4 Ways To Create Passive Income

Need some help to stay financially afloat? Here are a few ways you can start raking passive income to maintain your lifestyle.

Tired of cutting back on your expenses just so you can stay within your paycheck? Wouldn’t it be great if you could have a continuous stream of income to supplement your salary every month? Think about it.

You can pay your bills on time and you can splurge once in a while on fine dining or buying that pair of shoes. Even an extra RM500 or RM1,000 a month will make a huge difference in your monthly budget. You may even be able to finally save on your emergency fund!

Before you scoff in disbelief, passive income is not a myth. Investment aside, here’s how you can put a little extra into your pocket without working around the clock:

Let others rake in the cash for you

There are many different ways to generate passive income, either from the same customers, or from the sales of a product to new customers.

Some of the most common ways to start generating residual income are by being an insurance agents or a network marketing representative.

Being an insurance agent, you can continue to earn commission from the same policyholders as they renew their insurance policies. Similarly, being a network marketing representative, you just need to sign up enough downlines and let them start earning from you.

Earn like a royal

Some of the common ways to earn royalties long-term for a piece of work is by publishing your own book or putting up your photos on stock photo websites like GettyImages or Shutterstock.

The same book or photo you put up can continuously bring in cash for you as you get paid a royalty whenever someone buys your images or book. Publishing a book has become really easy with Amazon.com where you can just upload your book in an e-book form.

Many of us are photographers at heart, don’t let those photos go to waste, put them up to be used as stock photos, you’d be surprised at how it could work out for you. Even your Instagram photos could be put to use with sites like twenty20.com that sell these photos as art!

Create and let others sell

For the more tech savvy, you can even consider creating a smartphone application to be sold on Android and iOS platforms. This can prove to be a long-term money making channel. The maker of Flappy Bird, Dong Nguyen, was reportedly earning US$50,000 (RM163,281) a month on ads alone!

If you like most who find it increasingly hard to maintain their lifestyle through their salary, passive income is a good way to get onto the road to financial freedom. Some money making avenues require more work than others, but the return on your time and minimal investment can pay off for years to come. They’re not all MLM schemes and you can have a secure financial future for you and your loved ones, if done right!

Open a shop online

The internet has made it even easier to set up shops to earn money on the side.

One quick was to set up shop is by selling limited edition products online.

Make use of sites like eBay.com or Mudah.my to put up some unusual or limited edition goods and let the money roll in.

Setting up a blog and building up a good traffic to your page can generate you income, too. With enough traffic, you can even start earning money from advertising.

http://www.imoney.my/articles/4-ways-to-create-passive-income

Almost all Malaysians on MH370 had life insurance – Bernama

The Life Insurance Association of Malaysia (LIAM) said that 47 of the 50 Malaysians on board Flight MH370 had insurance policies.

The figure comprised 38 passengers and 12 crew members, and their life insurance policies were with 14 companies in Malaysia.

LIAM President Vincent Kwo said about six non-Malaysians are also insured with its member companies.

"Family members or next-of-kin of policyholders can contact LIAM at 03-26916628 or email liaminfo@liam.org.my, if they wish to find out which insurance company their loved ones were insured with," he said in a statement today.

Meanwhile, in a separate statement, AIA Bhd said it would get in touch with the families of its policyholders on the flight.

"We assure the families that we will get in touch with them to expedite the processing of the life insurance claims within the next 24 hours.

"The affected family members can also contact 1300-88-8860/70 for further assistance or email members@aia.com," said Chief Executive Officer Bill  Isle.

Flight MH370 went missing en route to Beijing from Kuala Lumpur. It was disclosed yesterday that the flight with 239 on board had plunged into the Southern Indian Ocean with no survivors. – Bernama, March 25, 2014.

Why Takaful Is Needed in Islamic Finance

By Dr. Faleel Jamaldeen from Islamic Finance For Dummies

Takaful is a new spectrum of insurance products that has emerged in recent decades. These products are based on principles, features, and structures that set them apart from conventional insurance.

Before takaful appeared on the market, many people in the Muslim community believed that trying to reduce risk went against Islam. Their perception was that because every worldly action comes from Allah’s will, people shouldn’t try to reduce or avoid the results of those actions.

Although Islam does prohibit attempting to avoid risk altogether, it doesn’t prohibit reducing risk.

The elements of uncertainty (gharar), gambling (maysir), and interest (riba) make conventional insurance products prohibited risk-sharing instruments for Muslims.

Uncertainty (gharar)

Conventional insurance is a contract between the insurer and the insured, but this contract doesn’t explicitly describe its outcome for either the insurer or the insured. And sharia doesn’t allow the sale of contracts that are based on uncertainty.

The conventional insurer has the assurance of receiving a premium each month but faces uncertainty regarding when and whether the insured will make a claim. Likewise, the insured may or may not incur losses or damages to prompt a claim.

In addition, when an insurance claim does occur, neither party knows in advance how much may be paid to the insured (or even whether the insurer will pay a cent). The insurer considers many variables when documenting an insurance claim, so predicting what the outcome may be for either party is impossible.

