The 10 Most Common Mistakes Insurance Agents Make

Problem #1

Prospects have more sales resistance training than agents usually have in sales presentation skill.

Prospect response to insurance agents is designed to get as much information as possible and be in control of the situation. Prospects often mislead insurance agents about their intentions, how much they’ll spend, who makes decisions, etc.

The prospect intent is designed to turn agents into unpaid consultants, lead them on until they have all of the information they need, and often use their quotes to compare with their current agent or a competitor.

When prospects have what they need, they stop returning the agent’s phone calls.

Does this make prospects bad people?

Of course not.

We all use this system for dealing with salespeople…it’s almost second nature.

Why do prospects do this?

It’s simple.

It works.

The stereotype of an agent is not a good image for most of us, and prospects are afraid of being sold something they don’t want. In order to protect themselves, prospects feel they need a way to deal with agents. It is an instinctive reaction to the negative stereotype of agents that causes prospects to put up a defensive wall.

So how do most agents deal with the prospects system of defense? Most play right into it. Many don’t use a systematic approach to selling. They allow the prospect to take total control of the sales process. The agent eagerly:

o gives their knowledge

o makes commitments without getting any in return

o wastes resources on pursuing deals that will never close

o gives quotes to non-prospects who never buy

o misinterpret the ubiquitous “I’ll think it over and get back to you” as a future sale

How do most sales organizations contribute to the problem? Frequently they focus on product knowledge and overlook teaching what circumstances or concepts products fit best with.

The solution: Train agents on a systematic approach to making presentations so they have “a track to run on.” The training should balance both the prospect and agent’s best interest.

Problem #2

Spending too much time with prospects that will never buy.

A manager recently evaluated two of his agents like this: “Gary spends too much time with non-buyers, and gets too involved in non-productive activities. One root cause of this behavior is that he doesn’t ask the tough questions. Amy is strong with prospects, but both she and Gary have lost deals because the competition asks for the business while they give quotes to the prospect.” Why is this true?

Agents don’t ask the hard questions up-front for fear of making their prospects angry, they are afraid they will lose something they don’t have. Most agents think their job is to close everybody.

Over the years sales training has emphasized, “Don’t take NO for an answer.” Insurance agents are taught to be persistent…handle stalls and objections…trial closes…always be closing…and yes, even be manipulative. No wonder prospects need sales resistance to shield themselves!

Prospects realize agents don’t want to hear “NO” and that when they do, they’ll “hang in there” and try to turn “NO” into “YES.” When the poor prospect really means “NO,” s/he has found the easiest way to get rid of a agent is to tell them, “I’ll think it over, and I’ll get back to you.” How many “think it over’s” really turn into business?

The solution: Agents need tools to separate tire-kickers from buyers. They need an approach that obtains support early in the sales cycle. They need to learn the fine art of tactfully qualifying prospects in, not qualifying them out. The top agents learn to ask the hard questions up-front, saving precious resources for real opportunities. “NO” is an acceptable response from a buyer. “Going for the NO” requires a tremendous paradigm shift for most agents, but it can take all the pressure off the agent and increase productivity. This approach allows prospects to feel in control, this then relaxes them, and lets them buy instead of feeling like they are being “sold.”

Problem #3

Agents talk too much.

A manager recently said, “My agents’ listening skills aren’t where they need to be; someone says something and they don’t find out the real reason or intent behind the question, which leaves the prospect feeling like my agents don’t understand them or their issues.

Of course, when we sent them to the College of Product Knowledge, filling them with technical knowledge and then sent them out to make their quotas, we should have expected this result.”

So what’s the problem telling our story? First, people buy for their reason, not the agents reasons, not even their company’s reasons. Second, most companies’ presentations sound the same to the prospect, and when they sound the same, the agent just becomes another agent to the prospect, and then to the prospect, low price becomes the determining factor in getting the business.

The solution: Asking questions is the answer. Teach insurance agents to stop regurgitating to the prospect and start asking questions. Prospects should do at least 70% of the talking on the sales call. The only way this will happen is for the sales rep to ask a lot of questions.

Questions gather information. Ask questions to find out what the prospect’s “pain” is. This is the same thing your family doctor does during an office visit. They ask – they don’t tell you anything until they have made the proper diagnosis.

Problem #4

Weak Agents focus on price.

Price is never the real issue! Agents focus on price because it’s often the first thing the prospect asks about. Yet study after study confirms that quality and services are almost always more important than price. Price is never the main reason for getting and keeping business. People buy our products to either solve a problem they have, or improve something about their current situation or protect against future occurrences.

The solution: Teach agents to be more effective in asking questions and getting to real issues. Once they learn to do this, price will not be the determining factor in making sales.

Problem #5

Product knowledge is over-emphasized and misused. As a result, selling often becomes nothing more than “pitching and presenting.”

Most sales training focuses on product knowledge. studies show that 80% of training dollars spent annually are spent on product knowledge training. Agents, once filled with this product knowledge, are eager to share this information and become a Professional, Unpaid Educator. The focus then becomes totally on product, and not on the prospects problem, which is where it belongs.

The solution: Provide training in the strategy and tactics our agents need to help prospects clearly define their problems and co-build solutions that fit their needs. Product knowledge is important, but how it’s used at each phase of the buying process is the key.

Problem #6

Agents fail to get prospects to reveal budgets up-front. Many insurance agents are uncomfortable talking about money. Discussing money is seen as intrusive, and unpleasant. Many agents avoid talking about money, until the prospect forces the issue. This is one of the five most common weaknesses that agents have.

The solution: Knowing whether there is money upfront will help the insurance agent distinguish between a prospects who is ready to solve a problem from one who is not committed. Comfortably talking about money is a key to management, where resources are evaluated based on bottom line impact. Teach your agents to find out two things about money:

o How much the problem is costing the prospect; in other words the amount at risk.

o How much they’d be willing to invest to solve the problem.

Without a candid discussion about money, the agent is left to make certain assumptions. And we all know what happens when we make assumptions!

Problem #7

Agents fail to get firm commitments from prospects.

