankfully though, road tax is Malaysia is relatively cheap when compared to our neighbours in the south, which means that you have absolutely no excuse for missing your payment.
Brand new 2014 Perodua Myvi 1.3L EZI and Used 2009 or 2010 Perodua Myvi 1.3L EZI
Annual road tax of RM70 (1300cc car) = RM5.83 per month

Total Established Costs:
The Formula:
Downpayment + monthly repayment + car insurance premium + road tax
Total established costs for a brand new 2014 Perodua Myvi 1.3L EZI =
RM4,494.45 downpayment + RM554.55 monthly (nine year loan)
Total established costs for a used 2009 or 2010 Perodua Myvi 1.3L EZI =
RM3,100 downpayment + RM428.21 monthly (nine year loan)

The volatile costs
1: Petrol
Calculating the exact cost of petrol for an entire month can be somewhat challenging. Your expected monthly petrol costs will depend directly on your travelling habits. If you frequently spend your weekends blazing through the Klang Valley like an episode of “Speed Racer”, then you can definitely expect a decked out petrol bill.
According to Perodua, the Myvi 1.3L EZI carries a fuel economy of 17 kilometers per liter (RON95 costs RM2.10 per liter). Assuming that you travel everyday from Subang to Bangsar for work, you can expect to travel an estimated 40 kilometers everyday (round trip). Discounting the cost of getting stuck in bad traffic, then you can expect a daily petrol cost of approximately RM5 (at minimum).
However, a traffic jam free Malaysia is an elusive dream. So for the purpose of realism, we shall assume a daily petrol cost of RM8.
Minimum monthly petrol cost for brand new 2014 Perodua Myvi 1.3L EZI and Used 2009 or 2010 Perodua Myvi 1.3L EZI = RM8 x 30 days = RM240 per month.
Disclaimer: The figure above is an approximate assumed amount. Of course this will vary with usage.
 
2: Car Repairs
Car accidents can happen at any time (or place) even if you’re an ultra safe driver. While the fault may not always be yours (or so you tell yourself), the cost of the damages could very well be yours to bear. But wait, I have car insurance, aren’t I protected from any damage arising from accidents?
Unfortunately, making a car insurance claim (even for a tiny little dent) will only make your subsequent car insurance premiums more expensive. Sorry to burst your bubble but car insurance companies are not in it for your welfare (its a business not a charity). So why spike up your insurance premium if the damage is only cosmetic?
Determining the “person at fault” at an accident scene is tricky business and in most cases, ends up becoming a meaningless blame game of “who hit who first” or “my lane, my right of way”. Think that it can’t get any worse? Well, what if the perpetrator who just hit your car decided to scoot away from the crime scene like a bat out of hell? Are you going to pursue and re-enact the car chase scene from “Ronin’?
But are car repairs limited to just accidents? No! There is always the chance that your car can break down at any time, especially if you are driving a used car with a heavy amount of mileage. Fortunately, brand new cars usually come with at least 3 years of warranty against manufacturing defects such as faulty batteries etc.
For the very reasons listed above, it is always advisable to tuck away a small sum of money every month for “emergency car repairs”. For starters, RM100 a month should suffice (unless you plan on getting rear-ended on a daily basis). If you manage to keep your “hot wheels” out of trouble for at least a year, then you’ll have RM1,200 nestled safely in the bank, which should be more than enough to pay for broken windows, minor re-sprays, small dents, busted batteries and every other adventure you find yourself in.
Monthly savings for “emergency car repairs” (Optional but highly recommended)
= RM100 per month
 
