As parents, we want to give our children the best of everything, especially quality education. By providing good education, we equip our children for the future, so that they can take care of their material, social and other needs.
However, this is easier said than done. With education costs going up, only if we plan and execute it well would we be able to create the corpus required for our child’s college education.
This article highlights some important aspects of planning for your child’s educational needs.
Rising cost of education
This scenario addressed students interested in Engineering course and their parents. First, let us look at how much it costs to study for a Engineering degree in a private college. The fees for Engineering in Malaysia was estimated at RM40k per annum. So, considering other costs as well, the cost of a 4 to 5-year degree would be upwards of RM160k to RM250k.
Our goals in life
As parents, we have many goals for ourselves, and our spouse, children, family and friends. Goals for ourselves could include starting a business, retiring from active employment by age 60, travel around the world and so on.
We also need to support our spouse emotionally and financially for goals like wedding anniversary, world tour, special dates and so on. But, the two major (and most important) goals that we envisage for our children are education (primary, secondary, under-graduation, graduation, post-graduation, doctoral and post-doctoral degrees) and marriage.
However, among all the goals, the most important goal for any parent is to provide quality education to their wards.
To meet the education costs of our children, we can focus on the following two financial strategies:
- Spend less than we earn, and thus create ‘savings’
- Deploy the ‘savings’ as investments
How do I spend less than I earn if I have erratic income?
Pretty simple. Create a budget and stick to it. We should learn the art of saying no (yes, we have to say no to discretionary expenses like throwing parties and making unplanned trips). Even if we get regular salaries, the first cash outflow should be towards savings, and only the remaining should be spent. However, today, most parents spend first and say that they don’t have any money left for savings. So, when savings are zero, investments are also zero.
The deductions made by employers for EPF should be for our post-retirement life. We should never mix it up with education expenses of our child.
So, how do I secure my child’s education? What are the factors I need to consider while making investments?
Simply you can begin by taking up a education plan for as low as RM100/month and get the below benefits:
- Regular saving until the child reaches the age of 18
- Accumulate interest on saving
- Income tax relief up to RM3,000
- Plan becomes free if the payer is no longer alive.
Key takeaways from this article
- Children’s education should be one of the key priorities of parents.
- For newborns, it’s too early to decide their career. This should not prevent parents from investing for their education. The first cash flow every month should be towards investment.
- We should not use provident fund savings to meet education goals
- Cost of education goes up between 3% and 8% every year. Investing in education plan or SSPN, will help prepare you now and future.
Happy parenting and happy investing!
Article source: Parent Circle
For more detail on Education plan or SSPN-i, you can reach me at firstname.lastname@example.org and through Whatsapp at 019-6922825 for a free proposal.
2 years ago ·
by getinsured ·
Life Insurance Malaysia
Most people put off buying life insurance for any number of reasons—if they even understand it Take a look at this list—do any of them sound like you?
1. It’s too expensive. In the ever-burgeoning budget of a young family, things like day care and car payments and possibly student loans eat up a good chunk of the money each month, and a lot of people think that life insurance is just outside those “necessities” when money’s tight. But two things: life insurance is often not nearly as expensive as you might think, especially when you can get a good policy for less than the cost of a daily cup of coffee at the local café, and well, if money’s tight now, what if something happens to you?
2. That’s that stuff for babies and old people, right? People of a certain age remember telling them their grandparents couldn’t be turned down for any reason and figure that’s the target demographic for life insurance. Or, you might have been offered a small permanent insurance policy for your newborn, attractively presented with a cherubic infant on the envelope. The truth of the matter is that these are very specific insurance products—just as there are many insurance products for adults in their working years.
3. I’m strong and healthy! You eat right, you stay active, and everyone admires how grounded and centered you are. You passed your last physical with flying colors! That’s GREAT! But you’re neither immortal nor indestructible. It’s not even that something could happen to you – though it could – so much as when you’re at your strongest and healthiest, there’s no better time to get a policy to protect your loved ones. If you fall seriously ill or suffer significant injury later, it will make it tougher to get that kind of policy, if any at all.
