They are claiming that only their insurance company provides investment in Takaful fund.

Dont be misled. Till date, I do not understand why this group of individuals need to mislead the public that only their insurance company promotes Takaful investment funds. My opinion, even if you want to claim monopoly over shariah compliance funds, there is no need to bring down other Muslim financial planners from other insurance companies in Singapore.

For the record, I am writing this blog post, to balance the perpetuated, biased views, on Islamic finance in Singapore…. and I will like to put things in the correct perspectives.

NTUC Income Cooperative, Muslim financial consultants also promotes Takaful fund. http://www.income.com.sg/fund/frame.asp?fundid=4

We do not want war. We want peace. Wassalam.

My other related posts that may interest you:

• Is there such thing as Halal Insurance In Singapore?
• Q & A on NTUC Income Investment Linked Policy
• What to Look For In an Investment Linked Policy?

(Myself and my client interviewed by BERITASuria, Malay news channel, few days ago. Click the link to view video)

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This new fatwa, is a fatwa that has been much welcome by the Muslim community who owns  insurance policies in Singapore .

The fatwa will affect all Muslims who have an insurance policy with insurance companies in Singapore with effect from Sept 2009. This is because since Sept 2009, Muslims can only use irrevocable nomination for their insurance policies and there are many limitations to it.

This fatwa does not affect policy taken before Sept 2009.

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 Before : Can only make Irrevocable nomination.

When a policyholder does an irrevocable nomination, he will automatically gives up right of the policy to nominees. He cannot take a loan on the policy without the approval of the nominee and worst still if there are more than 1 nominee.

As he has given out his right, the maturity of his insurance policy will also not be his but belongs to the nominee(s).

If he is single, he will face problem as he cannot  nominates his parents, as stated in the form only nomination of spouse or children are allowed.

If he is married, he cannot change his nominees on his own accord. He needs to seek permission from his nominee(s). Things get complicated, if husband and wife faced marital problems and then divorced.

For policies with critical illness coverage, should he make a claim due to diagnosis of any of the illness, the claim proceeds will be payable to the nominee. Though the nominee can give back to the policyholder, but why can’t it be paid directly to him. At the state that he is in, it seems like he has to beg for it. What if..what if..the nominee are not ‘trustworthy’?

Now : with revocable nomination.

Alhamdulillah, now with revocable nomination, he is free to nominate anyone he wants. There is no need to go through the emotional trauma of ‘not trustworthy nominee’ as he can change the nomination without the nominee approval, in the future.

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On a sidenote, if you have a portfolio of insurance policies, endowment, annuity, or investment linked policies with your insurance companies, and you need help to do revocable nomination, you can call always call me for assistance. I will be very happy to help you. Insya’Allah…

My other related posts that may interest you:

• Why Yearly Financial Review Is Very Important???
• Vivolife : NTUC Income Limited Premium Insurance Policy
• Insurance Riders: What The Heck Is This All About?

There are basically 2 broad categories of schemes for the civil servants. Non MSO and MSO.

CPW and CCS (Non MSO) are schemes for civil servants who joined before the year 1994.

Whereas MSO, are schemes for Civil Servants who joined after 1994.

If you are a civil servant, who joined after year 1994, you do not have any medical insurance coverage. The government of Singapore credits additional monthly 1% of your payroll to your Medisave for you, to buy a private hospitalisation insurance plan.

To me, it surprising, when I realise that a lot of civil servants, do not have a comprehensive medical coverage for themselves and their love ones. In my 4+ years of experience, as a financial consultant, I have only done 4 death claims, but for hospitalisation claims, I have done many…. Below is an example, of one of my client’s son who was hospitalised at a private hospital in Singapore recently.

Protect your love ones. If you and your family do not have a comprehensive medical insurance coverage and have been contemplating to get yourself covered, I urge you to take action now.

This is because the cooperative is giving 10% discounts on first-year’s premiums when you sign up for IncomeShield plan from now till 30th April 2012. Call me, and I will assist you!

My other related posts that may interest you:

• Why You Must Get Your Hospitalisation Insurance Plan COMPLETE With The Rider….
• Medishield Coverage For All Newborn Singaporeans And Permanent Residents
• Top 5 Reasons Why You Must Have Insurance

My blog attracts hundreds of visitors every single day and it is open for all.

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First and foremost, I will like to make it clear that, I try not to dodge on this issue, as 70% of my RSS subscribers are Non Muslims riskofhighunsubscriberate, but I will like to offer my transparent perspective on this. (this might be an interesting read for you too)

I am not an ustaz or a religious leader. Neither am I, a scholar or an academician.

…but I do qualify myself, as a Malay/Muslim financial consultant in Singapore. In my 4 years of practice, I have done 4 death claims, and numerous hospitalisation claims. All are Muslims. I talk to people on the ground, every single day on financial planning.

The question that I will like to answer today, is there such a thing as halal insurance in Singapore?

There are many strong views on this, and all are entitled to your opinion. I am offering you mine. You can subscribe to it or you can choose to reject it….but do read on….

1) Takaful Plans

In Singapore, you might have heard about Takaful plans. Takaful plans are offered by 2 entities, a cooperative and a commercial bank.