3: Car Maintenance
Keeping your car clean and shiny is as easy as breathing (okay, maybe not that easy but you get the point). All you really need to “return your wheels to factory condition” is a bucket of water, soap, a sponge, a dry cloth, effort and a set of strong wrists. Unless you have a weird fetish for dirty cars, then keeping your car clean should be on your list of priorities. A medium sized bottle of car soap costing RM10 will probably last you for up to 30 washes. Assuming that you wash you car twice a week, this translates into a 15 week supply.
Washing aside, it is also in good practice to wax your car at least once every 2 weeks. Applying wax to your car creates a protective layer that works towards repelling dirt and water. A bottle of car wax from brands like Soft 99 will cost around RM40. Each bottle should last you around 3 to 5 months depending on how many layers you apply each time.
Car maintenance cost
= car soap + car wax
= RM10 + RM40
= RM50 (3 months)
= RM17 per month (rounded)
 
4: Parking
Want to escape the smouldering heat of El Nino? Then why not visit one of the over 40 air-conditioned malls located within the Klang Valley. Unfortunately, some malls (like the ones we touched on in a previous article) come with insanely expensive rates that will cost more than your lunch.
Thankfully though, there are other the malls within the Klang Valley that do offer fairly reasonable rates for weekend parking. For example, Sunway Pyramid has a weekend rate of RM3 for the first 2 hours and RM1 for every subsequent hour. Assuming that the average person spent approximately 6 hours every week at a mall with parking rates similar to Sunway Pyramid, then this would work out to a cost of RM7 every week.
Parking charges
= RM7 x 4 weeks = RM28 per month
Disclaimer: For obvious simplicity sake, this figure does not include parking for home and work.

Total Volatile Costs (according to estimates):
The Formula:
petrol + car repair savings (optional) + car maintenance cost  + parking charges =
RM385 per month

What is the monthly cost of owning a car?
The Formula: Monthly Costs (after downpayment) =
monthly repayment + car insurance premium + road tax + petrol + car repair savings (optional) + car maintenance cost + parking charges
Cost of owning a Perodua Myvi
Monthly cost of owning a brand new 2014 Perodua Myvi 1.3L EZI =
RM554.55 monthly (nine year loan) + RM385 = RM939.55
Monthly cost of owning a used 2009 or 2010 Perodua Myvi 1.3L EZI =
RM428.21 monthly (nine year loan) + RM385 = RM813.21
 
How much do I need to earn every month to afford my first car?
The Formula: Monthly cost of owning a car + L =
monthly repayment + car insurance premium + road tax + petrol + car accident savings (optional) + car repair savings (optional) + parking + L
Minimum income required to own a Perodua Myvi
Minimum income required to own a brand new 2014 Perodua Myvi 1.3L EZI
= RM939.55 + L
Minimum income required to own a used 2009 or 2010 Perodua Myvi 1.3L EZI
= RM813.21 + L
I’m lost….What’s “L”??
“L” represents your cost of living. To put it simply, “L” encompasses your entire monthly living expenses such as your rent, food, entertainment etc. If you want to find out how much you need to earn in order to afford your first car, simply add your living expenses to either of the two figures above.
What do you think about the calculations used in this article? Are they too high? or too low? Is there anything you want us to add? Leave a comment below expressing your grief/happiness.

Joshua Ong is an Investigative Journalist of SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.

Amazon launches unlimited e-book subscription plan

Amazon launches unlimited e-book subscription plan

NEW YORK, July 19: US online giant Amazon unveiled a Netflix-style subscription plan Friday for unlimited access to e-books, a move which could shake up the world of publishing.

 

The $9.99 per month Kindle Unlimited program offers access to some 600,000 titles in the Amazon Kindle format.

 

Subscribers will be able to access the books on Amazon’s Kindle tablets, as well as other devices with a Kindle app, including iPads and iPhones, Windows devices and Android-powered mobile gadgets.

 

Amazon is using a model made popular by Netflix for films and television programs, but also by services such as Spotify for music.

 

Colin Gillis at BGC Partners said the move to subscriptions is part of a trend toward “a ‘rent, not own’ society. We see it with music, with movies. It makes sense that they would do that with books.”

 

James McQuivey, an analyst at Forrester Research, said Amazon is unlikely to have many new or best-selling books at the moment because it does not have the rights to include them in subscription packages.