4. I have life insurance through my job. Many people are offered life insurance as part of their employee benefit coverage –and often, it’s the first time they encounter life insurance and have no idea that a RM50,000 policy, or one or two times their salary, isn’t as much as they think it is. It sounds like a lot of money, until you figure that it has to cover some or all the expenses for your loved ones in your absence. Plus, if you leave the job, it’s typically the type of insurance that doesn’t “move on” with you.
5. I don’t have kids. Sure, kids are a big reason why some people get life insurance. But that’s not the only litmus for needing protection. If there is anyone in your life who would suffer financially from your loss—your spouse or live-in partner, a sibling, even your parents—a life insurance policy goes a long way in making sure everyone’s still OK even if something happens to you.
6. Life insurance—it’s on my list … eventually. There’s no deadline on life insurance, no mandate from the government on purchasing it. Your parents may have never talked to you about its importance, and it’s certainly not the most invigorating topic for conversation. But don’t let your “eventually” turn into your loved ones’ “if only.”
If any of this sounds daunting, just know that you can talk to an agent—at no cost. They will help you figure out how much you may need, and also find a policy that fits into your budget. Try our free online quote to get free insurance proposal today!
3 years ago ·
by getinsured ·
More than three quarters of Malaysians who are active contributors to the country’s savings and retirement fund, the Employees Provident Fund (EPF), do not have enough funds in their accounts for retirement, said a senior EPF official.
Ms Balqais Yusoff, EPF head of Strategy Management Department, told national news agency Bernama that 78 per cent of the 6.7 million active contributors did not have the basic amount of RM196,800 (S$66,944.21) for their retirement. The amount was set by the EPF as a savings threshold that would allow a contributor to spend RM820 a month for the next 20 years.
Ms Balqais said 65 per cent of active contributors had less than RM50,000 in their savings. Only 22 per cent have met the RM196,800 or more threshold.
“Based on our definition of basic savings, where retirees will need at least RM820 a month in their retirement years, those who have RM50,000 in EPF can go on for only five years before their savings run out,” she said.
“That is if they live at RM820 a month. And we know that RM820 is not enough; that amount is probably sufficient for grocery shopping only and that’s the reality today.”
She attributed the problem to Malaysia’s low salary structure, noting 89 per cent of the working population earns less than RM5,000, which translates into a lower savings rate for the EPF. “In terms of contribution rates in mandatory saving, Malaysia is the world’s fifth highest, but the salary structure does not translate into a high saving number,” she said.
“So, we need to constantly review the wage structure and the minimum wage also needs to be aligned with the rising cost of living.”
EPF is a compulsory savings and retirement plan for private-sector employees in Malaysia. At least 11 per cent of an employee’s monthly salary is set aside every month in a savings account, while employers are obligated to contribute at least 12 per cent of the employee’s salary concurrently.
Malaysians can fully withdraw their retirement savings from the EPF at 55, but many people tend to exhaust their savings within three to five years after a full withdrawal. Partly because of this, the Malaysian Healthy Ageing Society (MHAS) has advised Malaysians to educate themselves on the importance of having enough savings, as well as on healthy ageing, personal care and having a good insurance policy as preparations for old age.
MHAS adviser Professor Nathan Vytialingam said the public should realise at a young age how to manage themselves before they become a burden to others in their golden age.
“The biggest challenge for us (at MHAS) is to educate people on healthy ageing, but we will not stop our efforts to encourage them to educate themselves and seek advice from experts, especially regarding financials and healthcare,” he told Bernama. “We believe by doing this, they will be prepared to age healthily and enable the elderly to age better.” Agencies
Article source: http://www.todayonline.com/world/asia/78-malaysians-do-not-have-enough-funds-retirement
At Get Insured we help you plan for your future retirement plan by recommending affordable and reasonable insurance policy. Get a free proposal plan with our free quote proposal generator today.
