Unfurling the flag at the Red fort on the occasion of 61st Independence Day, Indian Prime Minister Mr. Manmohan Singh delivered Independence Day speech, which was not less than just reading out problems of India. The speech seems like the one that has been used over and over again by all the past prime ministers of India and had the similar highlights:
* More Employment Opportunities for all
* Remove Poverty
* Economic Growth
On 3 June 1947, Viscount Louis Mountbatten, the last British Governor-General of India, announced the partitioning of the British Indian Empire into a secular India and a Muslim Pakistan. On 14 August 1947, Pakistan was declared a separate nation from them. At midnight, on 15 August 1947, India became an independent nation. Violent clashes between Hindus, Muslims, and Sikhs followed. Prime Minister Nehru and Deputy Prime Minister Sardar Vallabhbhai Patel invited Mountbatten to continue as Governor General of India. He was replaced in June 1948 by Chakravarti Rajagopalachari. Patel took on the responsibility of unifying 565 princely states, steering efforts by his “iron fist in a velvet glove” policies, exemplified by the use of military force to integrate Junagadh, Jammu and Kashmir, and Hyderabad state (Operation Polo) into India.
The Constituent Assembly completed the work of drafting the constitution on 26 November 1949; on 26 January 1950 the Republic of India was officially proclaimed. The Constituent Assembly elected Dr. Rajendra Prasad as the first President of India, taking over from Governor General Rajgopalachari. Subsequently, a free and sovereign India absorbed three other territories: Goa (from Portuguese control in 1961), Pondicherry (which the French ceded in 1953–1954) and Sikkim which was absorbed in 1975. In 1952, India held its first general elections, with a voter turnout exceeding 62%.
Mr Singh highlighted that Government need to generate more employment opportunities for all. But how? All the schemes provided by the Government generated less than 2% opportunities and considering the amount we have spent on those it isn’t worth. The key problem is the population Mr. Singh. And second problem is more than 50% of the graduates and post graduates people are UNEMPLOYABLE! We are still working on the old techniques of education, there are many unrecognized and unauthorized institutions running in the country who are giving false degrees and playing with the careers of the people. Regarding Population, recently Kerala adopted 2 Children per family policy, similar to that of China. Why can’t this be adopted across India? We do not have room for more than 2 children per family in India.
Further free education to all has been the slogan of all Prime Ministers since Independence but till now that has just a dream. What we have to understand that the development of RURAL INDIA is the what will bring India forward. We understand that many teachers and professors would not like to go to villages and train children. Why cannot we pay these teachers extra salary and bonuses so that they can be motivated to get bright students from village to come up and help with the development of their village, their town, their city and their country?
Coming back to Poverty - Well one of the reasons for poverty is lack of education and growing population. Subsidy, Reservations, Backward classes, OBC etc wont help remove the poverty, we need to very firm with our population policy and ensuring right distribution of national funds to the right people. In one incident, which I remember, the farmer was handed over a cheque of Rs 5 for relief purpose, which seemed nothing more than a joke. Definitely the chunk money were eaten away by the babus or the civil servants through whom the money was channelized. Farmers are uneducated and we should make efforts by providing them with latest technologies and information, which will help them to produce the right crop at the right time of the year. Drought and Flood should be minimized by implementing the policy of “Channelizing all rivers“.
Reservation - Why do we need that? Why cannot we make education system fair enough for everyone to afford and should be only on the basis of merit. Reservations sound good only in the Railway Platform and not in School, Colleges and Institutions. We should not differentiate between High Caste and Low Caste and should ensure fair opportunities for all.
Economic Growth - No doubt India has seen huge economic growth in past 5 years, especially last year when the GDP was 9%. However the growth’s benefit has not been distributed evenly and has been retarded by constant terror activities and fake currency distribution. And we all know who has been sponsoring the terror activities. Why cannot be take firm actions against our neighbors whose constant interference, terror plots and Anti-India Policy has not only hampered the growth but also claimed millions of innocent lives. Would China tolerated if Pakistan had sponsored their terror activities there? Enough of peace talks, timid warnings and resistance. If they can violate ceasefire thrice in a week (recent ceasefire violations - August 2008), can’t we reply them back so that they should think twice before violating again! Our politicians might say its “Easy said!” No, not easy said Sir. You and me are not standing on the Borders, it’s the soldiers. They risk their lives for us and what we tell them, exercise restraint. Anyways, in past 2-3 years, terror groups inside India have struck almost every major city and they did whenever they wanted. So much as been their courage that they can send emails and give prior warnings that they are striking and we cannot do anything. What is the solution for that? Let Police and Army do the work without any interference by the Politicians and Bureaucrats. We are sure the terror activities will reduce to 10% of what has been happening till now. Like we worship and glorify sportsmen and bollywood, we will also do for all those Police and Army Jawans who will stop and remove these activities.