Unlike Takaful plans in Malaysia, Indonesia or other Muslim countries, Takaful plans in Singapore, is basically an investment plan also known as Investment Linked Policies. It is an investment plan that invests your money in a fund, called Takaful fund. It is a shariah compliant fund and the plan comes with insurance coverage. Should death, total permanent disability or 30 critical illnesses were to strike, halal money from the Takaful proceeds will be given to the beneficiaries.

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Takaful is good, but not for all. This is because, Takaful is an investment plan. A responsible financial consultant, will not recommend an investment plan, to a conservative 50 year old Pakcik (uncle), looking forward for his retirement.

Neither, will he recommend the investment plan, for one who has a short term horizon of say, 5 years or one who is risk averse.

Nor, will he treats Takaful investment plan, as a “one size fits all solution” to all his clients, because Takaful investment plan does not cover many things, example, hospitalisation.

He must educate his clients, that Takaful is an investment plan, that offers coverage and returns subject to the performance of the fund. ifnotyoulosemoneyclientwillfindyoulater

In Singapore, under section 27 of the financial advisors act, a financial advisor must determine the “risk profile” of the client before recommending him, financial instruments. If our client are able to take a bit of risk, Takaful investment plan is the solution to it.

So, if one is risk averse, how do we go about it?

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2) Cooperative insurance is the alternative.

When I recommend a life insurance policy to a client, I will give him choices. How do you want to get yourself covered?

Takaful Investment Plan with coverage? OR….. Cooperative Life Insurance?

There is a fatwa by MUIS, specially for the Muslim community in Singapore, on the permissibility of getting cooperative insurance in Singapore.

http://www.muis.gov.sg/cms/oomweb/fatwa.aspx?id=14384

Excerp from the fatwa,
“(i) Insurans yang ditadbirkan oleh syarikat kerjasama yang dianggotai oleh semua anggota-anggotanya untuk menjaga maslahat mereka dan apa yang diperlukan oleh anggota-anggotanya dari segi bantuan dan perkhidmatan, adalah seperkara yang diakui oleh syarak dan ia dari jenis bantu-membantu dalam kebajikan.

(ii) Begitu juga insurans syarikat mirip kerjasama (kooperatif) bagi maslahat masyarakat umum dan apa yang termasuk di dalamnya dari perkara seperti pengangguran, keuzuran, umur tua, kemalangan waktu bekerja dan yang seumpamanya, pihak konferensi telah memutuskan jenis insurans seperti ini adalah diharuskan. Dari itu ternyata bahawa insurans jenis kooperatif sahajalah yang dibolehkan oleh persidangan ulama antarabangsa itu.

Ini bererti juga bahawa insurans yang dikelolakan oleh syarikat-syarikat swasta yang bertujuan untuk mendapat keuntungan peribadi atau untuk faedah segelintir manusia telah tidak dapat pengakuan daripada para ulama yang menyertai persidangan Islam antarabangsa ini.”

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I shall not go in details, the need of having such fatwa in Singapore. Nevertheless, this fatwa is helpful, to serve as an advice, for many Singaporean Muslims, in need of insurance, but do not know if they can get it.

Hospitalisation bills are enormously expensive? If no insurance, how?
Takaful Investment Plans are good, but I am risk averse. I need insurance, how?
Car insurance in Singapore is mandatory? If no insurance, how?

Answer: If you are living in Singapore, and you need insurances that Takaful Investment Plan does not offer, like hospitalisation insurance, car insurance, business insurance, mortgage protection insurance, property insurance, travel insurance, pet insurance, Do Get It From A Cooperative.

At the end of the day, the choice is yours! Wassalam…..

My other related posts that may interest you:

• Is there REALLY only One Insurance Company Promoting Takaful In Singapore?
• Muslims In Singapore Can Now Use Revocable Nomination For Their Insurance Policies….
• Singapore Civil Servants, Have You Get Your Medical Insurance?

It is definitely challenging for me, to juggle both work and study at the same time, but I guess, I will soon, get used to it. I am thankful, that my job, as a financial consultant, is pretty FLEXIBLE.

We can make appointments as and when we want. We can postpone appointments, when the exams are drawing near….all in all, while still maintaining our steady paycheck. Isnt that cool?

All right…. As I undertake my studies, I will share with you, stuffs, that I learn in school, which I believe, can be applied in the business world. Let us start, with MAKING DECISIONS…

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In life, we are bound to make DECISIONS.

It may be a big decision or a small one to make.

It may be a simple one, or a life threatening one.

It may be a routine one, or a ONE TIME decision.

Today, I am going to share with a you, a very good decision making model, that I have personally learnt in class and then apply, in the real business world. Just browse through the slides below to get an idea…

(Note: Some details were omitted due to confidentiality)

Lastly, after computing and tabulating the scores, a final decision is made!!!

My other related posts that may interest you:

• $100,000 in 10 Months- T Harv Eker Guerilla Marketing In Action…## Strategy 1
• Review On Quality Leadership and Life Management Training @ Istana Kampung Gelam…
• Start With The End In Mind