It is said that one does not truly die as long as he is still spoken of. If you leave a strong legacy, you will live on forever in the hearts and minds of those around you.
Since a statistically significant number of us aren’t going to find the cure for cancer, we should be focusing on leaving something behind for those around us. Building a financial legacy that provides stability for our loved ones – and our community – is well within the reach of every Malaysian.
3 steps to build your legacy
Nothing can replace the priceless memories with your loved ones, but you can also take steps to prepare for what’s to come and ensure that your legacy takes your loved ones one step closer towards financial security.
1. Don’t pass your debts to your family
The simplest legacy you can leave behind is being debt-free; allowing your loved ones to continue on without the burden of taking on your unfinished payments. Yes, it’s true that debt is not passed on to your next of kin; but that doesn’t mean that they will not have to deal with your loans.
Your estate (assets) is first used to settle your existing debts when you are no longer around. This means the more debt that you have, the less financial assets will be left to pass on to your next of kin.
On the other hand, if you only had RM70,000 in savings, all of it would be used to pay for the loan. After which the bank would offer your family the option to take on the rest of the loan. If they are unable to service it, the bank would then have to foreclose on your property.
The first step to building a financial legacy is to create a stable base. It should go without saying that life insurance or a Takaful plan goes a long way to meeting this goal. Having a financial safety net ensures that your financial legacy stays intact if anything untoward happens to you.
Not adding to your loved ones’ financial burden is a good first step, but it is not the only thing that you should do.
2. Help your children enter adulthood
Providing the best for your child can be expensive. Food, clothes, medical bills, and education all cost a lot of money; yet you still want to give them the best chance of success in life.
This is why you hear of some parents helping their children with their first car, or home. It all starts by putting a little money aside each month to make that special gift possible.
But how much do you need?
Price of a Proton Saga Standard AT 2019 – RM 35,800.00
Amount of time to save – 21 years
Amount to save each month – RM293
By sticking to the plan, you could potentially be able to afford a brand new car for your child just as they graduate from university. Giving them not only a means of transportation to find work, but also the added financial freedom of not having to maintain a car loan.
You could also use that same amount to begin growing your child’s wealth. Instead of saving, start investing that small amount each month. It could be unit trust, REITs, or even just a simple FD. Regardless of your choice, this will help leave a worthy financial legacy.
3. Support a worthy cause
Leaving a legacy is not only limited to your own family. Some of the greatest legacies are those left to make the world a better place. Every little bit helps, and you don’t need to be going out of the way to singlehandedly bring world peace.
Perhaps you believe strongly in a cause like saving the Malayan Tiger or providing fresh water to indigenous people. Or perhaps you want to help develop the performing arts and give a future Oscar-winning director his/her first start.
There is always a charity or NGO that needs help keeping the lights on, or to keep trying to improve the world. Many of these often go underfunded due to lack of financial support to raise awareness.
Philanthropy is not only limited to the super rich – it’s an aspiration that just about anyone can do. What is even better is when your legacy planning allows you to allocate an additional amount gifted to your chosen charity organisation after your family has already been taken care of.
How do you do it all?
It’s easy to talk about leaving a financial legacy if you happen to have a good income. However, don’t become discouraged even if you are finding it difficult to save money. After all, even small legacies will be remembered by those they benefit.
Create more than loving memories with A-Life Legasi from AIA Public Takaful
This is a Takaful plan designed to help everyone leave a worthy financial legacy. A-Life Legasi offers to pay out twice the value of your coverage amount if you pass away due to an accident, and up to 600% more if you pass away due to a natural disaster. Furthermore, the A-Plus Infaq rider makes it possible for you to embrace a charitable cause as part of your legacy.
With this, you can carry on knowing that your loved ones and even the charity you are passionate about will be well taken care of should anything unfortunate happen to you.
The benefits also extend to you while you are still around and contributing to the fund. If you’re saving for major life milestones, the Akaun Legasi can be a top up that will help get you there.
How does Akaun Legasi reward good financial habits?
- AIA Public Takaful will pay 2% of your annual Takaful contributions into your Akaun Legasi every two years, provided that you have been making your monthly contributions on time – without any outstanding amounts. This starts from your second certificate year.
- An additional amount of hibah (gifts) will then also be credited to your Akaun Legasi according to the following table:
- While it’s not compulsory, fifty percent of the amount in your Akaun Legasi can be withdrawn when you celebrate a milestone in your life (graduation, marriage, childbirth, buying your first house, wedding anniversary, or retirement).
- You can use this to top up your retirement funds, help start an investment account, put a downpayment for your child’s first car, or just donate it to charity.
At the moment, AIA Public Takaful has partnered with both MERCY Malaysia and the National Cancer Society of Malaysia to facilitate this process. However, policyholders will be able to donate to other charities (with PB Trustee as the service provider).
With AIA Public Takaful’s A-Life Legasi,. Philanthropy is not just for the super wealthy, it can be done by anyone with the right planning and support. So think of not only for securing the well-being of your family, but perhaps also for making the world a better place.
To find out more, check out A-Life Legasi or talk to an AIA Public Takaful Life Planner about it.