Finally, on this day, we remember our forefathers who fought for us so that we can get a better life. What are we leaving behind for our future generations! I know all these are easy said, but somewhere we have to start. Someone has to come forward and bring with him/her a force that will start removing the problems that has plagued India for long. We have the will, courage and determination to do whatever asked for. Let’s take one step from today and ensure that we sincerely put an effort to remove the problems from India.
It is very easy for me to pen down thoughts in this way… but having to set an example would be the real step forward in building our nation… Small small things can help a lot.. Teaching our younger generation to conserve power… to respect the value of the food we eat…. To help keep our roads clean(We throw chewing gum wrappers, chocolate wrappers etc just as and when we wish out of our car windows.. seeing this our children also do the same…), giving education to needy chilren. If we can think about such small small differences we can make.. it would go a long way…. Atleast I try to follow a few things to help my country be really Independant, Vibrant, Super power… Jai Hind!
Nice thoughts vivz! Those are not small things, keeping the streets clean and conserving power are key problems as well. So lets pledge we will not throw any thing on streets. Even if we see someone throwing them, we can go ahead and pick them up (without any grudge) and throw them in dustbin so that the person who threw will thing twice before doing again.
Conserving power, be it office or hotel or your friend’s home, we should not think its not our power and we can let it go for waste. Switch off unwanted lights/fans/Acs and disallow power thefts.
A healthy country should have at least 35 per cent of forest land and due to deforestation the per cent has reduced to 25-26% only and reducing further. We should plant more trees and encourage afforestation and not convert this country into concrete jungle!
I hope many more people come forward with these small thoughts, which can be implemented easily.
Monday, August 18, 2008
India's 61st Independence Day
Monday, August 11, 2008
Gold Medal for INDIA in Olympics 2008
A star-starved nation found a new sporting icon in a bespectacled marksman as Abhinav Bindra shot his way to history, winning India's first ever individual Olympic gold medal in the 10m air rifle event on Monday. World champion Abhinav Bindra clinched India's first ever individual gold medal at the Olympics, winning 10m air rifle event at the Beijing Games here today.
The 25-year-old, who qualified fourth for the event, shot an overall score of (596+140.5) 700.5 in a thrilling finale which went right down to the last shot.
Bindra's historic feat makes him India's first-ever individual gold medallist, bettering the silver medal feat of double trap shooter Rajyavardhan Singh Rathore in Athens 2004.
"He is the best shooter in the world and I think his is a morale boosting feat for everyone in the contingent," a jubilant Indian Olympic Association President Suresh Kalmadi said after Bindra's win.
"We are all very happy. He is a very hardworking athlete. The entire shooting contingent is celebrating. We are very proud of him and it is just the beginning," national coach Sunny Thomas said.
"Abhinav is a very calm and composed guy and doesn't get very excited," Thomas added.
A 10.6 on his seventh attempt earned him the lead and Bindra held on to it. He then scored a 10.0, 10.2 and finally a 10.8 to clinch the first berth.
His scores in the ten rounds of the finals were: 10.7, 10.3, 10.4, 10.5, 10.5, 10.5, 10.6, 10.0, 10.2, 10.8.
Local favourite and defending champion Qinan Zhu of China won silver, while Finland's Hakkinen won bronze.
Final scores: Abhinav Bindra 700.5 (596+104.5). Qinan Zhu 699.7 (597+102.7). Henri Hakkinen 699.4 (598+101.4).
Fellow Indian Gagan Narang too almost made it to the final but was ruled out on countback. Gagan scored 595, levelled at the fifth place but lost out on a final place in countback. He finished ninth.
Wednesday, August 6, 2008
Keeping Relationships Healthy..
“When it comes to love, you need not fall but rather surrender, surrender to the idea that you must love yourself before you can love another. You must absolutely trust yourself before you can absolutely trust another and most importantly you must accept your flaws before you can accept the flaws of another”.
Relationships with our spouses and girl/boy-friends can be one of the most rewarding aspects of our lives. We hold a special place for that someone with whom we’ve shared countless moments of joy. Personality differences are inevitable, and what makes us unique as individuals can result in disagreements and conflicts during our relationship.
The following are some pointers that have proven to be effective in our relationship
• Make sure both sides of the dispute get equally heard. Too many times, one person does all of the talking. No matter how tempted you are to start talking, always be ready to listen as well, and not just half-heartedly. Understand what your partner says, just as you expect them to do when it’s your turn to talk.
• Love.
• Recognize the Crying Baby - By bringing awareness into a situation, we will get better at recognizing when our partner is in the crying baby state. When they are in a baby state, it is highly beneficial if we remain calm. Don’t take what they say personally during this state, they don’t mean it.