 

Amazon will initially have many self-published books and titles from small and independent publishers but could use its market power to force the hand of major publishers, he said.

 

“The subscription idea is very popular with consumers for digital content,” McQuivey told AFP.

 

“Amazon sees this. And they could wait for publishers to come in or they can try to make it happen and control it.”

 

Publishers meanwhile are resisting the subscription model because it effectively cuts the price of books and royalties paid.

 

“If you’re a publisher and a big one, you don’t want the world to think the new Dean Koontz novel is free,” McQuivey said. “You’re already mad that Amazon discounts it. The big publishers don’t want the price pressures.”

 

Despite this, Amazon knows that some of its readers will be receptive to this model, said McQuivey.

“Amazon knows its customers,” the analyst said. “They know if you read a mystery every week, they know whether they are in a position to make you an offer you can’t refuse.”

 

He noted that this could be a great offer for a segment of Amazon customers but not others.

 

“If you’re a one book a month reader and a best seller person, this isn’t going to work for you,” McQuivey said.

 

Roger Kay, analyst at Endpoint Technologies Associates, said the new Amazon system has the potential to change the economic model for publishers and authors, because the price of $9.99 is roughly the cost of a single e-book.

 

“If I’m a big reader, I like it,” Kay told AFP.

 

“And then I begin to wonder what happens to the authors. They get paid usually with a percentage of the sales. So this further destroys the economic model that has been feeding the authors.”

 

The Kindle Unlimited service will also include audio books available through the Audible service.

 

The service is being launched for US customers, with other countries likely to follow.

 

In the book segment, similar services are offered by Scribd, which offers some 400,000 titles for $8.99 per month, and Oyster, which charges $9.95 for access to its catalogue of 500,000 books.

- AFP    19 July 2014

Personal accident insurance explained

July 18, 2014

 

By Balkish Rosly

With so many different types of insurance policies out there, it can get a little confusing when it comes to telling them apart. In this article, we attempt to explain what personal accident insurance is, as well as how it works, where you can get it, how much does it cost and more.

Personal Accident (PA) Insurance is an annual policy which provides lump-sum compensation in the event of injuries, disability or death caused solely by violent, accidental, external and visible events.
Unlike life insurance (which covers any type of death), PA Insurance is completely policy dependent.

 It pays a benefit due to death which helps protect loved ones against the inevitable devastating loss of income that will occur if a member dies unexpectedly.

Premiums of PA insurance policies are also generally cheaper than Life Insurance, due to a more restrictive policy. Purchasing PA Insurance is a good way to protect your family and dependents, however, because it does not cover death by natural causes, if such things concern you it might be a good idea to augment it with a Life Insurance policy.

PA Insurance can either be taken for yourself or a group policy for your family. 24-hour worldwide coverage is also provided.

Where can I get a PA Insurance policy?
In the past in Malaysia, PA Insurance products were purchased directly from insurance companies, but these days they underwrite policies which are then distributed by the big banks (many of them related companies), Pos Malaysia and even telecommunication companies like Maxis, Digi, Celcom and the Tune Group.

How much does it cost?
The cost of a PA Insurance policy depends on several factors such as the length of coverage, compensation, additional coverage on exclusion, age (premium can rise with age), occupation (Class 3 jobs have a higher risk than Class 1 and 2), what activities you normally do, health history and number of people who benefit.

Who can apply for PA Insurance?
Most people are eligible to apply for PA Insurance. However, some details such may differ depending on the policy.

People who aren’t eligible to be covered under PA Insurance are those with high career risk i.e: the police, military and law enforcement officers, divers, pilots or crew members, aircraft testers, racing drivers, fishermen. People who fall under this category usually have their employer take a special form of PA insurance for them. The payment of compensation to the employees is at the discretion of the employer.

Insurance companies typically categorise occupations or professions into 3 main classes:
Class 1: Professions and occupations involving indoor work and of a non-hazardous nature like accountants, administrators, architects, doctors, indoor sales staff, clerks and the like.