Insurance agents are often very willing to jump at the opportunity to do a quote, presentation, etc. This approach is incredibly time-consuming and resource intensive.

How many quotes has your team/distribution sent out over the last twelve months that resulted in nothing? How much does it cost your team/distribution on an annual basis to do quotes that go nowhere?

The solution: Agents must learn what motivates people to buy. They must master the skills required to help prospects become comfortable sharing problems, and they must learn to determine the prospects’ level of commitment to solve these problems before they begin to offer their solutions.

Problem #8

Lack of sufficient prospecting.

A quote from a manager: “They don’t do enough prospecting, even ‘when I use a long stick.'” All professional agents will eventually be faced with a bout of call reluctance. You know the story – they have so much paperwork on their desk they can’t possibly find the time to prospect for new business OR they’re so busy calling on existing customers (who incidentally aren’t buying anything) there’s no way they could add any new appointments. Getting ready to get ready. The BT club (bout to) Sound familiar?

o Over 40% of all veteran sales professionals have experienced bouts of call reluctance severe enough to threaten their career in sales

o And 80% of all new agents who fail within their first year do so because of insufficient prospecting activity.

The Solution: Insurance agents need to develop a realistic activity plan. Monitor the plan weekly and implement effective accountability.

Problem #9

The insurance agent has a strong need for approval.

It’s an easy and common mistake. “I love people, so I’ll be an insurance agent.” You end up with an insurance agent that would rather make “friends” with their prospects than conduct business. While developing relationships are an important part of the selling process, selling is not a place for people to get their emotional needs met. In fact, it’s the opposite: a tough and demanding profession, full of rejection. People who internalize the rejection end up getting out of the profession. Truth is, they should never have gotten in the business. Sales interactions are fundamentally different than social interactions. Successful professionals understand and accept that the bottom line of professionally selling is: MAKING MONEY.

The Solution: Evaluate yourself to determine if you have this need for approval. Managers need to ask pre-hire screening questions that helps to hire stronger people and teach them a system that helps strike the appropriate balance between developing relationships and getting commitments.

Problem #10

Insurance agents don’t treat sales as a profession.

Professionals like doctors, lawyers, engineers, teachers, and CPAs’ all have one thing in common – they attend continuing education to maintain and increase their proficiency. Yet how many insurance agents are continually seeking new ways to increase their skills? Many have the attitude, “I’ve been selling for years, what more can I learn?”

The solution: Top performers in every profession are always looking for ways to sharpen their skills and gain the fine edge that leads to consistent success. Managers need to invest in top performers and help them grow their skills. Ego stunts your growth so managers have to be willing to set their ego aside and be willing to grow, modeling behavior that demonstrates it is more important to the manager to be effective than to be right. We can all learn from each other.

In Summary:

Hiring: Distributions, supervisors and managers must complete, step-by-step, a formal process for profiling, attracting, recruiting, interviewing and hiring top performers. Look to hire goal achievers not goal setters. Most managers hire goal setters and are surprised when agents never achieve their goals. The truth is the agent only had a wish list. Ask the agent when interviewing or coaching to describe goals they set and “how” they achieved the goal. If they didn’t achieve then it was it a goal or only a wish list?

Effective recruiting and hiring is the most important job of any manager. No amount of training, coaching or mentoring will make up for a poor hiring decision. Do it right the first time.

Managing: Implement a sales management process that emphasizes more effective recruiting, hiring, coaching, growing, and developing agents. Most of all quit accepting excuses for poor performance from yourself and your agent, raise your expectations and implement a rigorous accountability process. This starts with your team production-if you are not meeting standards. how can you expect to hold your agents accountable?. In management, you don’t get what you want – you only get what you expect and inspect. Remember, you manage things – you lead people.

Training: Tapes, books and one -day seminars are fine for intellectual learning or external motivation, but if you want to be a better golfer, pianist – or a better sales person, you must practice and develop new skills. Selling is a skill that can be taught, learned, and mastered over time.

Phone scripts and rebuttals are intended to assist in moving your management and sales career forward or allowing you to increase you current volume of business.

Remember these are only meant to be sales tools, they do not work, you have to work them.

The key is to do enough of the right things, enough of the time.

Give success time to happen-and do something today to make it happen!

The clock starts NOW!

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What Are the Factors to Consider When Buying Life Insurance?

As you are shopping around for insurance quotes and insurance companies, these are a few basic factors you need to consider before you make any decision.

1. HOW MUCH LIFE INSURANCE COVER DO YOU NEED?

Here is a quick guide if you are not doing this with a financial planning professional yet. For ease of calculation and explanation, we are not taking time value of money and inflation into consideration.

Financial Obligations

Take into account any financial obligation that needs to be paid off if premature death or unfortunate event such as total & permanent disability or critical illness should occur. Examples could be business or personal loans or debts to be repaid or mortgage loan repayments.

Financial Support

Is there anybody who is dependent on you for financial support? Maybe aged parents, spouse or children? If there is, you may want to plan for the financial support to continue should any unfortunate event happen. For example, you may be planning to provide for your aged parents or a young kid for the next 20 years with an annual sum of $20,000. You would need a sum assured of $400,000 should that sum of money be needed right now.

Financial Gift

Is there a lump sum of money you would like to provide if an unfortunate event should happen? Is there someone you would like to leave a financial gift for when you are not around anymore? Or maybe a charitable cause you would like to contribute to? If there is, be sure to take this into consideration in your calculation of how much insurance cover to buy.

Replacement of Income

This is the tricky one where you will read of many differing opinions. The reason why this question is not so straightforward to answer is that guesswork of your income growth rate is involved.

There are general (very general) rules of thumb for this though.

You need to know how many years you would like your income to be replaced for. For example, if you would like your income replacement to be for 10 years. You will need a $500,000 sum assured if you are earning $50,000 currently. That will enable you to withdraw $50,000 per year for 10 years.

Alternatively, some may suggest for you to have insurance cover of 20 times your annual income. If you have a cover of 20 times your annual income, an investment return of 5% from your insurance proceeds will be able to replace your current income perpetually.