• Love.
• Compromise. Learn to bend at times. Be flexible. If you are abl
e to try different things while keeping an open mind, you’ll find yourselves a lot happier with your relationship and with yourself.
• Love.
• Ask yourself: “Am I arguing so that I could win the battle?” - If the answer is yes, ask yourself whether winning this battle will make a difference in your life in 40 years? How about tomorrow?
• Love.
• Forgive & Accept - Remember that inside, we are all good people. Really, we were all born innocent, loving, kind and generous. See the light in them, as you too have that light within yourself.
• Love.
• Apologize & Explain - Say I’m sorry and show that you mean it by explaining why you are sorry. Don’t be shy or let your pride get in the way. Life is short, do the right thing, instead of the thing right for your ego.
• And Love and love….
Conflict Resolution Skills
Conflict can endanger re
lationships, but if handled well, it can also provide opportunities for growth, ultimately strengthening the bond between two people. Since relationship conflicts are inevitable, learning to deal with them (rather than avoiding them) is crucial. Recognizing and managing conflict is also an essential part of building emotional intelligence, and nurturing relationships at home and work. Learn the skills you need for conflict resolution, and keep your relationships strong and growing.
Tuesday, August 5, 2008
Ouija Board - Facts & Realties
Users subconsciously direct the path of the triangle to produce a word that is in that person's subconscious thought process. This subconscious behavior is known as ideomotor action, a term coined by William Carpenter in 1882. It is also known as automatism. Some people may be convinced the "powers" of the ouija board are real because they are unaware that they are in fact moving the piece and therefore assume that the piece must be moving due to some other "spiritual force". The subconscious thought process may produce an answer that is different from what the user expected in their conscious thought process—thus perpetuating the idea that the board has "mystical powers". Spiritualists who believe Ouija boards can be used to make actual contact with the spirit world feel that the act of hindering a medium’s ability to use his or her own eyes while the board is in use effectively places too great of a handicap on the whole exercise (see ad hoc hypothesis). This argument stems from the belief that contacted spirits actually utilize the eyes of the medium during a Ouija session in order to point to the letters and words needed to form a message. Most believers of this notion believe that the board has no intrinsic power in and of itself, but rather, is used simply as a tool to aid a medium while in communication with the spirit world.
Ouija Board !!
An ouija board is any flat surface - sometimes an actual board such as a piece of wood or sometimes it can be a table or something like that. On the board are arranged the letters of the alphabet (sometimes also the numbers 0-9) and the words YES and NO. If you are using a table these can be witten on pieces of paper or card. An upturned glass is placed on the centre on the board and every participant places the index finger of their right hand on top of the upturned glass. The spirits are then summoned and may be asked questions to which they will reply by moving the glass to either YES or NO or by spelling out the answer by moving to each letter in turn. It is a good idea to have at least one person in the room who is an observer. They can note down the questions and answers and are also able to intervene if something starts to go horribly wrong.Explanation
Scientific explanation
Spiritualist explanation
Stories about Ouija Boards:-
* Two boys of about 13 were found dead in a locked room sat around an Ouija Board. The expressions on their faces was one of total horror and they had both died of heart attacks.
YOU HAVE BEEN WARNED!!
* late Roman Catholic priest Malachi Martin believed talking boards are dangerous and claimed that by using these devices a person opens themselves to demonic oppression or possession.
* GK Chesterton used a Ouija board. Around 1893 he had gone through a crisis of skepticism and depression, and during this period Chesterton experimented with the Ouija board and grew fascinated with the occult. [20]
* Poet James Merrill used a Ouija board for years, and even encouraged entrance of spirits into his body. He wrote the poem "The Changing Light at Sandover" with the help of a Ouija board. Before he died, he recommended people to not use Ouija boards.[21]
* Rap group Bone Thugs-N-Harmony often mention the Ouija board and what it tells them to do
* Former Italian Prime Minister Romano Prodi claimed under oath that, in a séance held in 1978 with other professors at the University of Bologna, the "ghost" of Giorgio La Pira spelled the name of the street where Aldo Moro was being held by the Red Brigades in a Ouija. According to Peter Popham of The Independent: "Everybody here has long believed that Prodi's ouija board tale was no more than an ill-advised and bizarre way to conceal the identity of his true source, probably a person from Bologna's seething far-left underground whom he was pledged to protect."