Class 2: Professions and occupations involving indoor work with occasional manual work or involving some outdoor work like bakers, hairdressers, waiters, outdoor sales staff, electronic engineers, civil engineers and the like.

Class 3: Professions and occupations involving light manual work or the use of tools or light machinery (other than wood working machinery), like butchers (no slaughtering), fishmongers, motor mechanics, kitchen workers, hawkers and the like.

The premium payment will be priced according to the classes of occupation. Class 3 has the highest occupation accident risk, followed by Class 2 and Class 1. As such, the higher benefit coverage personal accident plans (which normally covers RM500,000 for accidental death or permanent disablement) will not cover Class 3.

Balkish Rosly is an Investigative Journalist of SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.

What you need to know about easy payment plans

July 18, 2014

Easy Payment Plan allows you to buy things with a swipe of your credit card and repay the amount by installments - meaning that you will not have to worry about not being able to settle the full amount owed at the end of the month.

 

By Denise Chan

An Easy Payment Plan or EPP allows you to own that fridge you always wanted without having to pay the whopping RM3,000 price tag that comes along with it. Instead, you have the luxury of spreading the cost of that fridge over the next few months or years at either very low or sometimes 0% interest. EPP is usually offered by most banks’ credit cards with repayment periods typically ranging between 3 and 36 months.

This allows you to buy things with a swipe of your credit card and repay the amount by installments – meaning that you will not have to worry about not being able to settle the full amount owed at the end of the month. Paying your bills late could lead to the bank slamming you with high interest charges (normally 15% to 18% p.a.) on your outstanding balance each month.

You could actually think of EPP as a short term, interest-free personal loan – you can also save the money you would have used upfront to spend by putting it into an interest bearing account.

How an EPP saves you money
Let’s take a look at an example:
Darren wants to buy a new gaming laptop for himself which will cost himRM5,000 – a little costly for the average joe but hey, he’s a serious gamer! He has several payment options at his disposal:

Cash or debit card
If he makes the purchase using cash, he will definitely get the laptop, but a whopping RM5,000 will be deducted from his bank account instantly.

Credit card
If he makes the purchase by credit card, the result is similar except that he would have to fork out the RM5,000 when he pays his bill at the end of the month.

EPP
Making the purchase by committing to a 0% EPP with a 12-month tenure, will lead to his debt being spread over the 12-month period and Darren will only need to pay RM5,000/12 months =RM416.67 monthly.

So instead of paying RM5,000 in one go, Darren can put the excessive cash into a savings account to earn some interest; He can get up to 2%p.a. in interest, and if he’s being clever he can do staggered multiple tenure FD deposits and earn well over 3% p.a. !

But take note!

Let’s take a look at some of the things you should take note of if you’re planning to use a 0% Easy Payment Plan to make a purchase.

Makes sure it really is “0%”
It is actually fairly common for consumers to be charged an extra fee (normally around 3-4%) by the merchant when opting for a 0% Easy Payment Plan. Most will tell you so, however you should make it a point to ask if such a cost exists.

For example, an extra 4% on the RM5,000 laptop would cost you RM300. It is by no means an amount that can simply be “shrugged off” and this in turn defeats the whole purpose of engaging in a 0% interest repayment plan!

Missed or late payments
Banks and merchants rarely advertise this about their 0% EPP but if you miss a payment or pay the installment later than the due dates, the bank will cancel the 0%, and charge you with the normal interest similar to the credit cards instead.

You could put yourself in danger of getting into more debt that you can afford. So, before you engage in this easy payment plan, be sure to have a look on the terms and conditions carefully.

Minimum spending
Most banks have a minimum spending requirement to qualify for their 0% Easy Payment Plan. Check what these minimums are so as not to be caught thinking you could use an easy payment plan when you actually can’t.

Purchase from a participating merchant
Look for stickers or signs on retail outlets indicating that they offer 0% Easy Payment Plans for your credit cards. Alternatively, look up the websites of your banks for the list of participating merchants offering 0% Easy Payment Plans.