3 years ago ·
by getinsured ·
Retirement is an important phase in our lives. While we can choose to deny its arrival by ignoring to plan for it, a well-establish approach to retirement could have a significant impact on your standard of living in later years. After all, retirement plan is a time when we should be enjoying the benefits of our working life.
Set your goals
Once retired, it’s time to start achieving things you put off because you didn’t have time to pursue them. A set of goals for your retirement will help you focus on what is important to you. Write them down, no matter how big or small and start working on your goals.
Find your interest
Whether you stop work immediately or ease into retirement, eventually you’ll be left with a gap where work once was. Find an interest or hobby and focus on it. Committing to a sport like golf or chess, joining a community group or even studying is a great way to stay busy and fulfilled.
Plan your money needs
Once you have an idea of the retirement lifestyle you want, work out how you will finance it. Benchmark your current financial position and factor in the goals you want to achieve along with day-to-day living expenses and financial commitments. Talk to an insurance agent who will help you assess your current situation and offer recommendations on how to make up any shortfall.
Plan your investment
Savings is an important part of any retirement plan. No matter where you are in your career or how much you earn, there are plenty of ways to boost your investment. This includes EPF contributions, investment-link plans and Personal Retirement Plans.
Get your concerns in order
Avoid future stress on your loved ones and get a robust and up-to-date plan for what will happen once you’ve passed. A will, insurance plan and nominating your family members are all important pieces of legal housekeeping. Depending on your situation life insurance is a good way to help you protect what matters most and provide financial security.
Get your resources
Start preparing for your retirement by reading articles, books and magazines; there’s a lot of information and advice available online. Understand how insurance plan or investment plans could help protect you and your family financially. Get a free proposal plan from Getinsured.my today.
3 years ago ·
by getinsured ·
SSPN-i Plus ialah Pakej Simpanan Pendidikan serta Perlindungan Takaful yang paling murah dan senang untuk didaftar. Berikut adalah senarai kelebihan yang dinikmati oleh pendeposit pakej SSPN-i Plus:
1. Dividen yang Kompetitif
Dengan dividen yang kompetitif dalam lingkungan 3% – 4% anda boleh mencapai unjuran simpanan yang bagus.
2. Pelepasan Cukai Pendapatan
Untuk warganegara Malaysia yang membayar cukai kepada LHDN, anda layak membuat tuntutan pelepasan Cukai LHDN dengan nilai maksima sehingga RM12,000.00 setahun.
Bagaimana boleh tuntut balik sehingga RM12k?
Anda layak untuk menuntut pelepasan:
1.RM6,000.00 (maksima) untuk seksyen khas Tabungan SSPN-i
2.RM6,000.00 (maksima) untuk seksyen takaful dibawah insuran nyawa dan KWSP
Ini bermakna, deposit simpanan anda ditangung oleh Kerajaan Malaysia. Buka Akaun deposit SSPN-i Plus hari ini, tahun depan kerajaan akan cover balik duit simpanan anda.
3. Khairat Kematian
Caruman keatas akaun takaful memberikan manfaat Khairat Kematian sebanyak RM2,500.00 hingga RM18,000.00 mengikut pakej. Untuk makluman khairat kematian tersebut melindungi pendeposit, pasangan dan termsuk sehingga 3 orang anak.
4. Elaun Harian Hospital
Peserta SSPN-i Plus juga akan mendapat manfaat elaun harian hospital sekiranya terpaksa bermalam di mana-mana hospital. Jumlah elaun harian tersebut adalah berdasarkan pelan yang diambil meliputi RM20 sehari hingga RM200 sehari.
5. Manfaat Takaful
Dengan adanya manfaat takaful ini, belanja pendidikan anak dapat dilindungi dengan pampasan wang ringgit sekiranya berlaku perkara yang tidak diingini kepada pendeposit.