2. HOW LONG DO YOU NEED THE INSURANCE COVER FOR?

Knowing how long you need the protection of insurance for will play a part in knowing what types of life insurance products may be suitable. Do you need the insurance cover for a specific number of years only such as for a specific loan payment period or do you prefer the insurance protection for the whole of your life?

3. WHAT IS YOUR BUDGET FOR INSURANCE PREMIUMS?

Knowing how much sum assured and how long you need the coverage for is one thing but your ability to pay the insurance premiums also need to be considered. For example, if you require a specific sum assured but your budget is limited, you may need to buy a term life insurance policy to get the required insurance cover even if you may prefer an insurance policy that can accumulate cash values.

4. WHAT TYPES OF INSURANCE POLICIES SHOULD YOU BUY?

There are different life insurance products to suit different financial needs and wants. Find one that is suitable for yours. There are mainly four types of life insurance products.

Term Insurance

For protection needs with no accumulation of cash value

Whole-Life Insurance

Mainly for protection needs with accumulation of cash value

Endowment Insurance

Mainly for savings needs with accumulation of cash value

Investment-Linked Insurance

Accumulation of cash value through investments. Whether it is for protection or investment needs depends on the specific policy.

The pointers listed above is catered to the Singapore market. They are meant for general information and discussion. It is not intended to provide any insurance or financial advice and you should always seek advice from a qualified adviser if in doubt.

Benjamin Ang has a Bachelor of Business Administration and holds the designation of Associate Financial Consultant (AFC) and Associate Estate Planning Practitioner (AEPP). He writes about wealth matters to share financial knowledge with the public and also writes regularly on living and experiencing all the wonderful things that life has to offer.

Find out more about him at http://www.benjamin-ang.com/

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Best Loans For Single Mothers – Learn How to Get Approved Fast

If you are a single mother, you may be among the many single parents who struggle to make ends meet each and every month. Many single mothers have no credit, slow credit, or even bad credit. Many single mothers are young and have not yet had a chance to establish positive credit history. There are different types of loans that you can qualify for as a single mother regardless of you past credit performance and bad credit history.

Personal Loans For Single Mothers

A bad credit personal loan is a loan that allows you to meet any needs that you might have. Perhaps you need money for major purchases like furniture or a computer. Or maybe you want to take a trip, pay for a class, or even buy a car. You can barrow amounts from $ 5oo up to as much as $ 15, ooo when you are applying for this kind of loan. Your personal loan can be ether secured or unsecured. A secured personal loan requires you to pledge collateral.

An unsecured personal loan does not require you to pledge collateral. However most single mothers do not have adequate collateral to pledge, and their only option is the unsecured version of the personal loan. To improve your chances for getting approved in the amount that you need, you can always ask a creditworthy cosigner to apply alongside you. This person can be a parent or other relative, friend, or anyone who will agree to pay your loan payments should you become unable to do so. Many lenders will allow you cosigner to be released from liability of payment once you have paid a certain number of payments on your loan.

Car Loans For Single Mothers

Single mothers who are in need of a new or used vehicle can qualify in most cases for a car loan. Because a car loan is secured by the car itself (or other vehicle), lenders are more lenient when approving car loan applications. A car loan of this type is usually funded for a period of four to seven years, depending upon the purchase price of the vehicle and whether or not you have a down payment. Having a down payment is the best way to purchase a car because it will make your monthly payments lower and easier to manage. Car loans are usually for $ 20,000 or less.

Cash Advance Loans For Single Mothers

Another option is the cash advance loan. This type of loan requires no credit check, making it the easiest to get loan not only for single mothers but for anyone with insufficient credit history. This loan is made for a short period of time, usually a month or less, and typically around the time of your next pay date. The only requirements to receive a cash advance loan is that you have a checking or savings account and a job that allows you to bring home a weekly, bi-weekly or monthly paycheck. Single mothers who receive benefits from Social Security, SSI, or other programs can also qualify for the cash advance loan. Cash advance loan amounts are available in amounts from $ 350 to $ 1,500, and the amount you can borrow will be based on your income.

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Mandatory Provident Fund

Ideally, retirement means a person retire from their regular career; Enter a new life span to review what they have contributed to their profession through their early and middle adulthood. When a person entering retirement, they must enjoy the rest of their life, the fruitful harvest gain from their previous efforts and pursuing a new goal with their spare leisure time.

The beautiful picture of retirement can only be achieved if you are being protected with a good retirement protection, such as provident funds or personal savings. Without these schemes, I am afraid the retirement will only be a start of a nightmare. In fact, before the implementation of the Mandatory Provident Fund scheme, only about one-third of the work of 3.4 million people have some form of retirement protection.

Contribution from the advancement of education level, numerous breakthrough in the medical treatment, modern technology to combat the natural disasters and so on, Hong Kong's population is living much larger than before, but also getting older in a fast tempo. Nowadays, already ten percent of our population is aged 65 and above. By 2016 the proportion will be 13 percent and one senior citizen in every 5 people by 2035.

Without some way is found of funding the welfare and health needs of the growing population of elderly, a massive burden will fall on the shoulders of the taxable working population. Their wages will be heavily taxed to meet the claims. Without sufficient financial resources, the scarce resources will jeopardize the well medical services and welfare we are enjoying now, something must be done to cope with the predicted situation.

The Pathway to Retirement Protection — Mandatory Provident Fund

The World Bank has outlined a framework of the protection for the elderly, so called 'three pillars of old age protection'. This recommended that old-age programs should protect the old and also promote economic growth. The three pillows recommended by the World Bank are
Mandatory, privately managed, fully funded contribution scheme.
Publicly managed, tax-funded social safety net for the old.

Voluntary personal savings and insurance.

The SAR government is operating a Comprehensive Social Security Assistance Scheme, which provides basic social security to the needy, and after much debt it was decided in 1995 that the Mandatory Provident Fund (MPF) Scheme should be introduced, there was a reasonable argument as to the Best system for Hong Kong. With the introduction of MPF, complemented by personal savings, Hong Kong will have in place all the three pillows for old age protection.