This was brought you by Denise Chan from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

How your credit score affects your loan approval

July 16, 2014

Loans are definitely one of life’s necessary evils but if used well, could help you afford the things you need to live a full life. Always remember to take note of your credit score because this will make or break your loan application.

 

By Denise Chan

You’ve probably heard it before but it bears repeating: banks aren’t in the business of lending you money for their health or your happiness. They do it to make money. At the end of the day, it’s a business like any other so their focus is essentially to make a profit. A large part of how they make money is on the interest they charge on loans (car loans,home loans, personal loans etc.) because the interest is higher than the interest they pay on depositors’ accounts.

So why take a loan if you’re going to have to pay it back with interest? Well, while paying interest may not seem to be a great financial move at first glance – in most instances, it really is a small price to pay for using someone else’s money! Imagine having to save all of the money you needed in order to buy a house. We wouldn’t be able to buy houses until we retired (if ever)!

Every loan we take puts us under an obligation to pay the amount back over time. Banks keep track of this and judge us based on our credit records. If you don’t miss payments on your loan, it is likely that your credit score will increase. However should you fail, there is a chance that your credit score could be affected. How much could it be affected by? The truth is, it really depends – but know this; your payment history makes up a significant portion of your overall credit score calculation.

What’s the difference between your Credit Score and your Credit Report?
Credit Report
Your credit report is almost like a report card for your debt history. It consists of records such as the amount of loans you have; the type of loans (mortgages, hire purchase car loans, credit cards, bills) and loan applications pending. It will determine whether you get that house you’ve been dreaming of or that loan which will dictate the survival of your business. The interest rate the bank decides to offer you will also be based on this report.

For example, a CCRIS report records all past information on the loan amount, interest, and charges outstanding on each loan.
Therefore, you should pay your debts
 promptly as some banks may reject upcoming applications if you miss out on repayments by 2 months or more. Besides, depending on the bank’s requirements, they may reject your loan application if you have a debt ratio exceeds 50%.

Credit Score
Your credit score is the number generated from this report, along with other data that banks use to subjectively evaluate a loan application.

A well-known method used to measure this is the FICO score which rates applicants anywhere from 300 to 850 points (the higher the better). However, it is likely that many banks in Malaysia use their own internal method of measuring and determining your credit score. What this means is that your chances of getting your loan approved may vary depending on which bank you choose to apply at.

What factors determine your Credit Score?
In general, financial institutions focus on the 3 C’s: Character, Capital and Capacity.

Your characteristic reflected based on your attitude towards your loan. If you take pride in paying your bills promptly, you will get an A for reliability on your debt repayment. They also take consideration of your personal details such as the length of stay in your current address and the duration of your current employment.

Capital shows the amount of ‘valuable’ assets you hold which can be used as collateral such as real estate, personal property, investment or savings in the event your fail to pay your loan

Banks will also make an assessment on the capacity your income has to repay loans. The income you earn reflects your ability to pay off your debt. Thus, you need make sure that you have sufficient cash flow before applying.

1. What are the things that could hurt my Credit Score?
2. Bad payment history such as: making late payments
3. Defaulting on a loan
4. Having your home foreclosed
5. Having over-the-limit credit card balances

Does having multiple loans affect your credibility?
Yes it does.

If you have a variety of loans, it is quite likely that you will get a higher credit score. Having a mix of credit types is expected from people with longer credit histories, and helps you show you are an experienced borrower.

However, this is useless if you have bad payment history as this would mean a higher risk of bad debts. If you cannot juggle multiple loans, you shouldn’t apply for more. Having multiple loans isn’t necessarily bad, it is only bad if you can’t afford them.

Loans are definitely one of life’s necessary evils but if used well, could help you afford the things you need to live a full life. Always remember to take note of your credit score because this will make or break your loan application.

This was brought you by Denise Chan from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.
 

Order items from the LARGEST online store from China

Order items from the LARGEST online store from China


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TaoBaoMode: Your TaoBao Agent!

