Financial Risk Transfer Planning
makes sure you have a peace of mind leaving no residual of financial hardship to your family members or yourself. It provides you with the most suitable pooled financing mechanism’s solution after careful consideration of your financial needs, constraints, and expectations.
“Estate Shrinkage”
“Of all life’s pleasures, only love owes no debt to death”
There are death-related expenses constitute the debt, these include outstanding taxes, legal and estate administration costs, funeral expenses, outstanding medical bills of proximity to death and outstanding financial debts. Its settlement has first priority beforehand estate distribution. This also means that for case of insolvency of estate, the family members are left to borrow or triggered a proclamation of sale of valuable estate to pay back the debt. Minimise estate shrinkage helps to preserve your estate value.
"A the end of the day, the goals are simple: safety and security"
” The greater the feeling of responsibility for the person the more true love there is “
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Financial Risk Transfer Planning
Financial Risk Transfer Planning
There is an inevitable trend of demand for fair opportunities and choices for healthcare services to attain our good health and well-being, predominantly through private healthcare services. This has enabled people the choice to enjoy long, healthy, and creative lives, a progress which is seen as human development from an economic point of view. However, retaining financial risk, insufficient amount of pooled financing solution or choosing out-of-pocket method to pay for any unexpected financial commitment might invite unnecessary financial catastrophe.
The same will also happen to other events with enormous financial liabilities, for example, loans from the purchase of assets, commitments towards to your other cash needs such as ensuring attainment of tertiary education by children and maintaining family lifestyle. Without careful risk management strategies, you may end up with estate shrinkage upon distribution of your estate or foreclosure of the dream assets you leave behind.
With the emphasis on Financial Serenity as the principle of advice, we would make sure you have peace of mind leaving no residual of financial hardship to your family members or yourself. Thus, we will provide you with the most suitable pooled financing mechanism’s solution through insurance planning after careful consideration of your financial needs, constraints, and expectations
We identify and quantify your financial protection needs to derive suitable insurance solution ...
CURRENT CRITICAL ISSUE
Malaysia’s Health Financing System at “Asymmetric Transition” – Rapid demographic and epidemiological transitions are seemed not match to the corresponding transition in its health system to better address the current and future needs of its citizens.1
Source : 1 Harvard T.H. Chan School of Public Health (2016). Malaysia Health Systems Research Volume 1, Contextual Analysis of the Malaysian Health System. Ministry of Health, Malaysia.
FACTS:
- Demographic transitions have taken place in Malaysia, and the country is projected to become an ageing society in between 2050 and 2055. An effect of ‘steepening’ may occur when the healthcare expenditures for older people are growing faster than for the rest of the population.
- Epidemiological transition- as income rising, basic health problem associated with absolute poverty become less significant, but the diseases related to affluence have escalated immensely. It results to adoption of more sedentary with low levels of physical activity but with stress filled lifestyles, consumption of tobacco, and nutritional transition to high calorie and low nutrition food.
- Reorientation of the health policy from a welfare-oriented approach to the adoption of privatisation.
- The demand for private healthcare outpaces public healthcare. It is accentuated with the changes of health consumer behaviour along the process of human development, in which people demands for fair opportunities and choices of quality healthcare services to enrich their wellbeing such as to live a long and healthy life.
- Extreme high medical inflation rate for private healthcare services, far exceeding the global average rate at 6.7% per annum in 2019- In market surveys for period of 2018 to 2019 on various private insurers conducted by Willis Towers Watson (2019) and Mercer Marsh Benefits (2019), both estimated the medical inflation from 11.4% to 13.1% p.a. and from 13.4% to 13.6% p.a. respectively.
- Nominal total health expenditures per capita grew at 7.77% p.a., higher than nominal GDP per capita growth rate at 5.96% p.a. for the same period 1996-2017.
- Out-of-pocket (OOP) health expenditure share of total health expenditure trend behaved inversely in comparison to peer middle-income countries.
- Financial Austerity – Plunge of fiscal capacity in public health expenditure from 6.21% in 2006 to 5.48% in 2008. It had then increased to 7% in 2015 and 2016, but the level remains uncertain and deficient against the global target of 11.5%.
CONCLUSIONS:
- For upholding social cohesion and welfare of citizens, the government should implement a mandatory universal health financing model to uphold its agenda for universal health coverage (UHC) such as National Health Insurance (NHI) or Social Insurance (Bismarck Model).
- Financial development provides financial accessibility to consumers through proactive financial access and innovation of the development of private voluntary health insurance (PVHI) as a pooled financing method. Apart from intensifying the coverage (penetration rate), it should be extended to primary care, dental care and health maintenance, which are still largely paid through out-of-pocket method.
- The need for policymakers to intervene in regulating private healthcare providers, so that the situation does not cause negative economic impact and jeopardise equity and financial risk protection.
# Based on data gathered and empirical studies conducted by Gavin Teoh for his dissertation (2020).