Mandatory Provident Fund Scheme Order requires all employees (irrespective of their status as a temporary staff or part time worker) and self-employed persons to join a MPF scheme under which contributions will be saved for retirement. The ideology is to ensure people are adequately provided for upon reaching retirement age.

Employer and employee each pay 5 percent of an employee's monthly salary into a privately run pension plan. The MPF law gives an employee a range of investment choices under an employer's MPF scheme. Generally speaking, without other circumstances, the member can only collect the lump sum of the MPF benefits when they attain the retirement age of 65.

Problematic MPF?

Mandatory Provident Fund scheme which begins in December 2000, this scheme represents a starting point for coercing individuals to plan for their retirement. Beside helping to provide for the retirement needs of millions of people, the MPF is likely to radically reshape savings habits and investment attributions and it will extend the pension umbrella to the remaining two million employed by about 250,000 small and medium sized companies.

Different retirement protection systems have their advantages and disadvantages. After careful consideration, it is generally accepted that MPF best suits Hong Kong 'needs, but as we know, no system is prefect, MPF is no exception, this controversial policy has drawn many criticisms.

Libertarians claim the system run contrary to the Hong Kong spirit, as individuals and firms are coerced into savings decisions that are better placed to make alone.

Other claim Many workers with high mobility are able to avoid taxation by constantly changing employment and a lack of information about them would make it difficult to capture them in the MPF network.

Many more violations and oppositions have also targeted the MPF, in the following paragraphs; I will divide it into different aspects and analyze these practices and oppositions, so that we can get more detailed picture about this far-reaching policy.

Protection for all?

MPF is adding a pillar for our retirement protection; If it is true, it will consolidate the foundation of an enjoyable retiring life and the retired people are no longer worried living under poverty. In fact, will it really protect all future retired people in Hong Kong? It seems to be the most challenging questions and controversial part of the MPF policy. Will the scheme really protect the elderly, unemployed, housewives and so on? I will divide the question into four parts — high income group, low income group, no income group and young, middle and old aged worker to look for the answer for the above questions.

High income people

Before we consider who will benefit the most from the scheme, we should know what you get out of the scheme depends on what you put in. As a result, low-income workers will enjoy less protection than the higher paid worker.

Many high-income people are working large companies and occupying the middle, high or senior position. Since they are specialized in their relevant profession and they possess some kind of expertise knowledge in their working field, their bargaining power in the labor market are relatively higher, so their companies and organization will provide them many welfare and special allowances in order to lure them Staying in the company. Nearly all of them will enjoy a pleasant retirement even without the implementation of the MPF, since many of them have significant amounts of personal saving, high value property or investment and existing pension fund.

Now the MPF has been implemented, both employers and employees will have to pay a minimum contribution of 5% of relevant income, this group of people seems to be much protected and secured from the policy.

Low-income people

As the points illustrated above, low income workers will enjoy less protection than the higher paid because what you get out of the MPF scheme depends on what you put in.

The greatest untruth of the MPF is that a gross 10 percent deduction from salaries, capped at a maximum income of $ 20,000 a month that can make a meaningful dent in funding old age. This mandatory contribution level of the scheme is a good basis to start with, but it is not enough. People will need to pay more to get a better life in retirement. A simple example will illustrate more about the concept, for example, a young man who starts to pay into an MPF ​​plan at 20 years old with an average income of HK $ 15000 per month. Assuming the investment grows with 5 percent inflation, after 45 years of contributions, he would receive just HK $ 771429, that would leave him just HK $ 4300 per month for the 15 years after retirement, if we assuming he die at age 80 (the average life Expectation in Hong Kong).

We should remember most low-income workers are approaching only around $ 10000 or below per month. After many years of contributions, they would receive just around $ 2000-3000 a month. Also due to their income would berely cover their monthly expenses, they are without personal savings, their retirement may not be funded in a pleasant way, the effectiveness of the MPF scheme may not create a beautiful picture for this group of people.

The MPF scheme not only can not provide an effective retirement protection for them, but also create some difficulties and hardships for them. Some unscrupulous employers are avoiding pay extra for the Mandatory Provident Fund scheme by slashing wages and making their staff become self-employed. Many of these problems came from the catering and construction industries.

Since Hong Kong are still recovering from the 1997 Asia financial turmoil, the most hard hit industries (transports, catering, restaurants, construction, manufacturing) are still struggling, most low income workers are working in these sectors (an estimated 500,000 people are working in The construction and catering industries, which account for about 17 percent of the total work in the SAR). Some employers were 'playing tricks' to avoid their financial responsibility because the MPF is an additional cost for these employers. They only cut staff salaries to save costs rather than taking risks to break the law.

Some restaurant owners treated part of their staff wages as special allowances instead of basic salaries in an attempt to lower the employers' contribution. Others effectively cut salaries by imposing an unpaid holiday arrangement on staff. Some construction firms had modified staff into self-employed contractors to avoid liability. The affected construction workers would have no longer enjoy the benefits of MPF or other staff welfare scheme.

Transport employees are also affected by the scheme. A survey conducted by the Container Transportation Employees General Union members found 86 percent had experienced some reduction in pay and benefits by employers using the MPF as the reason. The cutbacks include reducing pay and benefits such as bonuses, travel allowances and telephone payments, signing new contracts that waive past years of services without compensations. They were forced to register as a business so they have self employed status. Since it is very difficult to find a job in the current climate, so they have to accept the new arrangement reluctantly in order to survive.

All those unscrupulous employers are not only exploiting these low-income workers that are also under the effects of the SAR government to build a fund fund system for Hong Kong.

We can see clearly the long-term benefits are far from the low-income workers, but the immediate negative consequences that they should face now, so there is no doubt why the most opposite voice is coming from this sector.

Protection for Young, Middle and Old aged People

The benefits from MPF not only depend on the salary input, but also depends on the choice of funds. The choice of fund may be greatly influenced by the age of employee and what you can collect after retirement. For example, a young worker can afford to invest more in high risk, higher reward funds because if markets tank, they have a long time to recover. By contrast, an employee close to retirement can not afford to risk short-term volatility taking a chunk out of his capital. Young workers seem to be the most benefit from the MPF scheme, compare with the middle or near retiring aged people. The majority of low income earners in their 40s and 50s have no chance of achieving what pension planners call a minimum replacement rate sufficient to fund a pleasant retirement, for example, a man who works for the next 25 years on the median wage of $ 10000 a Month may get only $ 1700 a month upon retirement, based on commonly quoted return rate of two percent, less than social security assistance for a single person.

