Importance of insurance

As we all know, on June 4th 2015 there was a major earthquake hit the least expected place on earth that is Sabah. No one could possibly expected this to happen there and there are quite number of deaths. Some people who have saved up so money in their account could survive for a little while till help comes, but what about the rest what can they do? This is why there is insurance policy to help in natural disasters and many more.

Some of us might think that this insurace policies are expensive, well thats a false information. Not all insurance policy are expensive some of it are really cheap with monthly installment or yearly installment. There are various types of insurance provided by financial company and insurance company and this might help when emergency comes. Just like the natural disaster that just happen a few days ago could save some people with insurance.

Savings tips from Expert

Five facts everyone should know

Before we get to the nitty-gritty, if you only remember five things about this, make it these:

1. 
   Every UK-REGULATED account gets £85,000 protection
   All UK-regulated current or savings accounts and cash ISAs in banks, building societies and credit unions are covered by the Government-backed Financial Services Compensation Scheme (FSCS). So if the bank fails, you'd get back up to £85,000 per person, per financial institution. The majority should get it within seven days.
2. Not all UK savings are UK-regulated
   Most banks, including foreign-owned ones such as Spain's Santander, are UK-regulated. Yet a few EU-owned banks opt for a 'passport scheme' where you rely on protection primarily from their HOME government.
   This includes Triodos etc. See the foreign banks list for full details.
3. The amount's double in joint accounts
   Cash in joint accounts counts as half each, so together you've £170,000 protection.
   If you've an individual account with the same bank, half the joint savings count for your total exposure, and any amount over £85,000 isn't protected.For more info, see the joint accounts protection below.
4. An institution is NOT the same as a bank
   The protection's per institution, not account. So four accounts with one bank still only get £85,000. The definition of 'institution' depends on a bank's licence and giant banking conglomerates make it complex.
   For example, sister banks Halifax and Bank of Scotland's accounts are only covered up to £85k combined. RBS and NatWest are also sisters, but their £85k limits are SEPARATE. See the What Counts As A Bank? tool below.
5. Spread savings to keep 'em safe
   For perfect safety, save no more than £83,000 per institution (the extra £2,000 gives room for interest). Spreading can be worth it even if you've under £85,000; if your bank went bust, the money could be inaccessible for a spell. Using two accounts mitigates the risk.
   For a full list of top accounts, see our Best Buy Savings guide. Or for how to save safely, including dealing with very big amounts, see 100% Safety below.

9 Reason to protect your finance

Do Your Taxes Early and File for Free or at a Very Low Cost to Get Your Refund.
Did you know that the Earned Income Tax Credit (EITC) refund may be the single largest check that many families receive all year?  If you make $57,000 or less you qualify to file your taxes for free or low cost.  You can prepare your own taxes for free online, you can have them prepared for you at a free tax prep site (a Volunteer Income Tax Assistance (VITA) site), or you can have your taxes prepared at participating H&R Block sites for $29 if you use the City’s coupon. For more information about these tax filing options, including sites and requirements, call 311 and ask for tax preparation assistance or visit nyc.gov/taxprep

Save for the Unexpected … Even Just a Little.
Unexpected emergencies like health problems or job loss can jeopardize a tight budget. Resolve to start saving on a regular basis in 2012, even just a small amount. Try an automatic savings plan that helps you effortlessly save every payday using direct deposit or automated transfers.  The City’s SaveUSA program, which is available at select Volunteer Income Tax Assistance (VITA) sites, can help you get started saving by depositing your tax refund in a bank account in a participating bank.  If you sign up, you could be selected to receive 50 cents for every dollar of your refund up to $500 if you save it for a full year.  Visit nyc.gov/SaveUSA or call 311 for more information.

Find Easy Ways to Cut Down on Your Expenses.
The start of the new year is a great time to cut out those unnoticed expenses that really add up. Did you know the cup of coffee that you buy on your way to work can cost you $800 a year? Buying a $10 lunch, five days a week, means that in a year you’re spending $2,600. In 2012, you can brew your own coffee; make lunch and take it with you; open a safe banking account (nyc.gov/safestart) and withdraw money only from ATMs at your bank ... and watch your savings grow!

Make a Plan to Pay Down Your Debt.
One of the best ways to take control of your finances and start to pay down your debt in 2012 is to get professional financial counseling. The City’s more than 20 Financial Empowerment Centers offer FREE, one-on-one, professional financial counseling in multiple languages. Counselors can help you negotiate with creditors and debt collectors, consolidate payments, or create a payment plan and a 2012 budget.  Visit nyc.gov/ProtectYourMoney or call 311 and ask for a Financial Empowerment Center near you.