6. Perlindungan Sehingga RM1 JUTA
Pelan Pakej Berlian memberikan manfaat sehingga RM1,000,000.00 sekiranya berlaku kematian ke atas pendeposit.
7. Tidak Perlu Pemeriksaan Kesihatan
Scara umumnya bakal perserta tidak dikehendaki membuat pemeriksaan kesihatan untuk melayakkan diri untuk manfaat takaful. Walau bagaimanapun perserta dikehendaki menjawab 3 soalan untuk Pakej Berlian. Sekiranya terdapat “Ya” di antara soalan tersebut, pemohon dikehendaki memilih pakej lain.
8. Serendah RM30 Sebulan
Jumlah deposit minimum bulanan adalah serendah RM30. Oleh itu dengan formula simpanan RM1 sehari, pendeposit boleh menyimpan sambil menerima manfaat takaful.
9. Simpanan Dijamin Kerajaan
Kerajaan Malaysia akan menggantikan semula wang anda sekiranya organisasi SSPN-i atau PTPTN ditutup, disahkan bankrap atau mengalami kerugian. Oleh itu deposit di SSPN-i tidak lebur begitu sahaja seperti nasib yang berlaku kepada peserta Skim Cepat Kaya.
10. Layak Memohon Pinjaman PTPTN
Pihak PTPTN telah menetapkan syarat pembukaan akaun SSPN sebagai syarat kelayakan pinjaman pendidikan.
11. Cabutan SSPN-i
Setiap deposit RM50 melayakkan untuk satu cabutan SSPN-i Plus. Antara hadiah menarik yang ditawarkan ialah Toyota Vios TRD Sportivo, Honda Jazz, Proton Perdana dan wang tunai.
Daftar SSPN-i Plus Hari Ini dan Nikmati Kelebihan Berganda
Oleh itu, jangan berlengah lagi. Mula menabung hari ini dan nikmati kelebihan berganda. Menabunglah untuk masa depan anak-anak anda hari ini.
3 years ago ·
by getinsured ·
No matter what’s your age or how much income you earn every month, basically everyone needs insurance. Unfortunately, majority of Malaysians today don’t have enough insurance coverage because they simply don’t know how much insurance coverage they need.
Being underinsured, while better than being not insured, is still an unsafe situation that can hurt you financially in the event of some unfortunate accident happens.
Young people today in their 20s and 30s are particularly vulnerable to being underinsured or not insured at all, which is risky because these are the years when you should be getting enough insurance coverage to protect your future funds!
First, let us understand what life insurance is all about. Life insurance is what gives you and your family protection against death, total permanent disability (TPD) and critical illness.
Now, let see the types of insurance plans available in the market today:
WHOLE LIFE PLANS
With these plans, you get lifelong protection as long as premiums are paid. Most of such plans build cash values that can be withdrawn in the form of policy loan in case of an emergency. “Riders” to cover for illness and total permanent disability can be added to basic plans which will be waived if you met with critical illness or TPD.
With this, you get protection for a fixed period. It pays the sum assured only if you die or become totally or TPD during that period. Term insurance has no surrender value when the policy ends or terminates prematurely. However, the cost of this type of coverage is usually lower than that of a whole life plan. Term insurance usually comes in terms of five to forty years and is renewable when each term ends.
It is aimed at building up your savings over a permanent policy term. The policy pays the sum assured and any bonuses you have built up at the end of the policy term, or when you die or become totally or TPD during the policy term. Depending on your needs, an endowment policy can serve as an all-purpose savings plan, a children’s education savings plan or a retirement plan
INVESTMENT-LINKED INSURANCE PLANS (ILP)
Such plans invest in different investment instruments while providing you with optional insurance coverage that you can vary according to your needs. This type of policy will combine saving, investment and medical coverage into one plan.