Who are we?

Welcome to TaoBaoMode.com, we're a reliable taobao agent, helping worldwide customers buy products from TaoBao.com and other online stores in China.

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How does it work?

Simply copy & paste taobao item URL at Quick Order, submit your order. We will check it for you and inform you when items ready!

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Order Process

Why buy from TaoBao?

Taobao.com is the largest online shop in China, it has the largest product categories, with tens of millions items. You can almost buy everything you need on TaoBao.com. What's more, the prices are very attractive.

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What makes us different from other taobao agents?

Simple yet Powerful
You can easily add, edit and delete items in your order, leave notes to us, mark down your parcel and so on. We make your process extremely simple!

Order combine
Placed many orders and want to ship in one parcel? We can help! You can freely manage your parcels: combine multi orders, ship part of order prior to the other. This will greatly help you and save your international shipping!

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We will check product quality before and after purchasing. We will check seller and product feedbacks before purchasing, when item arrives, we will check appearance make sure it's intact and in good condition.

Discounts on shipping
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We reply most of the questions and Emails in 12 hours, or even faster. We're more than happy to solve problems for customers with our extraordinary services.

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Singapore's top 10 billionaires

Singapore's top 10 billionaires

In land-scarce Singapore, real estate is much more precious than gold.

So it is not surprising that Philip Ng Chee Tat, CEO of Far East Organisation, is the richest man in Singapore with an estimated net worth of US$5.2 billion, according to a Wealth-X list of the top 10 Singapore-based billionaires.

Nearly 80 per cent of the property tycoon's net worth comes from his real estate holdings.

Ng's net worth accounts for about one-fifth of the combined wealth of the 10 individuals on the Wealth-X list.

Among them are a few foreigners - citizens of Brazil, New Zealand and Indonesia - who have established their main business in Singapore and reside here.

No.1: Philip Ng Chee Tat (Singaporean), Far East Organisation (real estate). Net worth: US$5.2 billion.

Ng, 55, became CEO of Far East Organisation in 1991. His father founded the company 31 years earlier, and it has grown to become Singapore's largest private property developer with 750 properties in the residential, hospitality, retail, commercial and industrial sectors.

No.2: Eduardo Luiz Saverin (Brazilian) of Anideo (technology) and also co-founder of Facebook. Net worth: US$4.2 billion.


A well-known philanthropist, Ng has given generously to universities and educational institutions in Singapore. The new Jurong General Hospital in Singapore, which will be named after his father, Mr Ng Teng Fong, following a huge donation of more than US$95 million by the Ng family in March 2011.

No.3: Richard Fred Chandler (New Zealander) of Chandler Corporation (diversified investments). Net worth US$2.8 billion.


No. 4: Kuok Khoon Hong (Singaorean) of Wilmar International (palm oil). Net worth: US$2.4 billion.


No.5: Sukanto Tanoto (Indonesian) of Royal Golden Eagle (diversified businesses). Net worth: US$2.3 billion.


No.6: Peter Lim (Singaporean), a private investor (diversified Investments). Net worth: US$2.2 billion.

In the number two spot - and the youngest billionaire on the list - is 32-year-old Brazil-born entrepreneur Eduardo Saverin, co-founder of Facebook. Saverin moved to Singapore in 2009.
Taking the third position is New Zealander, Richard Chandler of Chandler Corporation. His net worth from diversified investments is estimated to be US$2.8 billion.

No.7: Mr Goh Cheng Liang (Singaporean) of Wuthelam Holdings (paints). Net worth: US$2.1 billion.


No.8: Robert Martin Friedland (American/Canadian) of Ivanhoe Capital (mining). Net worth: US$1.9 billion.

No.9: Lim Oon Kuin (Singaporean) of Hin Leong Group (oil trading). Net worth: US$1.8 billion.

Wealth-X and UBS Billionaire Census 2013 noted that there are 27 billionaires in Singapore with a combined net worth of US$64 billion.