* Bill Wilson the co-founder of Alcoholics Anonymous used the Ouija Board to contact spirits.[23] His wife said that he would get messages directly without even using the board.[24]For a while, his participation in AA was deeply affected by his involvement with the Ouija board. Wilson claimed that he received the twelve step method directly from a spirit without the board and wrote it down.[25]
* Art Bell, the former host of the paranormal-themed radio show Coast To Coast AM (which on Halloween became Ghost To Ghost AM) had once used an Ouija board, and experienced something he's been wanting to forget ever since. He refused to tell any of the callers/listeners about the actual experience and he always advised not to use an Ouija board - ever.
* The Fiery Furnaces said that they used a Ouija board to write lyrics for their forthcoming album Widow City [26]
* On the July 25, 2007 edition of the paranormal radio show Coast to Coast AM, host George Noory attempted to carry out a live Ouija board experiment on national radio despite the strong objections of one of his guests, Jordan Maxwell, and with the encouragement of his other guests, Dr. Bruce Goldberg, Rosemary Ellen Guiley and Jerry Edward Cornelius.[citation needed] In the days and hours leading up to the show, unfortunate events kept occurring to Noory's friends and family as well as some of his guests, but these events would likely be considered coincidences by skeptics. After recounting a near-death experience in 2000 and noting bizarre events taking place, Noory canceled the experiment.[citation needed]
* The singer Morrissey has a song titled Ouija Board, Ouija Board.
* Matthew Bellamy, front man of the rock band Muse, has said that his mother was a medium.[citation needed] When he was a young boy, he and his family played with Ouija boards.[citation needed]
* In 2008, progressive rock band The Mars Volta released an album titled The Bedlam in Goliath in an attempt to reverse the bad luck from a Ouija board that guitaritst/producer Omar Rodriguez-Lopez bought while visiting Jerusalem and later buried after a disastrous tour.[citation needed] The vinyl release will come with its own Ouija board built into the gatefold.
* Sheryl Crow makes a reference to the Ouija board in a text passage of A Change Would Do You Good.
* Metallica guitarist Kirk Hammett has a signature guitar model with a Ouija board motif which was actually spelt wrong which he used live.
* N.W.A They were seen using the board, during one of their Homevideos
For more details vist: http://en.wikipedia.org/wiki/Ouija
Monday, August 4, 2008
San Fermin Festival In Pamplona , Spain
San Fermin festival in Pamplona, Spain
The San Fermin festival in nor
thern Spain, held since 1591, attracts tens of thousands of foreign visitors each year for nine days of revelry, bull runs and bullfights. The bulls are released on to the streets each morning and hundreds of people are chased along an 825-metre course leading to the arenas where bullfights are staged in the afternoons.
The festival of San Fermin, or the Pamplona bull running as it's more commonly known outside Spain officially begins at midday on 6th July every year with the 'chupinazo' which takes place on the balcony of the Casa Consistorial in Pamplona. Thousands of people congregate in the square awaiting the mayor's official announcement that the fiestas have begun, a rocket is launched and the partying begins.The history of the bullrunning in Pamplona is not clear. There is evidence of the festival from as far back as the 13th century when it seems the events took place in October as this coincided with the festival of San Fermin on October 10th. It seems that the modern day celebration has evolved from this as well as individual commercial and bullfighting fiestas which can be traced back to the 14th century.
Over many years the mainly religious festival of San Fermin was diluted by music, dancing, bullfights and markets such that the Pamplona Council proposed that the whole event be moved to July 7th when the weather is far more conducive to such a celebration. To this day San Fermin remains a fixed date every year with the first bullrun at 8am on July 7th and the last at the same time on July 14th.
The Bull Run
The Pamplona bull run takes place at 8am every morning from 7th to 14th J
uly. Runners must be in the running area by 7.30am. The actual run stretches from the corral at Santo Domingo where the bulls are kept, to the bullring where they will fight that same afternoon. The length of the run is 825 metres and the average time of the run from start to finish is about three minutes. The streets through the old town which make up the bull run are walled off so the bulls can't escape. Each day six fighting bulls run the route as well as two herds of bullocks.
The tension builds as the release of the bulls approaches and at 8am on the dot a rocket is fired to confirm that the gate has been opened at the Santo Domingo corral. Runners dressed in white with a red hankerchief around their necks pray to San Fermin then a second rocket announces that the bulls have left. The bulls and the runners then proceed along the route.Watching the Bull Run
Yo u can s tand behi nd the fences t ha t mark th e ro ute of the bullrun but you need to arrive by around 6.30am to get the b est spots on the top of the fence directly overlooking the run. Another good spot is in front of the museum on c/ Santo Domingo where there isn't a fence but the bes t spots here are usually taken before 6am leaving you with a cold two hour wait before the run starts.