Finally, as workers can not take any money back before reaching 65, and there are investment risks involved. The private sector rather than the government will manage the funds. The MPF in no way safeguards every citizen's right to the security of basic provisions in life.

No income group

Many people have criticized the MPF scheme which starts in December 2000, neglects the elderly, unemployed and women particularly housewives, since the MPF requires 'employer' and 'employee' to contribute to the scheme, so the well being of the no income people will not Be guaranteed.

MPF scheme as a compromise package that does not serve the well-being of the most vulnerable. There are now 600,000 people over 65 and in 1996, one quarter of people over 60 were living below the poverty line, with a monthly income of under $ 2500.

Women will also remain stuck in a dependent role under the MPF scheme, less than half of the labor forces coerced by the scheme are women because many are either workers workers or housewives. When they get old, they can only expect to relish on their husband, if they have one or obtain comprehensive social security assistance.

At present, Hong Kong is operating a Comprehensive Social Security Assistance Scheme, which offers basic social security to the needy. With the introduction of MPF, complemented by personal savings and CSSA, Hong Kong will indeed have in place all the three pillars for old age protection. In fact, it is far from saying that the scheme provides an effective retirement protection for all and easily believes the problem of elderly poverty will be eradicated.
Burden for investors in Hong Kong?

Hong Kong acts as a financial center in the world and playing a significant role in the Asia. The implementation of MPF will certainly affect the investors, no matter the multi-national investors, big business entrepreneur, small and medium sized enterprises.

Investors of big business

Big companies in order to recruit the talents from the labor markets, many of them have been offering various welfares for their employees, these including a well-sound pension system. Before the implementation of the MPF systems, many big companies have start selecting their company's MPF provider. For example, Swire Pacific said the process of selecting the company's provider began two years old. As one of the Hong Kong's largest companies, Swire are operating companies, such as Cathay Pacific Airways, hotel, trading, marine and properly-development and employing 25000 employees, for this kind of big companies, it is important to have a provider with a Sound administration system to deliver pension services to all their employees, since employees are the largest assets for these big business operators.

Large companies appeared to be concerned about their employees' statements when choosing a provider, it can reflect large companies seem to support MPF scheme and it come along with their existing pension policy, it seems not to create financial burdens for this kind of companies compare with Small and medium sized companies.

Investors of small and medium sized enterprises (SMEs)

Coming at a time when small and medium firms are struggling back into the black after the financial crisis, it is not surprising that the MPF is off to a shaky start. There is no doubt that the MPF presents an extra financial burden for companies that work on narrow profit margins when these kinds of companies were badly hit by the Asia financial turmoil. Small and medium sized businesses (SMEs) have protested vociferously over the MPF's introduction, insisting they can not afford it with the economy still recovering from recession.

Although MPF will extend the pension umbrella to the two million, employed by about 250,000 small and medium sized companies, the financial burden seems to be unbearable for the investors.

For small business investors, they are reluctance to join the scheme is not just about the financial burden. They also resented the time consumed by MPF decision-making and paper work because many of them were far too busy with the day-to-day business of running the firm to take on extra paper work.

How MPF scheme affects the Hong Kong 'economy?

MPF not only will have far reaching effects on the fund-management industry, service providers, but also the general economy. Since MPF is an investment programs, it will increase the pool of institutional funds invested in the SAR, broadening and deepening the financial markets, promoting their efficiency and theby economic growth, it will bring positive charges for financial market.

On the other hand, some people criticize the MPF scheme will eventually upset the flexibility of Hong Kong because workers can not take any money back before reaching 65 and there are investment risks involved. This compulsory saving scheme, unable an employee who leaves a company can get cash in a lump sum or use it to buy property or whatever and invest in other areas.

Conclusion

Although it is far from saying that MPF provides an effective retirement protection for all and older poverty will be eradicated, it really encourages people to save for their old age. No schemes are perfect, the MPF is no exception, but it is the scheme most suitable for Hong Kong 'needs. Since Hong Kong has a well-established and sound financial services sector. A privately managed retirement system under prudential regulation and oversight is the most effective and secure way offer retirement protection to the work. Also under a free competition environment, it tends to increase efficiency and reduce costs of operating the MPF scheme, which will benefit scheme members extremely.

Nowadays, a large part of the social welfare expenses are spending on the Comprehensive Social Security Assistance (CSSA), in the long run, MPF scheme may reduce the financial burden of CSSA, spare welfare expenses can be spent on other social welfare areas, every Citizens will benefit at large.

The scheme may be viewed with some skepticism at the moment, but after people have a chance to see the plan in action, attitudes towards long term saving and retirement should change. Then retirement could be something to look forward to with pleasure, rather than worry. But one thing should be bear in mind, our government should also take care of the most vulnerable people in our society as the paragraphs mentioned above, provide them with appropriate assistance, especially the low income people. Only with that, Hong Kong will be a better, fairer society for everyone to live in.

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Seven Cover Reviews of the Best Travel Trailer Covers Sold on the Internet and Retail Stores

Usually an outdoor enthusiasts begins to show interest in a travel trailer when they feel that they have outgrown the “sleeping in the outdoors or tent” phase and are ready to enjoy the luxuries of home and yet still have that feeling of living & camping outside by the ocean or lake or in the mountains or desert. Purchasing a travel trailer is an investment that the RV owner hopes will last for many years and numerous excursions. Travel trailers can and will last for many years, sometimes decades. The interior will keep its looks as long as it is protected from sunlight exposure. If an RV is left uncovered the sun’s UV rays will beat down on the camper and fade the interior upholstery, curtains, blinds, carpets, and bedding. The exterior will show its age a great deal faster than the interior. In only a matter of years a travel trailer that is left unprotected from the weather, will exhibit quick and steady exterior damage when the decals fade, crack, spilt and eventually wear off. The plastic window and door seals will turn gray to black in just a year. The welded seams that connect the sides will expand and contract with every snow fall because freezing/melting cycle that occurs when the snow melts on the roof crevices but remain in the crevice, then re-freezes in the tiny, microscopic crevices. These seams will expand inevitably with the freeze cycle that causes a widening of the connecting seams. This constant cycle of water freezing, melting and re-freezing will eventually cause problems with the roof which results in very costly repairs.