No.10: Sam Goi Eng Hui (Singaorean) of Tee Yih Jia Group, (frozen foods). Net worth: US$1.8 billion.

The top 10 billionaires in Singapore and their net worth are in the gallery below.
-----  Asiaone(Singapore)     10 July 2014


 

New Singapore online shopping site offers all-green products

Report from AsiaOne (Singapore) dated 7 July 2014 :-

New Singapore online shopping site offers all-green products

SINGAPORE - Environmentally-conscious shoppers in Singapore have a new online store to head to.
E-commerce site Envy Singapore, launched last Friday, offers a plethora of merchandise with one common trait - environmentally-friendly products which adhere to ethical manufacturing standards.

Not only that, products are also organic or natural, which means they do not contain harmful chemicals or artificial ingredients.

The multi-brand portal is founded by local distributor Natural & Free Lifestyle Pte Ltd, and features beauty staples from moisturisers to shampoo, and also consumables such as baby food, dried fruits and nuts.

Other niche all-natural products include locally-designed organic cotton clothing, hair dyes, wines and ciders.

"Each brand made available on Envy Singapore has been carefully studied and curated by our team to ensure that they fit the website's standards. We do this to ensure the standards of what we can offer to our customers, so they can be assured that these items are good for them, and the environment," said Ms Monika Tjia, Director of Natural & Free Lifestyle.

A new mother herself, Ms Tjia's first foray into this industry was motivated by her commitment to provide only the healthiest products for her baby, which meant going completely organic.

Noting that it was a tedious task searching for random brands, products and services sporadically available across the island, she realised a need for a site such as Envy Singapore.

"It's a necessary upgrade, making small changes to what we choose to use, wear, and consume, to make that big difference later on," added Ms Tjia.

Visit Envy Singapore at http://envysg.com or log on to its Facebook page at http://facebook.com/envysingapore.

Lending to family and friends: Should you do it?

July 4, 2014

In Malaysia, and most Asian societies, family ties are extremely important. Couple this with the fact that money as a topic is taboo for most and you’ve got a definite recipe for lending disaster.

 

By Diana Chai

 

We’ve all been at either end at least one time in our lives: when we either need to borrow money or lend it to someone else. It isn’t a big deal if it’s a matter of some loose change but what if the sum is a little higher? In the best of times; the money is paid back promptly and with no altercations but sometimes; the ordeal becomes a many-year-long nightmare of uncomfortable avoidance of communication or outright denial of repayment.

 

In Malaysia, and most Asian societies, family ties are extremely important. Couple this with the fact that money as a topic is taboo for most and you’ve got a definite recipe for lending disaster.

 

So before you borrow/lend money from/to family or friends, consider these issues.

 

As a lender

If you’ve been approached to lend money to someone; these are some considerations and steps to take before heading to the ATM.

 

Can you afford it? If you are struggling to make ends meet: giving someone a chunk of your money even in the expectation of getting it back is unwise. RM10 for a lunch is one thing but a larger sum you cannot afford to write it off in the worst case scenario will be problematic.

 

Who is asking? Consider how you feel about the person who is asking. If your relationship isn’t as close; lending money could create animosity.

• How do you feel about lending? Though many consider ‘feelings’ as a trap word: it is very important when you are dealing with family, loved ones and of course, money. Consider how you would feel if the borrower doesn’t repay or spends the money in a way you don’t approve. Will you be able to continue the relationship as it were? Understand that once you’ve passed the money to your friend/family member: you no longer have control over what happens to it.

• Set down the rules. Once you’ve considered everything above and have decided to proceed with this loan, set out the rules for lending and repayment. Keep in mind that there is a good chance for default so set rules for what will happen then. If possible (as much as you may not like to do this) put things down in writing. It doesn’t have to be a five page, legal missive: a friendly email or SMS will do just fine. “Hey Joe, so I am cool with lending you the RM200; but I need it back by the 30th of June as my bills will be due then. Thanks.”

