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Insurance Policy Review Service

We help you review your Insurance Policies

Our fee is RM 100 only + RM10 per policy.

Why need to review?
- Look for better value of money
- Understand what you paying for
- Independent opinion.
- Identify the gap to be closed.

If you think no value-added, fee is 100% refunded.
Satisfaction Guaranteed

FAX 03-2726 2800 or
Email (ReviewPolicy@MSolutionsAdvisory.com) to us with proof of deposit into our account
Hong Leong Bank Bhd 
Name: MSolutions Advisory
Account No: 216-00-0052-22

* Malaysia Only

How to Maximize Your Life Insurance Protection?

Most have bought one or more Life Insurance Policy but many still didn't maximize the benefits and protection out of it.

Why?

I believe many still don't know about Insurance Trust.
Not all Insurance Agent know about it too.

What is an "Insurance Trust"?
Basically, A Life Insurance Policy/Policies and A Trust.

Advantage of having an Insurance Trust, than merely just having a Life Insurance policy with proper nomination:
- it avoids Probate, enable quick distribution of money.
- no legal process to go thru, because the policy (and the claim) belongs to the Trustee.
- you can specify how and when to use the insurance $$ for your children/loved one, to prevent misuse or being conned or any unforeseen circumstances.

Getting a Probate, with a valid Will, will still take times.

Further, having a Section 166 Nomination may have some limitation that you and/or your agent not aware of, including
- limited to only wife and child or parent
- can not specific substitute beneficiary
- can not specific condition to distribute
- can not have periodical distribution, lump sum only.

In case, the minor (child below 18 years old) is the S166 nominee, the surviving parent of minor (i.e. ex-spouse) can claim and spend the insurance sum.

So, after all, by merely having Nomination is definitely not good enough for many people.

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Invest in Unit Trust with An Insurance Policy

Unit Trust Investment has been proven an important tool for many people, whom prefer to outsource the job to expert or have no time and capability to actively manage a portfolio on their own.

However, for those who invest in Unit Trust, I believe over 90% do not understand one important, if not vital fact that, Unit Trust Fund is almost certainly is Open-Ended Fund, except for the iCapital.biz which is listed on the Bursa Malaysia and the fund managed by Warren Buffet.

So, what is Open-Ended Fund and why investor must learn and understand it?

Open-Ended Fund means
A type of mutual fund that does not have restrictions on the amount of unit the fund will issue. If demand is high enough, the fund will continue to issue units no matter how many investors there are. Open-end funds also buy back units when investors wish to sell.
Read more: http://www.investopedia.com/terms/o/open-endfund.asp#ixzz2IcuV9aJ8
The major drawback of an Unit Trust Fund is, the Fund Manager, no matter how good, can not control the buying or selling of Units by the Investors, which were mostly influence by the "Greed and Fear" Cycle and efforts of the Sales People.

Thus, a good fund with good investment, at bad time, will have to sell the investment at loss because the Investors redeem the Units. OR, have to buy expensive Investment when Investors buy the Units when market is good. This is proven a reason why most fund can't perform well over long time.

How can we invest in Unit Trust Fund with less impact from above scenario?

Answer - Buy A Unit-Linked Insurance Policy.

Most people buy Unit-Linked Insurance Policy for the purpose of coverage, either for the Medical Plan or the Life. Therefore, the issue of "Greed and Fear" on investment is of minimum impact for the fund manager, thus the fund performance.

Additional advantage is, you get a 2-in-1 plan, investment with certain form of coverage.

How to maximize investment and minimize the Cost of Insurance?

Well, you just need to commit a minimum target premium, usually RM100 per month and the balance will be the Top Up premium, which effectively 95% goes to your preferred Fund.

With the RM100 target premium, you can have a range of coverage at your choice, e.g.
- Life/TPD benefits RM50,000 AND
- Medical Plan OR
- Personal Accident RM50,000

Insurance Policy - Family Plan

- Value for Money as compared to One Policy per person
- Easy to manage

Business Buy-Sell Agreement

What does a Buy-Sell Agreement Cover?

1. The Purpose of the Agreement
2. Inclusion of the particulars of the parties to the contract
3. Commitment which obligates the buying and selling of shares upon triggering event
4. Life insurance as a funding mechanism to facilitate the buy-sell agreement and the records of policies' details.
5. A provision which set out the payment.
6. In the case of corporation a provision for the deposit of share certificates and policies with trustee if latter is used in the arrangement.
7. A specified sale & purchase price or a pricing mechanism agreed upon by all parties.
8. A revaluation clause for future changes in business value
9. The manner in which the amount of difference between purchase price (value of business) and the insurance proceeds is applied.
10. Provision for disposition of policies on surviving business owners i.e. reassignment of policies
11. Ownership of policies and restriction in use of rights under a policy such as cash value, loan privileges or change of beneficiary.
12. Provision for mutual revocation or termination of agreement.
13. Provision which provide that if a business owner wishes to dispose of his/her business interest during lifetime, the first offer for sale should go to the other business owners at the price provided for in the agreement.
14. The date the buy-sell agreement takes effect and it will be effective when all parties have signed it.

For Business Co-Owner

True Story:

“Mr. Yow Sang Yee was a successful businessman. He had joined his childhood friend, Mr. Tai Sek Sai, to start a factory manufacturing carpets. Mr. Tai had a 60% share of the business while he had the remaining 40%. Ever since they started, the business had grown by leaps and bounds. Annual profit was now in the region of RM2 million. Their accountant had indicated that the business should have a value in the range of RM10 to RM15 million.

Then tragedy struck. He was diagnosed with third stage cancer of the liver and his health deteriorated. He wrote a will to give his assets to his wife and children. He took comfort in the thought that the value of his share of the business alone was enough to take care of his family comfortably and see his kids through their tertiary education. He also felt comfortable that his partner would not short change him as they had been childhood friends and had gone through thick and thin together for so many years. 

After Mr. Yow’s departure, the wife wanted to dispose of his shares but Mr. Tai turned her down because he was already controlling and running the company. 

Unfortunately for her, no outside party was willing to buy her shares and she had no choice but to plead with Mr. Tai to reconsider the purchase of the shares. He offered her a price of only RM1 million, rather than RM4 to RM6 million, which she had no choice but to accept it.”

HOW TO AVOID THIS PROBLEM?

Solution - BUY-SELL Agreement with Funding.

Funding options:-
1) Sinking fund
2) Insurance - Lowest cost - Most effective and economical.
3) Own asset/money

Why Businessman need Buy-Sell Agreement?

Benefits of a buy-sell agreement (to surviving Business Partners):
- Prevent forced liquidation and results in shrinkage of assets value
- Ensure continuation of business
- Prevent undesired struggles/dispute/conflicts with deceased's heirs
- Provide the funding to complete the buy-sell
- Guarantee the sale and the sale price
- Effective & Economical

How much it cost to write up a Buy-Sell Agreement?
~ Approximately RM5,000 only

Why Business Insurance?

To provide Total Insurance Solutions i.e. both personal and business insurance needs when something happens to the businessmen.

This involves unlocking their business wealth on top of the personal insurance proceeds.
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