The easiest way to prevent the aging process on your travel trailer is to cover it with the best RV cover for the area in which the travel trailer will be stored and for the time in which you will be storing your camping trailer. With so many RV covers on the market how are you going to be able to find the cover that you need?

For the most part, all of the deluxe RV storage covers discussed in this article are sold on the Internet (as well as Walmart, Sears, and Cabelas) and are basically made of the same material (polypropylene) with few differences. Advertised as deluxe winter snow covers these travel trailer RV covers, (Expedition, ADCO, PolyPro 3, Camco and CoverKing) are generally made of triple-layered breathable non-woven polypropylene. The roof/top of the cover is made to accommodate the AC on the roof and is usually large enough to extend over the sides to protect the awning. At the joining seams where the roofing top meets the single layer of polypropylene sides there are vent flaps that allow the cover “to breathe”. These vents prevent wind friction and moisture buildup that would cause mold and mildew to develop. The sides have several long zippered entry panels that will allow you access to your travel trailer during the storage period. The entire cover is usually secured with an integrated tie-down strap system with adjustable click-close buckles and tension panel flaps in the front and back of the travel trailer that reduce cover stress when tightening or loosening the straps on the cover. This gives the RV cover a semi-custom fit. The major differences between all of these winter snow covers comes in the price and the length of the warranty of the product.

Winter Covers for Travel Trailers 20-33 ft Cost & Warranty

Expedition by Eevelle Cost: $205 – $321 Warranty: 3 years

ADCO Designer made with Tyvek Cost: $262 – $365 Warranty: 2 years

Poly Pro 3 by Classic Accessories Cost: $273 – $341 Warranty: 3 years

Camco Ultraguard Cost: $262 – $415 Warranty: 2 years

CoverKing 600 Denier Presidium Cost: $375 – $575 Warranty: Repair for 1yr

When a travel trailer is stored through the summer in the extreme Southeast and Southwest, the cover must be made from an extremely rugged durable woven material. Travel trailers that are in the sun year-round must have a cover with ultimate UV protection. Winter snow covers (like the Expedition, PolyPro 3, Camco Ultraguard, CoverKing Presidium & the Tyvek ADCO cover) disintegrate within a few short months if they are used to protect the RV through the summer. The non-woven fabric cannot stand up to the intense UV rays in this area of the United States. There are two RV covers made of woven material. The first cover that is made with the newest technology in UV block protection is called the PermaPro RV cover made by Classic Accessories. This RV cover is backed by the newest technology in extra strength UV block protection. The PermaPro cover is made of a light weight extra strength ripstop fabric that is tear resistant with nylon reinforcements in the material. The fabric resembles that used in parachutes and athletic wear. This water-repellent fabric repels rain and snow to make it an all season protective RV cover. This travel trailer cover ranges in cost from $375 – $505 and is backed by a four-year warranty.

The Goldline RV cover sold by Eevelle has long been recognized as the best RV cover by customers and dealers alike. The Goldline RV covers are designed to outperform every other RV cover in all the critical categories of RV protection- strength, durability, water repellency, etc. The extra strength yet supple Goldline Tru-weave woven fabric can handle the strongest winds and can stand up to the extreme UV rays of the sun as well as being a water-repellent rain & snow semi-custom storage cover. This travel trailer cover ranges in cost from $455 – $578 and is backed by a five-year warranty. The Goldline is also the only RV cover made for small travel trailers (10 – 20 ft.) as well as the extremely large ones (up to 46 ft. long).

PermaPro and Goldline are the only extra strength travel trailer covers that can be used as summer storage covers. Their woven design stands up to the winds that accompany winter and foretell the change of seasons. Both of these covers are truly all season RV covers that will protect the investment you made into your travel trailer as well as all the upcoming vacations & excursions you will take well into the next several years.

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Parasailing Sites in the Philippines

The Philippines, which is known for its thrilling tourist attractions and colorful festivals, is slowly making a name for itself as a paradise for water sports enthusiasts. An emerging water recreational activity in the country is parasailing. With its rich water resources, the Philippines is an ideal place for this high-flying adventure.

Currently available in posh resorts in the Bahamas, Hawaii, Guam, and Australia, parasailing is steadily gaining more following in the Philippines due to its inclusion to various vacation packages by offered resort and vacation rental operators across the country.

Parasailing, which is also known as parascending, allows an individual to stay in the air for several minutes while strapped in nylon harnesses. A boat usually carries the parascender into the air. The sport appears difficult but experts insist that parasailing does not need any special skill other than sheer courage. Enjoying the high-adrenaline experience is one of the common tips shared by experts to beginners.

Here is a guide on where to find the best parasailing sites across Luzon, Visayas, and Mindanao.

Mactan Island

Situated on the southeast of Cebu, Mactan is one of the leading parasailing destinations in the country. Most accommodations in the island entice tourists with their various water recreation facilities where you can go parasailing, jet skiing, scuba diving, and sailboating. While in the air, the parascender gets a fascinating view of the islands of Bohol, Sta. Rosa, Olango, and Cebu. Pristine beaches and rich marine resources have placed Mactan on the Philippine travel map.

Boracay Island

Parasailing adventures also await holidaymakers in Boracay, which is famous for its white sand beaches. A brave soul is treated with a bird's-eye-view of the whole island. While most resorts in Boracay arrange parasailing activities for their clients, tourists can also hire the services of hawkers who offer much lower prices. A 15-minute parasailing escapade in Boracay usually costs between Php 1,500 and Php 2,500. Parasailing allows tourists to get their energy flowing in enjoying various events and activities in Boracay.