Check Your Credit Report and Protect Your Identity.
Make it a New Year’s resolution to safeguard your personal information. Start the new year by checking your credit report and clearing up any inaccuracies. Throughout the year, be sure to shred all documents with personal information like account numbers and Social Security information to avoid becoming a victim of identity theft. If you’ve been a victim of identity theft, place an alert on your credit report, file a police report, and file a complaint with the Federal Trade Commission.

Open a Safe Bank Account.
If you don’t have a bank account, start the new year by opening one that’s safe and right for your needs. Safe and affordable banking does exist. All New Yorkers can open an NYC SafeStart Account—the City’s FREE bank account with an ATM card, no overdraft fees, and no monthly fees if you have a minimum balance of only $25 or in some cases even less. Call 311 and ask about the NYC SafeStart Account.

Don’t Let Debt Collectors Push You Around.
Protect yourself in 2012: Debt collectors must be licensed by the Department of Consumer Affairs (DCA), provide you with proof of debts, and cannot harass you even if you do owe money. If you are contacted by a debt collector, check immediately if the business is licensed and demand proof of the debt in writing. To check a business’s license status or to file a complaint, visit nyc.gov/consumers or call 311.

Claim Every Public Benefit for Which You Qualify.
Make 2012 the year you find out what programs and services are available that can earn or save you money. Visit nyc.gov/accessnyc to identify whether you qualify for benefits, including Food Stamps and child care assistance, health insurance, housing or employment, and much more. Ask your employer about pre-tax transit and medical cost programs, and college and retirement savings programs. At Tax Time, use the City’s network of FREE tax preparation services and get all the refund-boosting tax credits you deserve.

Shop Smart.
If something sounds too good to be true, it probably isn’t true. If you’re considering debt consolidation, debt settlement, or mortgage loan modification or using an employment agency, do not pay fees before you receive services. Get contracts that are clearly written, make sure you understand them before signing, and keep all receipts from your transactions. Looking to fix up your home? Get quotes, shop around, and get references before making your choice, and check with DCA to find out if the home improvement contractor you’re considering is licensed. Looking to buy a second hand car? DCA licenses and inspects second hand auto dealers. Check to see if a dealer is licensed by visiting nyc.gov/consumers and check a dealers’ complaint histories by calling 311.

 

Investment

DEFINITIONS
Investment is the action of placing funds for a period to obtain the required rate of return, with fully aware of the risks involved. The thing to remember though is that the rate of return can be expected, it is not guaranteed.

There are several different types of investments in Malaysia

Fixed Deposit Account / Investment Accounts
- Investing in bank / financial institution.
- Investment without risk.
- The advantages are low.
- Saving for a specific period.
Pros:
1. Return and equipment.
2. Secure Storage.
3. Savings may be issued upon request.

Real Estate-like land purchase, shop / office, home, farm and so on.
- Receive returns in the form of capital gains and current income.

Stock
-Investment Made by Company. Limited to get a return in the form of dividends or bonus.
- Interest Company Limited issued shares is to raise capital for developing the company.
- 2 types:
~ Share listed.- company shares traded on the stock market.
~ Shares are not listed. - Shares that are not traded on the stock market
formally.

A trust- unit investment that pools money from many people.
- Operated by professional managers.
- Suitable for small investors.
- The risk of loss is low.
- Investment Trust Unit consists of Trust, the Trust property and Gilts.

BASIC GUIDELINES FOR INVESTMENT.
1.Pelabur need to get complete information about the investment field who wish to undertake.
2. Ensure maximum benefits can be obtained either through interest rates, dividends and capital gain.
3.Mengambilkira risk in investment. If investors are less skilled, can invest in low risk investments and vice versa.
4.Modal available. If an investor invests in small-cap suitable low-risk investments such as the Unit Trust or the bank.
5. Liquidity is an easily convertible assets icing cash. Example: liquid assets - bank deposits. highly liquid assets - property.

Savings

DEFINITIONS

Savings are saving a fraction of the income of spent.
Savings can be made in various ways to ensure safe and secure. Usually we can save in formal institutions such as banks, trust units and special funds introduced by the government such as ASB, the Fund and the Fund Haji .In addition, we can also keep in the house.