Sanfermin Festival Video: Tickets for the bullfights are sold out well in advance as the arena only holds 12,500 people. Every evening after the day's bullfight some tickets go on sale for the next evening's event at the 'taquillas' at the bull ring. You'll usually find ticket touts operating around the Plaza de Toros during the day and before the bullfight selling at elevated prices. Pamplona Hotels are very difficult to book at short notice. If you're planning on going for this event then consider booking upto twelve months in advance. An alternative to staying in Pamplona is to stay in a hotel in San Sebastian and make the early morning trip to the bull run from there.Bullfight Tickets
Pamplona Accommodation
Auto Insurance
What is an Automobile Insurance?
This is insurance which protects the insured against losses involving the use of automobiles. Various coverages may be bought depending on the desires of the insured. Such coverages include the liability coverages of bodily injury, property damage, and medical payments, and the physical damage coverages of collision and comprehensive.
In some states, to drive (get license plates) you must carry:
* Liability coverage to pay for losses you cause others, or:
* No-fault coverage to pay you and your passengers for medical and related expenses caused by injuries from a car accident, regardless of fault, or
* Both coverages.
Even in states where coverage isn’t required, drivers must, by law, be able to pay for losses they may cause others. Having insurance is the simplest way for most people to comply. Coverage for vehicle damage usually is necessary to finance a car.
Without insurance, you risk paying for the full cost of:
* Any harm you cause others, or:
* Repairing or replacing your car if it’s damaged or stolen.
Policy Coverage should Include:Loss or damage to your vehicle: The policy covers you against any loss or damage caused to the vehicle due to the following natural and man made calamities.
Natural Calamities – Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide.
Man made Calamities – Burglary, theft, riot, strike, malicious act, accident by external means, terrorist activity, any damage in transit by road, rail, inland waterway, lift, elevator or air.
Personal accident cover: The motor insurance provides compulsory personal accident cover of Rs. 2 lakhs for individual owner driver of the vehicle insured while travelling in, mounting or dismounting from the car. You can also opt for a personal accident cover for passengers. Third party legal liability: This protects you against legal liability arising due to accidental damages
- Any permanent injury/ death of a person
- Any damage caused to the property.
Saturday, August 2, 2008
Happy Friendship Day !!
Happy Friendship day to U !!
FRIENDSHIP isn’t how U forGet but how U forGive, Not how U liSten but how U UnderStand, Not what U see but how U feel, and not how U Let Go but how U hold oN!!! HAPPY FRIENDSHIP DAY!! A friend is someone who knows all about us, and loves us just the same. Friendship is a wonderful bond, an enchanting chemistry between people, which feels like magic.
Friendship Day is celebrated annually, on the first Sunday of August, ie. 3 August this year in several countries. It was initially declared a holiday in honor of friends in the United States
Friendship Day has been commercialized to a great extent in India
Friendship Day Party Ideas
First things first. Why not get the fun on with some funky invitation cards for your Friendship Day party ? Consider designing them with a funny cartoon, a few good jokes, and some nice quote
s or with your own signature message straight from the heart. Make it as colorful and attractive as possible so that your cool pals can’t wait to drop in at your Friendship Day party !
Next decide the nature of your Friendship Day party. If it’s a day-party, your planning would be a little different from an overnight Friendship Day party, right ? To party through the day, a special Friendship Day cookout at your backyard is always a good idea, especially when it’s the season for the sizzling barbecues, cool lemonades and yummy hotdogs ! Picnicking would be yet another sprightly thought for your Friendship Day party, this again if you’re planning t
o party daytime. Fill up the picnic hamper with games and goodies and check out how wild ‘wild’ can be when friends are around !
Now if you prefer to party through the night, a Friendship Day dinner party is quite a smart thought to sweep your buds over. Hit your favorite joint with the entire gang, order what you enjoy the best and romp and chomp your way to a total upbeat and zesty fun-time on Friendship Day. Yet another starry idea for the party-freaks of the night is a sleepover party on Friendship Day. It’s quite popular with the kids, but the big ones enjoy it just as much. Or you can also invite your friends for a stargazing party this Friendship Day. For all those, who haven’t experienced whatit is to lie under the starry night-sky and watch the stars with people you hold close, it’s definitely a top to-do thing, if not a must !
Friendship Day History
History of Friendship Day in USA
Considering the valuable role friends play in our life it was deemed to fit to have a day dedicated to friends and friendship. The United States Congress, in 1935, proclaimed first Sunday of August as the National Friendship Day.
In 1997, the United Nations named Winnie - the Pooh as the world's Ambassador of Friendship.
Importance of Friendship in Bible
The Bible, the primary text of the western civilization, reflects upon friendship as the bond that forms the foundation to human faith, trust and companionship.
In the famous Hindu epic ‘Mahabharata’, Lord Krishna demonstrates the many colors of friendship - affection, romance, brotherhood, protection, guidance, intimacy and even teasing.