Subic Bay

Another favorite parasailing site in the Philippines is the Subic Bay in Zambales. Since it is just a couple of hours away from Manila, most water adventurers in the metro quench their thirst for parasailing and other recreational activities in Subic. Parasailers get an unforgettable view of the Subic Bay and Grande Island. Other water activities in Subic include scuba and wreck diving, yachting, and kayaking.

Coron Island

The island paradise of Palawan has everything for every tourist, including parasailing. In Coron, a famous travel getaway in the province, one can enjoy a view of the island around 400 feet above the water. The island, which is also famous for its pleasant rock formations, is considered the best wreck diving site in the Philippines. Wreck dive sites are found in a depth as shallow as ten to 30 feet and as deep as 120 to 140 feet.

Local Philippines is your travel buddy. We have information about the destinies, how to get there, what to do while in the area and more! Destinations in the beaches or in the mountains, destinations under water, destinations right at the middle of the urban hub, name it and Local Philippines will most likely feature it.

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Important Issues For Green Card Holders to Remember and Consider When Traveling

Clients who are Green Card holders (ie permanent residents) frequently ask me about issues that need to be aware of when traveling internationally, outside of the United States.

Here are some things to consider to minimize the potential for problems at the border. After a long intercontinental flight, nobody wants to find themselves in a position of being subjected to lengthy questioning by CBP officers at the airport. Particularly in situations where the Green Card holder has spent significant time (more than 6 months, typically) outside the US, there are potential pitfalls one needs to be aware of – or risk risk losing the highly-prized Green Card. CBP, interestingly enough, in its operations manual, has some good guidance on what immigration inspectors are to consider when inspecting Green Card residents seeking re-admission into the US

Admission, generally The CBP officer shall admit a resident alien returning to an unrelinquished domicile, if not otherwise inadmissible, upon presentation of an unexpired Green Card (I-551), a reentry permit, refugee travel document (indicating lawful permanent residence), or Temporary evidence of LPR status such as an Travel Statmp (or ADIT stamp).

A returning resident alien is not required to present a valid passport for reentry into the US, although most will have one, since a passport is often required for entry into a foreign country. When presented, the passport is normally annotated with "ARC", and the alien's "A" number should be written on the page with the admission stamp.

Admission after prolonged absences A Green Card holder, who has been outside the United States for more than one year (two, if presenting a reentry permit), may be seen by CBP to possibly have abandoned residence. Other indicators of possible abandonment of residence are:

(1) employment abroad,

(2) having immediate family members who are not permanent residents,

(3) arrival on a charter flight where most passengers are non-residents with return passage,

(4) lack of a fixed address in the US, Egypt

(5) frequent prolonged absences from the United States.

In questionable cases, it is appropriate for CBP to ask for other documentation to substantiate residence, such as driver's licenses and employer identification cards.

Green Card holder without Green Card? Lawful permanent residents (LPR) lacking evidence of alien registration because it has been left at home or in a safety deposit box, may obtain from CBP a visa waiver, with fee, or defer the inspection to another CBP office local to the Resident's home in The US

If the LPR claims the card has been lost or stolen, the POE may accept a Form I-90, Application to Replace Permanent Resident Card, with fee. These actions may be considered once the identity of the LPR has been confirmed, preferably by checking against the data contained in the CBP computer systems.

A LPR requesting a visa waiver must complete a Form I-193, Application for Waiver of Visa or Passport, if otherwise admissible. The applicant requesting the waiver is to review the information recorded on the printed form for accuracy and sign where indicated. If the waiver is approved, the LPR is to be given a copy of the Form I-193 and be acknowledged as a returning resident. If a waiver is denied, the applicant may be placed in removal proceedings before an immigration judge.

CBP officers can also use something called "deferred inspection". This is usually limited to a Green Card or Visa holder who:

O will be able to produce the requisite document within a few days; Egypt,

O claims to have lost or had the Form I-551 stolen, is unable to pay the Form I-90 fee at the time of initial inspection and has not been previously deferred for presentation of the Form I-551 document.

The LPR will be required to file a Form I-90 with US Citizenship and Immigration Services (USCIS) within the next 30 days.

Conditional Residents A conditional resident is generally admissible to the US if applying before the second anniversary of admission for conditional residence. The conditional resident may also be admissible if he or she has a lettering letter (or "transport letter") from a US Consulate, has been stationed abroad under government orders, or is the spouse or child of a person stationed abroad under government orders. Otherwise, the applicant for admission as a conditional resident must have filed a joint petition or an application for waiver, Form I-751 (marriage-based cases) or Form I-829 (investment-based cases), in the US within the 90 Days before the second anniversary but not more than 6 months prior to the application for entry.

Once I-751 has been filed, the applicant will receive a receipt notice (I-797 Notice of Action) from USCIS, extending the conditional residency status for another year, allowing travel.

If none of those conditions exist, the inspector may defer the applicant to file Form I-751 or I-829 if there is a reason to believe the service will approve a petition or waiver. If the applicant is not admissible, CBP has authority to place him or her in removal proceedings.

Question of "Meaningful Departure" When examining a Green Card holder who has spent significant time abroad (usually more than six months), when there is a question as to whether the LPR may have abandoned his / her US residence, the CBP inspector has to Evaluate the situation and make a determination as to the LPR's intent and the nature and reason for the prolonged absence from the United States. Prior to 1997, if a lawful permanent resident was believed to be inadmissible, immigration inspectors had to first make a determination which his / her absence was "meaningfully interruptive" of permanent residence. Later revisions to immigration laws have formalized a 'test' for immigration inspectors to apply in this situation. Under this test, a lawful permanent resident is NOT considered to be seeking admission, unless the alien:

O has abandoned or relinquished that status;

O has been absent continuously for more than 180 days;

O has engaged in illegal activity after departing the US;

O has departed under legal process seeking removal;

O has committed certain criminal offsets;

O is attempting entry without inspection; Egypt

O has entered the US without authorization by an immigration officer.

If CBP believes an LPR may be inadmissible or no longer entailed to lawful permanent resident status, CBP should refer the alien for removal proceedings if a deferred inspection is not appropriate.