So how do you really calculate the amount of insurance coverage needed? To know the amount, we need to consider a few things as below:
You need to consider your monthly expenditure and monthly income first to make an estimate amount needed annually and times it with number of years you will survive or your family needs. Long term saving goals also need to be considered, including money needed after retirement and children’s education.
Let’s look at an example below:
Let’s assume John is a working adult age 30 years and married with one kids. His monthly income is RM4,000 and his monthly expenditure (includes his car loan, mortgage loan, household expenditure, food and etc) is RM3,000. If let’s say he met with an accident which puts him in TPD condition which may cause him to lose his job. Now let calculate his estimate coverage needed to support his living without any income coming in.
Yearly expenses: RM36, 000
Estimate number of years and amount needed to support his family (30 years): RM1,080,000
So the estimate minimum level of insurance protection needed is around RM1 million.
Now the above amount doesn’t include inflation rate, additional medical cost, and child’s education cost and so on.
Thus, from the above example we may conclude that the estimated life insurance protection coverage for John’s family is equivalent to about 22 times the annual income. Even if he have some savings in bank or invest in unit trust, it would not be enough to cover his expenses.
So before you decide to put all of your money into savings or investments, it’s is better to just remember that all it only takes a single accident to clear out your savings. Don’t take the risk of assuming nothing will ever happen to you. Get an insurance proposal today and purchase an insurance policy that will make financial risk transferred to an insurance company!
So is your insurance protection coverage enough to support you and your family during emergency? If you’re not sure, then talk to us today and we will guide you.
3 years ago ·
by getinsured ·
SSPN-i Plus Online
It is a SAVINGS (can withdraw principal plus interest after 3 years) + PROTECTION (a term life + 36 illness + Hospitalisation + PA) + TAX DEDUCTIBILITY (up to RM6, 000 p.a.)
How many type of payment plan available?
There are as low as from RM30 to RM500 per month as below chart.
Below is an example for a RM100 plan:
Savings per month: RM100/month (RM90 savings + RM10 protection p.a.)
Savings per annum: RM1080/year
Estimate tax deduction: RM300/year. (maximum deductible) = 25% x RM1, 200
Term Life : RM20,000 up to 64 years old
36 Illnesses : RM10,000
Hospitalisaton: RM20 per day
PA : RM40,000
One off additional payment of death benefit : RM2,500
- Free RM500 for RM500 deposited (first time only)
- Savings guaranteed by Government
- Minimum saving with insurance coverage worldwide
- Withdraw every 3 years once.
- Eligible to apply for PTPTN loan for your kids
- Eligible for tax relief up to RM6,000 per annum
- Dividend on saving amount
- Participate in lucky draw (every 6 months once)
- Better than bank FD savings
How to register for a SSPN-i Plus account?
Registration and payment can only be made ONLINE directly to SSPN portal below:
Link to SSPN-i Plus website portal
3 years ago ·
by getinsured ·
When it comes to protecting you and your family’s future, many people misunderstood the need for insurance. We look at the five biggest misconceptions people have when getting an insurance policy.
It’s too expensive
Many people thinks that life insurance is expensive and unnecessary need, but an insurance policy that’s tailored to suit your lifestyle can cost less than your daily cup of tea. That’s a lot less than what you would have to pay in the event something unexpected happens and you had to pay for costly medical bills. The main point is to search around, and find a policy that suits your needs and your budget.
It’s only for old people
Between the ages of 18 to 30 you may be more interested in spending time with your friends and travelling than thinking about your future. It’s easier and lower to get an insurance policy in your younger age when you are healthy and no known health problem. Once you are affected with some health problem, then getting a policy will be hander and more expensive. If you want to retain control of your financial freedom as you grow older and start thinking about retirement plans, it’s worth considering options where you’ll get a lower premium.
It’s too early
While you are still young, the insurance premium amount will be lower and easily available, compare to those you get after getting older or after getting some health problem. As cost of medical is rising every year, it’s a safe bet to get insured earlier than late. In case you are affected with an illness, then getting a new insurance policy will be harder and expensive. In this kind of event, you don’t want to leave your family with the burden of costly medical bills.