Friendship day Quotes:
" Two may talk together under the same roof for many years, yet never really meet; and two others at first speech are old friends. "
- Mary Catherwood
" Friendship is unnecessary, like philosophy, like art... It has no survival value; rather is one of those things that give value to survival. "
- C. S. Lewis
" Anybody can sympathise with the sufferings of a friend, but it requires a very fine nature to sympathise with a friend's success. "
- Oscar Wilde
Pick the child life insurance plan carefully
Using Insurance to plan your child's future:
Planning for the child’s future is an important decision in any parent’s life. There are a variety of child insurance plans available in the market today, which can act as a savings tool to secure your child’s future. Child plans help address your child’s future education and/or marriage needs. They also provide the capital that your child may need at a later stage to venture into a business.
Some life insurance companies have a lower premium on their child plans if the proposer is the mother. For example, SBI Life and ICICI Prudential to name just two, charge a lower premium on child plans, provided that it’s the mother who pays the premiums.
Money back child insurance plans
Money back plans are ideal for parents planning for life stage events like child's education, marriage or seed capital for a business opportunity. A father wants to set aside some money for his 5-year old daughter's higher education. He also wants to have enough money for her marriage a few years after that. This is the ideal scenario for a money back plan.
The father can select a money back endowment plan with a 20-Yr tenure for a sum assured of Rs 10 lakhs (Rs 1 million). The annual premium that he will have to pay is Rs 67,175 (refer Table 1). The premium amount will vary across life insurers.
| Age (Yrs) | Sum Assured (Rs) | Tenure (Yrs) | Premium (Rs) |
| 30 | 1,000,000 | 20 | 67,175 |
One word of caution " Please make sure that you know the expenses and other deductible’s very clearly before hand " because the early years charges are quite high in some plans and in some policies the exit years can be expensive. Most of the insurance companies in
Life Insurance for Disabled Children: Sadly, there is no government or private insurance policy that is particularly created to care for the future needs of disabled children. On the other hand, a common life insurance can offer the security that you will need for the financial future of your disabled child or children. You can either get a term or a permanent (cash-value) life insurance to finance a special needs trust. The special needs trust is a legal agreement that will allow you to provide for the needs of your child in his entire life including after your death. The funds that will come from the trust will be given on top of the benefits he will get from the government.
Thursday, July 31, 2008
Beauty Tips
Body care
* Mix six-teaspoon petroleum jelly, two-teaspoon glycerin and two-teaspoon lemon juice. Apply this moisturizing lotion at least twice a week if you have dry and flaky, arms and legs * Peel and grate a cucumber. Squeeze the juice to this, mix half-a-teaspoon glycerin and half-a-teaspoon rose water. Apply this on sunburns, leave it for some time. * If you have cracked heels, melt paraffin wax; mix it with little mustard oil and apply on the affected area. Leave it overnight. After 10 or 15 days, your heels will become smooth. * Massage your body with a mixture of coconut oil and any of your favourite scented oils like lavender or rosemary. * For rough palms, use a mixture of glycerin and limejuice in equal proportion. * For cracked heals, massage the foot with coconut oil and keep the foot in warm water for some time. Wipe the water off the feet and apply a mixture of hibiscus flower(10), Henna (1 handful) and juice of half a lemon. when dry wash it off. *Remove scars on your hands and feet by rubbing them with lemon peel.
Eye care
* Dip wads of cotton in a chilled mixture of cucumber and potato juice. Keep this on your eyelids for 15 to 20 minutes and gently wash it off. Apply a little baby oil. * For long eyelashes.., apply a thin coat of castor oil every night. It strengthens lashes and cools your eyes. * Massage a few drops of coconut oil around the eyes to get rid off dark circles. * To reduce puffiness of your eyes, grate a potato; tie in a cloth and place the cloth over your eyes for about 15 minutes. * Add a small pinch of salt in water and wash for bright and sparkling eyes. * Mix tomato juice and lemon juice in equal quantity and apply around the eyes. After 30 minutes wash it off with cold and hot water alternatively. * Make a paste of sandal wood and nutmeg. Apply the paste around the eyes before sleeping and wash it off in the morning. * Crush a cucumber and take the juice. Add a little rose water and apply around the eyes and wash it after 30 minutes. * Place cotton wool swabs dipped in cold milk on closed eyes for removing dark circles.
Lip Care
* You can mix one-tablespoon cranberry sauce juice with two tablespoons Vaseline for a delicious home made lip balm. * Apply the juice of lemon skin for avoiding black colour of lips * Massage your lips with coriander leaf juice for soft and rosy lips.