The bottom line: Islamic scholars agree that conventional insurance contracts are based on uncertainty, which means they aren’t sharia-compliant.

Gambling with premiums (maysir)

Going hand-in-hand with uncertainty is the fact that conventional insurance has characteristics of gambling. The conventional insurer receives huge amounts of money from the insured in the form of premium payments.

Will the insurer be able to hold onto that money? Or will some sort of disaster strike (tornado, wildfire, flood . . . pick a weather event) that results in the insurer paying out every dime of the premiums and then some?

When few claims are filed, the insurer wins (and the insured lose their premiums). When loads of claims are filed, the insured get some payback for their premiums (and the insurer may be in trouble).

Most Islamic scholars generally agree that conventional insurance products involve gambling and aren’t sharia-compliant.

Collecting interest (riba)

Another reason that Islamic law prohibits conventional insurance products is that their transactions involve interest. Interest generally comes into play in two ways:

• Insurance companies need to make sure they can pay their customers’ potential future claims, so they rarely let the premiums they collect sit in a cash account. Instead, they invest the premiums in interest-bearing fixed income instruments such as conventional bonds.

• If the insured files a substantial claim, she may receive an amount from the insurer that totals more than the premiums she has paid. Most Islamic scholars consider any excess amount paid by a conventional insurer to be interest.

• Keep in mind that someone who purchases a takaful product can also receive an amount that exceeds the total contributions she pays in. In that case, the excess amount is not considered interest.

  The difference is not just semantics; the difference lies in the structure of a takaful fund and the transfer of risk (which is quite distinct from a conventional insurance product).

  
  

  http://www.dummies.com/how-to/content/why-takaful-is-needed-in-islamic-finance.html

  
  

MH370: Insurers of flight MH370 brace for payout

KUALA LUMPUR: The consortium of insurers of Malaysia Airlines Flight 370 led by Allianz are bracing themselves for a huge payout in respect of insurance claims connected to Malaysia Airlines flight MH370 from KL to Beijing which has been missing since March 8.

The biggest aviation compensation claims ever made were related to the 9/11 attacks in the United States, with an average payout of US$2.13 million per passenger.

Previously, one of the largest insurance payouts for an  aviation claim was for the American Airlines flight which crashed in Queens, New York in 2001 killing all 265 passenger and crew. Insurers paid a total of US$600 million for the insurance claim involving the crash.

“The loss of Malaysia Airlines Flight MH370 will likely mean big payouts from several insurance companies this year,” said an aviation analyst at a local stockbroking firm.

Insurers’ making up any consortium for this purpose would normally not disclose the amount of insurance taken because it could lead to costly litigation.

"Usually, the insurers and the airline company will not disclose the underwriting value, given the concerns over an extremely high claim from lawyers," said Hao Yansu, dean of the School of Insurance at the Central University of Finance and Economics who was quoted by China Daily.

Allianz confirmed on March 11, that it was the main provider of insurance for the aircraft itself, as well as the liabilities attached to the passengers and cargo.

However, the company declined to comment on the extent of its exposure or identify other insurers with exposure.

The insured value of the aircraft could amount to around $100 million, while the liabilities and compensation typically amount to a far higher amount, Reuters reported.

"The compensation will dent the financial performance of insurers. But such claims are rare events, thus have a limited impact on them in the long run," Hao said.

As both Malaysia and China are the contracting countries, the missing airplane is covered by the Convention for the Unification of Certain Rules for International Carriage by Air.

Malaysia became a signatory for the Montreal Convention which governs ticketed international travel in 2008. China signed in 2005.

The claim for the loss of the aircraft could also be huge. The current listed price of a Boeing 777-200ER is US$361.5 million, according to the Boeing Co website.

Further compensation from Malaysia Airlines depends on the reason for the accident. If it is established that the disaster resulted from a mistake by the airline, the compensation could be huge.

There were 154 Chinese passengers on board the missing flight  and  most of the Chinese passengers on the plane had purchased accident or life insurance policies, according to major Chinese insurers.

Ping An Insurance has the hardest passenger exposure, with at least 38 names on the aircraft manifest carrying the company's insurance policies, and possibly 15 more. China Life has confirmed having insured 30. Neither company has commented on the potential compensation amount involved.

China Pacific Life Insurance has confirmed 16 clients on the plane, with total compensation at about 5.44 million yuan .

"If it turns out to be a terrorist attack, some travel insurance policies may not apply. But the families of those who purchased life or accident policies would get compensation under any circumstances," Hao said.

Meanwhile Malaysia Airlines said it has sufficient insurance coverage to cover any legal liability arising from Flight 370.

In an email interview, MAS revealed that it had placed its insurance with a consortium of established and reputable insurers in the international aviation insurance market. This includes Lloyds syndicates and globally renowned insurance companies.

Further, MAS said it had enough insurance coverage to meet any eventual claims that may arise.

It has already been making early payments to the families of the passengers waiting for news of the search.

These payments however are entirely borne by MAS and is not part of any compensation that may be payable.

 Ranjit Singh| Updated: March 19, 2014

Read more at:http://english.astroawani.com/news/show/mh370-insurers-of-flight-mh370-brace-for-payout-32108?cp