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9 THINGS YOU DO THAT LOSES MONEY

 


#1 NOT NAMING BENEFICIARY FOR YOUR INSURANCE POLICY AND/OR EPF

There’s special protection laws/ acts for your insurance policy and EPF. This law protects the rights of your beneficiaries* In case you owe creditors/ banks/ ah long or  even LHDN, this law protects the money payout from your insurance policy and EPF for your loved ones……. provided if you name them in your insurance/ EPF. So get it done today and it’s free! 


Note: *if you are married, by law, you should nominate your spouse, but if you nominate your sibling instead, your sibling cannot use the money but rather, your sibling need to settle your estate’s outstanding and the remaining balance to return back to your spouse & children*


#2 NOT WRITING A WILL

Whether you just own a property/ car or a savings account, you need to list it down on a piece of paper… and write down who you want to give it to when you’re not around. And the same piece of paper when signed by 2 witnesses (who are not your beneficiary), is a valid document in court. Well of course, you need to name who is your executor or if you want to have a guardian for your kids and etc are also important details in a will too), otherwise your will be considered incomplete.


And today, if you have your young children of your own and don't have a will, imagine the trouble you are causing your family to have… first they deal with grief and now they have to go each banks to locate where your savings account is, go to EPF/ insurance company/ land office/ LHDN and etc…… Save your family the trouble and get your will done. Especially now COVID is on the rise.


Estate planning helps your family to locate what you have spent as possible if you get the right advice for it.


So in case you’re wondering, I also help you to write a will. Let’s chat! :)


#3 NOT KEEPING RECORDS OF YOUR PAST YEARS INCOME TAX DOCUMENTS

A client once shared how he wanted to claim his late father’s FD in a local bank account (+/- RM3,000) but was stopped by LHDN saying his dad owed LHDN for a default in past years when his dad was working but didn’t pay. The amount was exactly RM3,000 too….. Now, unless you have the document to prove them wrong, your family will be on the losing end. 


So keep the receipts from past years for your family’s convenience. Otherwise they may share the same “luck” as what my client went through.


#4 PAYING YOUR INVESTMENT LINKED POLICY YEARLY

Paying yearly ILP insurance may not be a good idea as you want to leverage on the unit price you buy monthly and increases your cash value


#5 PAYING YOUR TERM INSURANCE OR SAVINGS POLICY ON A MONTHLY BASIS

Term policies and savings policy doesn’t have any cash value elements thus you get discount when you pay it on a yearly.


#6 NON-SMOKER PAYS CHEAPER PREMIUM

If you’re a smoker, it’s time to consider a lifestyle change if you plan to save more money for your policies. After all, not only you save more money but you enjoy better health :)


#6 BUYING POLICY OR TOP UP POLICY AFTER YOUR BIRTHDAY

Buying a policy or doing a top-up before your birthday is cheaper especially if you’re planning to get life/ CI/ medical plan. However this does not apply for savings plan. So plan your timing right :) It is ideal to sign up at least 2 months before your birthday in case a health check up is required.

#7 YOU MISSED OUT COMPANY OFFERS

Sometimes insurance companies gives out really super offer such as one month free premium for new sign ups, or extra cash value were credited to your policy.


#8 YOU SWITCH INSURANCE COMPANY FREQUENTLY

Insurance company gives out loyalty bonus to loyal customer to their cash value. I got a bonus on my 10th anniversary for keeping my policy with the same company.


And furthermore, buying a new policy is often more expensive than top up unless you have a recent health condition that the insurance company impose a restriction, then getting a new policy would be a better option.


#9 BUYING A COVERAGE TOO LATE

Scenario 1: As person gets older, the higher risk a person may be exposed to illness and death so that’s why their premiums are a lot higher and limited


Scenario 2: When your child falls sick, it costs you RM10,000 and you didn’t buy a coverage yet.


Scenario 3: Ms. A has cyst in her breasts and womb, insurance company WILL NOT cover as these are considered as pre-existing condition




Check out my other websites:-

FB: www.victoria-lim.com

Website: https://victoria-lim.planyourfuture.today 


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