Special Rules for Dependents of US Service Members Spouses and children of US Armed Forces servicemembers, or civil employees of the US Government, are exempt from many normal requirements for returning residents. If a dependent is a temporary resident, and the period of conditional residence has expired, CBP should admit the person and advise to file Form I-751 within 90 days.

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How to Properly Insure Your Concrete Pumps

The business of concrete pumping comes with many challenges, one of them being being perfectly insured when something goes wrong. Many concrete pumping companies have pumps and assume they're automatically insured under their general liability policy, unfortunately they are not.

Trailer concrete pumps should be insured under what is called an inland marine floatater. This type of insurance policy provides comprehensive coverage for your pump, insuring it from perils such as theft, vandalism, and damage you may cause it in the event of a car accident. This is similar to the coverage you may have on your car.

Just like any other trailer, liability coverage is automatically extended from the vehicle to the trailer it's towing. For example: If your trailer sideswipes another vehicle, your auto policy will provide liability coverage to repair the vehicle you damaged. Repairs will only be provided up to your policy limits. Keep in mind if the auto policy your truck has not include business coverage the insurance company will most likely deny your claim. Make sure you have a proper commercial auto policy before you toward anything for business use.

What about concrete pumps you can drive, how are they insured? Because these type of pumps are self-propelled they would need to be insured under a standard commercial auto policy. Make sure to mention any custom equipment you have to your agent. Just like on any auto policy custom equipment should be stated as such and approved into the coverage limits. Custom equipment can include any aftermarket stereo systems, hose reels, ladder racks, etc.

Always provide the replacement cost you'd like if your pump is stolen and ask for it to be stated in your policy. This way you'll be sure you have enough to replace the pump in the event of a loss. Some carriers provide the actual cash value for your pumps without otherwise requested. This means you'll get the replacement cost minus depreciation to compensate you on your pump. Actual cash value may not be enough for you to buy another pump if yours is damaged, this option is not recommended.

Always consult your insurance agent before making any final decisions on your insurance policy. Each concrete pump is different and may have specific needs. Keep these points in mind when shopping for your insurance policy and you'll be well on your way to protecting your business in the event of a loss.

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Characteristics of Universal Life Insurance

As we mentioned in the previous article, universal life (UL) was introduced in 1981-82, in response to a historically high interest environment and a consumer awareness of the value of self-directed investments because traditional insurance could not compete with short-term interest rates.

Here are some characteristics as follow

1. Account Value

The account value of a universal life plan is the sum of the gross values of all the investment accounts within the policy, including income, after deductions for the current month expenses.

2. Cash Surrender Value

The cash surrender value of a universal life plan is the current account value, less outstanding loans and surrender charges. Surrender charges are usually based upon a multiple of the minimum required premium for the policy back-end charges are larger than front-end charges.

3. Premiums & Contributions

Premiums are those amounts needed to pay the cost of insurance charges and other expenses for the policy. Deposits are those excess amounts that are of a pure investment nature.

4. Death Benefit Options

The amount of death benefit payable under a universal life policy is based upon 1 of 4 different options

a)Level death benefit: Level coverage throughout the lifetime of the policy.

b) Level death benefit plus cumulative gross premiums: Death benefit increases by the amount of each gross deposit to the policy.

c) Level death benefit, indexed: The amount of death benefit increases, yearly, by a predetermined percentage.

d) Level death benefit plus account value: The total amount of death benefit is always equal to the initial face amount, plus the gross account value. This is the most popular chose by 90% of universal life insurance policies’ owners because

the gross account value is tax free.

5. Premium Flexibility

The premium deposits, plus accrued investment income, must be sufficient to pay for all expenses and deductions, so as to keep the policy in force, tax exempt life insurance contract, flexible premium.

Universal life is not for every consumer

It’s flexibility tends to be reflected in much higher administration costs than are found in traditional whole life plans and the variable nature of the plan may make it unsuitable for those clients wanting guarantees

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

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Insurance Claim Supplements – How to Submit Claim Supplements

A claim supplement is a claim for additional repair or replacement costs. Supplements are commonplace in the claims process. However, if you are a policyholder unaware of your policy rights, you could be walking away from hundreds or thousands of dollars that you are entitled to collect.

Claim supplements usually occur after a policyholder submits a claim, gets paid and gets the repairs or replacements completed. Then, additional damage is discovered some time later.

Many people erroneously think that, once the claim is closed, it cannot be re-opened. And, insurance companies and their adjusters usually don’t rush to tell you how to submit a claim supplement. So, what to do? Let’s look at car insurance claims and property insurance claims.

For any kind of supplemental claim, you must contact your insurance company and give them your original claim number. The best way to notify the company is in writing, sent Certified Mail. That way, you’ll know who signed for the letter. The insurer will have to re-open the claim. You might get the same adjuster as before, but maybe not.

Car Insurance Supplemental Claims

Lots of supplements happen when cars are getting repaired. Many times, hidden damages are discovered when the body shop begins dismantling the car. So, while the insurance company may have issued payment to the body shop from the original repair estimate, they will issue a second check for the supplemental repairs. Happens all the time, no big deal.

However, sometimes post-repair problems don’t show up right away. A good example is the Air Conditioning system. If you have a car wreck in July, you might not notice that your heater is malfunctioning until fall or winter. But when any damages are discovered that can be directly related to the original insured loss, you can submit a supplement. Simply document the damages and their cause and send the supplement to the insurance company. No additional deductible is assessed, since you already paid it once.

Property Insurance Supplemental Claims

Homeowners, Renters or Business insurance claims can find a need for a supplemental claim for some of the same reasons found in car insurance claims. Seasonal issues can bring up damages related to the original loss. But, some other issues might present themselves. You may have an expert’s report that shows additional damage attributable to the original loss. Your contractor may have found hidden damage that must be repaired. In any event, carefully document your claim and submit it to the insurance company.

Be sure that you are collecting all the money you are entitled to collect. Use supplemental claims whenever your claim requires it.

If you have experienced a property loss, whether fire, wind, flood or other, you need to know winning insurance claim strategies. The insurance company will not tell you the claims process, but I will. I will show you how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, go to the website listed below.

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