Cosmetic Plastic Surgery & Breast Augmentation
Facial plastic surgery The female breast lies between the 2 nd and the 6 th ribs. The major muscles under the breast gland are the pectoralis and serratus anterior muscle. The pigmented portion of the breast which surrounds the nipple is called the areola. The sensation to the nipples comes from nerves arising from the fourth rib space. The development of the female breast begins during puberty. The preadolescent breast consists of a small elevated nipple with no elevation of the underlying breast tissue. Between the ages of 8 and 14, secondary characteristics become apparent. Breast buds appear, and further enlargement of the breasts and areola follows. After pregnancies, the areola of the female breast will further enlarge in size.
If you have decided to take up a facial plastic surgery, then it is important for you to know in depth about the facts of the surgery. You should know certain details like how long it will take for a plastic surgery? What are the side effects? Who should take up a plastic surgery? etc Read through.This article covers
What is a face lift?
Who require plastic surgery?
For which areas facial surgeries are ideal?
Who can consider plastic surgery?
Virtually all aspects of the human face could be enhanced with various cosmetic procedures. Facial plastic surgery can remove wrinkles, refine features, tone sagging skin, and even change the contour of the face. There are consequences of facial plastic surgery. Male candidates may literally find themselves shaving behind their ears, for instance. But if enhancing your appearance is of primary importance to you, there are a number of available procedures.
The most traditional procedure for the face, plastic surgery known as a “face lift,” is also the most expensive and the most extensive. Over the course of several hours excess fat is removed from the face and neck, the muscles are tightened, and the skin re-draped. Extensive bruising, swelling, numbness and tenderness result and there is a chance of nerve damage and scarring. Recovery takes from ten days to two weeks, but the effects of this drastic procedure lasts from five to ten years.
By the same token so-called “nose jobs” have long been a staple of facial plastic surgery. In this procedure, known as rhinoplasty, the nose is reshaped usually by narrowing the overall profile or altering the shape of the tip. Rhinoplasty takes approximately an hour to two hours and involves some initial swelling and discomfort. The total recovery time is one to two weeks and the effect is permanent.
For the upper facial area the most radical procedure would be a forehead lift which minimizes creases and a drooping or hooded effect around the eyebrows and eyes. Also a one to two hour procedure, forehead lifts involve swelling, numbness, headaches, bruises, and carry the risk of nerve damage. The recovery time is seven to ten days with the effect lasting five to ten years.
Finally, the eyelids may be reshaped via blepharoplasty which corrects drooping upper lids or puffy bags under the eyes. Requiring two to three hours, the procedure causes swelling, bruises, and light sensitivity with a potential for dry eyes and blurred or double vision. Patients need two to three days to be able to see well enough to read and can return to work in a week to ten days. The effect of this procedure should last several years.
Breast Implant /Augumentation Many women are unhappy with the size or shape of their breasts for various reasons. Surgery of the breast is a reliable and safe option for thousands of women who wish to change the appearance of their breasts, whether they are looking for larger breasts more in proportion with their figure, a reduction in the size and shape of too-large breasts after a mastectomy, or an lift of the breasts for breasts that have drooped whether it be due to aging, breastfeeding, weight loss or weight gain. For these women, surgery of the breast is often the long-term answer.
The breast has three principal components. (1) The glandular tissue is organized into 12 to 20 lobes, each of which terminates into a duct that opens on the surface of the nipple. (2) The glandular tissue is supported by fibrous tissue, including suspensory ligaments that are connected both to the skin and the tissue underlying the breast. (3) Fat surrounds the breast and predominates both superficially and peripherally. The proportions of these components vary with age, the general state of nutrition, pregnancy, and other factors.
How to select a retirement plan from an insurance company ?
by Gary Bennett, Managing Director & CEO, Max Retirement is a new life, a life different from what we have lived through out our life. Retirement is about doing what you always wanted to do but the life did not permit. Retirement is a life full of bliss but with a few ifs and for many with numerous ifs. This is true about retired life world over and is becoming a reality in India too. The economic and demographic landscape of India has changed over the last one decade or so. The economic growth has given more disposal income in the hands of Indian households. At the same time the improved healthcare has significantly improved the life expectancy. Today an average Indian lives 8 years beyond the retirement age of 60 years. A great news for the country but it also brings with it new challenges especially in a country like India where no real social security system exist. The biggest mistake anyone can make in planning for retirement is to consider retirement far off. In fact it is correctly said that the day you earn your first money, start planning for retirement. Is it taking the logic of starting early too far? In my opinion a big no. I also believe, retirement plans from Life Insurers should form an important part of any financial plan because retirement planning requires the discipline of saving for long-term. With multiple retirement plans from life insurers available and many more to come in the market, the decision making many a time becomes a difficult task. While selecting a life insurance plan for retirement, one needs to focus on just a few things. The first and foremost is the allocation of funds for investment over a period of time because more the invested funds more would be the return. Retirement planning is a long-term game hence even a small incremental allocation in the first few years could lead to significantly higher return at the end of the period. The second thing to be kept in mind is the various charges deducted by the life insurer such as fund management charges, policy admin charges, the top up allocation etc. The fund management charges charged every year may again seem to be a small amount but cumulatively over the long-term can make a difference, which certainly would be a significant amount. Another thing to be kept in mind is an understanding of your own risk profile, a periodic review of that to consider any change in your profile and management of your funds accordingly. Depending on the time horizon of the investment and your personal risk taking ability you may choose between fixed income funds where 100% of the fund is invested in fixed income or a fund, which has the mandate to invest 100% in equity or a balanced fund having a mix of fixed income and equity. Everyone cannot be financially savvy to judge one’s risk profile and thus should ideally leave it in the hands of the experts. I would always suggest that one should go in for a retirement plan which has the automatic risk management facility in fund management i.e. it will change your fund options based on your life stage. This will take away some of the hassles though I would add that one should always keep one’s financial advisor informed about the changes in one’s life. And last but not the least look for a company that understands financial planning, has a good track record and is financially robust.