• Don’t be afraid to ask. Many people are uncomfortable with asking for their money back but many a time; borrowers may take for granted that a quiet lender is a lender who doesn’t need to be repaid. A quick, simple call or message will suffice.

• Be ready to write off. There may be a time when it gets too tiring to keep asking and though you love the borrower; the person may be a real flake with money. Consider if the relationship really is worth losing over money. The call is completely yours and if you paid close attention to the first few points; this part won’t be hard at all.

As a borrower
Sometimes the shoe is on the other foot. Borrowing from friends and family may not be the kind of thing you really want but you may find yourself without a choice. If so, do consider the following:

• Have you tried every other formal way? Consider bank loans or even credit cards. Borrowing from a loved one or friend should be the absolute last option. Don’t take advantage of someone’s relationship with you.

• Put your request in writing: Along with a date for repayment. Be disciplined and treat the lender with respect by stating your intention to repay and when.

• Inform your lender if you have problems with repaying. If the date of repayment comes by and you don’t have the funds to repay: speak up and let the lender know. However, where possible, make returning this amount your priority.

• Don’t take advantage. Just because a lender has been kind enough to lend you money once; it does not give you free reign to ask every time the need comes up.

• Scrutinise your finances. If you’ve come to a point where you need to borrow substantial amounts from friends because financial institutions won’t lend to you; there is evidently a problem. Identify the problem and fix it.

• No one is perfect nor is any man an island – at some point in our lives we may be faced with difficulty or be in a position to help someone who is. If we are able; helping is usually the noble thing to do but sometimes even the best of intentions can go wrong. Don’t end up losing a perfectly good relationship over money or lose money over a really bad relationship. A little thought can go a long way.

This was brought you by DIANA CHAI from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

Learn How To Make Money Online With Mini-Course Email Marketing !

Learn How To Make Money Online With  Mini-Course Email Marketing !

 "Discover The Secret Way Of Making Money Online Without Selling"

Imagine... getting paid for sharing information and helping others... and being "thanked" for promoting products... couldn't get cooler than this, does it?

 

Dear Friend,

This is amazing stuff.

Frankly, I find it hard to believe, but I've just made money from affiliate commission without even trying to pitch a product.

The trick is this - by using a mini-course.

Maybe you've heard of what a mini-course is, maybe you don't. The fact is, many marketers aren't even aware of this simple and yet highly profitable method to make money from your prospects.

Technically, this is what represents a mini-course:

A set of emails with content, between 5-7 emails that are "chained" together to teach a specific topic.

Let me explain why it works so effectively and the process behind it:

 

Because they're "going through" your mini-course, you're not even pitching them to buy products - you're simply helping them with recommendations.

This method of making money online is so super cool and easy to do because all you're doing is giving away a FREE mini-course!

Which leads me to... The Mini-Course Formula.

"So What Is The Mini-Course Formula anyway?"

In short, it's the my complete blueprint, of A to Z on how to use mini-course to make money online under stealth mode.

The long version - The Mini-Course Formula is a blueprint that is systematically broken down into 4 components so that you can have an automated system to make money from the internet using emails. The components are:

Module #1:	Optin Page. You’ll discover how to layout a money-making plan as well as layout a persuasive, high-converting opt-in page to get website visitors to subscribe.
Module #2:	Mini-Course Creation. This is where you’ll find out how to create a mini course that will have subscribers beating a path to your opt-in page subscription form.
Module #3:	Email Strategy. Discover how to convert your subscribers into customers who buy from you again and again. This is where the money’s at.
Module #4:	Traffic Generation. Get traffic to your opt-page in order to build a big, responsive list and of course, make money from it.

If you notice, in essence, all it takes is SENDING EMAILS to make money online with this system. And by the way - I'll teach you how to automate the emails so that you're using a software to send them out sequentially. This way, you're literally hands-free.

So technically, the more people who are signing up for your free mini-course, the more money you'll be making. The beauty of this system is, you're simply giving your mini-course for free.



Go to :   http://bit.ly/1iPvohz