It’s better to save in bank
People usually assume they will grow their money by saving in banks, ultimately self-insuring to protect their surviving family against financial risk. It’s good to save in banks, but investing in an insurance policy will give you both savings plus additional sum assured (and medical coverage for those investment-link plans) so you can avoid touching your savings fund if something did happen and still have funds for that future asset dreams instead.
My employer pays the bills
Yes, most employers do offer group insurance coverage for their employees today, but does that coverage sufficient to cover the medical cost? Not all employers cover fully the medical bills, and sometime you will need to folk out your own money to cover additional medical cost. While having medical coverage while working is good, but what will happen when you leave or retired? Your employer will be no longer covering for your medical cost during the retirement age. This is when you will need the most and if you plan to take insurance during your retirement age, be prepared to pay a huge premium amount.
No matter what, insurance is not considered as expenses; instead see it as a way to protects you and your family during your difficult time. For varies insurance protection plans, visit Getinsured.my today to get free proposal quote for your insurance need today.
3 years ago ·
by getinsured ·
PARENTS should prioritise saving money early for their children’s education.
With increasing commitments, parents need to save smart, and this is where the saving schemes under the National Higher Education Fund (PTPTN) can help parents.
For Chan Cheng Choy, the SSPN-i Plus is a good product for education financial planning as it also comes with additional benefits.
Chan, 48, from Klang, said he and his wife, Song Bin Geat, 45, started depositing money into SSPN-i since 2013 before changing to SSPN-i Plus, which offers takaful protection.
They save RM4,000 every year for their three children — Chan Joey, 16, Chan Chloe, 15, and Chan Joel, 13.
“This will ensure that we are prepared for our children’s further education,” he said.
He said a portion of the savings was contributed to takaful protection.
“For example, for those who chose to commit RM300 per month under SSPN-i Plus, RM270 of it will be saved while RM30 will go to takaful,” he said.
“The coverage includes death and permanent disability, critical illness and hospital allowance,” he said.
Chan said in comparison with loans from banks for education, students have more benefits in terms of repayment.
PTPTN also offers flexibility in terms of payment as students would only need to repay their loans after they have completed their studies.
“PTPTN is also considerate as the students are given time to repay their loans if they are unable to secure job,” he said, adding that repayment would help the future generation secure education loans.
He said there was also tax relief that parents could benefit from by saving for education and takaful. Furthermore, when two parents are contributing, both of them will be entitled for exemption.
Chan was the consolation prize winner of RM2,000 for a 2016/2017 first quarter prize draw during the recent Cabutan Wow! SSPN-i Plus.
Another winner of the same prize was Ravindran Krishnan, 54, from Seremban.
He saves RM100 per month for his three children — Tikcshnapreiya Ravindran, 18, Manojhpriyan Ravindran, 16, and Avaniishpriyan Ravindran, 13. He began saving since the middle of this year.
Ravindran said he saved money for his children, while his wife, Devaka Naraya-nasamy, 51, who works in a bank, looked after the children’s personal insurance needs.
“My children also have a close age gap and will be going to higher learning institutions soon,” he said.
Ravindran said he had confidence in PTPTN because it was a government agency.
Last year, PTPTN introduced SSPN-i Plus, which is an affordable savings scheme with a comprehensive takaful protection after the introduction of SSPN-i.
SSPN-i Plus comes in six packages, from an amount as low as RM30 per month, that covers both savings and takaful.
Among other benefits of SSPN-i Plus are competitive dividends, tax relief of up to RM12,000, insurance coverage of up to RM1 million based on package and no health check-up requirements for takaful protection.
For more details visit SSPN-i Plus site for online registration
Article source: New Straits Times (http://www.nst.com.my/news/2016/12/194275/sspn-i-securing-best-your-kids)