We can choose to save the money that has high returns or profits. However, high returns necessarily have a higher risk compared to low returns that have a low risk. Risk refers to losses resulting from savings .So, the government has introduced the ASB, ASW and security that can be said is almost no risk can be used as a safe investment. For most people, these reserves are used on hard times who never expected by a person or additional expenses. No exaggeration to say that the soul catharsis and resolution of the debt overhang.


BENEFITS OF SAVINGS




~ As an emergency fund
~ As a fund to buy assets such as houses and cars
~ In preparation for marriage for those who have married
~ As a preparation for Old Age
~ Evade themselves from the burden of debt problems
~ Helping you make the investment
~ Adding financial and improve quality of life

Financial protection info

Each user requires peace of mind knowing that their savings in the bank is safe. Provide deposit insurance protection guarantees. In addition, users can now be relieved to know that the takaful and insurance benefits they are also protected by the Deposit Insurance Corporation of Malaysia (PIDM). PIDM is a government agency established in 2005 to protect depositors who have deposits in banks as well as owners of takaful certificates and insurance policies in the event of a member institution failure.

Protection for deposit insurance

PIDM protects your deposits up to RM250,000 per depositor per member bank. Eligible deposits are insured by PIDM savings accounts, current accounts, fixed deposits, foreign currency deposits, as well as accounts of sole proprietorships, partnerships, professional practices and companies. Moreover, conventional and Islamic deposit accounts also separately protected up to RM250,000 per depositor per member bank. RM250,000 limit includes both the principal amount of the deposit and the interest / return.

Separately protected account

Joint Accounts: Accounts with deposit insurance coverage separately, provided that a member bank records indicate the name of the joint account holders. However, the maximum coverage of joint accounts is not RM250,000 and RM250,000 collectively for each account holder.

Trust Accounts: For trust accounts, beneficiaries can receive coverage separately if the trustees to submit each beneficiary and the amount of interest that is subject to each beneficiary in the records of the member banks. Each beneficiary separately protected up to RM250,000 from deposit accounts are insured for their other types.

Account of a sole proprietorship, partnership or Professional Practice and Company: proper accounts also separately protected up to RM250,000.

Types of products that are NOT eligible for deposit insurance coverage, such as deposits not payable in Malaysia, negotiable instruments of deposit, other bearer deposits, unit trusts, stocks and shares and product or gold-related investment accounts.

PIDM member banks are all commercial banks licensed under the Banking and Financial Institutions Act 1989 and all Islamic banks licensed under the Islamic Banking Act 1983, including foreign banks operating in Malaysia. Membership is mandatory in accordance with the provisions of the Malaysia Deposit Insurance Corporation Act (MDIC Act). Please note this membership sign at all entrances to your member bank branch.

If you have savings deposits in different branches of a bank members, the amount eligible to be covered will be aggregated for purposes of deposit insurance coverage.

Residence or nationality does not affect deposit insurance coverage. Deposits placed in member banks PIDM will be protected up to RM250,000 per depositor per member bank.

In the event of a bank failure, you do not need to submit a claim. PIDM will make an announcement to inform about the repayment of deposits covered. Refund of deposit will be made based on records obtained from the depositary bank experts.

Source: Malaysia Deposit Insurance Corporation (PIDM)

Is this not a great news ?

No GST for life insurance

FMT Reporters

 | March 9, 2015

While the premiums are exempted from GST, the fee and charges imposed on these policies will be subject to GST.

KUALA LUMPUR: Life insurance is not subject to the 6% Goods and Services Tax (GST), Life Insurance Association of Malaysia (LIAM) said.

This also includes endowment insurance, child insurance, term insurance (including mortgage insurance) and education insurance.

“While premiums for investment-linked policies will not be subjected to GST, the fees and charges imposed on these policies such as policy fee will be subject to GST,” the association said in statement.

“Similarly the premium for non-life riders such as critical illness, medical, health, and personal accident will be subject to GST. As a guide, non-life riders are defined as riders which do not cover natural death.”

Policyholders who have bought non-life riders before April 1, will be required to pay GST on the applicable portion of insurance premium/fee/charges for insurance coverage from April 1 onwards.

Insurance companies under LIAM have already notified their policyholders that GST is applicable on non-life insurance and fees on the company’s website and through annual notices.

LIAM also advised all policyholders to contact their respective insurance companies to find out the amount of GST that they will have to pay for their medical and health, critical illness and personal accident policies that are due from April 1 onwards.

For policies paid through direct debit facilities, insurance companies will work with banks to increase the authorisation limit accordingly to include GST.