Wednesday, July 30, 2008
Real Estate and Mortgage Related Topics
Hire a real estate professional.An important first step is selecting a home buying professional to help you find your dream home and fine-tune your financial expectations. Working with a buyer agent is worth consideration because he or she is legally responsible for representing the buyer's interest in a real estate transaction. Before making a decision, however, have a REALTOR® explain the pros and cons of using a buyer agent versus a dual agent. Your RE/MAX Associate can guide you through every step of home buying.
Shop for mortgage rates and terms.A difference of even half a percentage point can mean a considerable savings over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month. Over 30 years, that's $12,600.
Prequalify for a loan.Also early on, you'll want to get prequalified for a mortgage loan, which determines how much you can afford. It allows you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious about home buying and can afford to buy the property.
Outline what you want.The next step in home buying is to create a realistic idea of the property you'd like to buy. What features are most important to you? Make two lists: one of the items you can't live without and one of the features you would enjoy. Refine the lists as you house-hunt. It is also helpful to search online to see what is currently available on the market. Your real estate professional can then show you houses that meet your expectations.
Visit properties.Now you're ready to visit houses. Ask your RE/MAX Associate to help in your home buying process by arranging showings. Be sure to keep track of the properties you've seen. Each time you venture out to see more properties, revisit your notes to immediately eliminate any that clearly do not meet your standards.
Know the features that help or hurt resale.In some areas, a swimming pool actually detracts from a home's value and makes it harder to sell. In neighborhoods with two-car, attached garages, a single-car or detached garage may affect the home buying prospects and future value. Your RE/MAX professional can point out features that hurt or help resale value.
Rate the houses you tour.After touring each home, write down what you liked and didn't like. Develop a rating system that will help narrow the home buying field. For example, pick the house you like best on day one and compare all other houses to it. When you find a better one, use the new favorite as the standard. Avoid trying to track more than four top choices at any given time since this can quickly become overwhelming.
Make an offer.Once you've pinpointed your dream house, it's time to get serious about the financial and contractual side of the purchase. Let your RE/MAX Associate guide you through this sensitive home buying process. Because you and the seller have different goals, rely on your RE/MAX agent's experience and expertise to bring order and calm to the process - and help both parties reach a favorable outcome.
Arrange for a home inspection.After your offer is accepted, set up a home inspection. It's common to find problems, including leaky roofs, cracked walls, insect infestations and foundation problems. Your real estate professional can help find a reputable inspector, and will negotiate to get you the most for your money once the inspector's report is final. If you negotiate repairs as part of the purchase, ask for a "walk through" before finalizing the home buying paperwork. Ask your real estate expert about home protection plans, which may save you money in the near future.
Close.Before your closing date, make sure you've made all necessary deposits and completed the paperwork - including mortgage, title, homeowner's insurance and any other paperwork required by local or state governments when home buying. Your RE/MAX agent will be there to help you complete that closing checklist and avoid any last-minute snags. You deserve to enjoy every moment of the home buying process.
Prepare for life in your new home.Before rolling out the welcome mat, consider some moving basics: arranging for an alarm company, turning on electricity, water and gas, cleaning or replacing the carpet, and notifying your local post office of your new address. The best time for renovations is often before you move in.
Guidelines for the real estate seller
Make the most of that first impression: A well-manicured lawn, neatly trimmed shrubs and a clutter-free porch help real estate sellers put their best foot forward and make prospects feel welcome. So does a freshly painted - or at least freshly scrubbed - front door. If it's autumn, rake the leaves. If it's winter, shovel the walkways. The fewer obstacles between prospects and the true appeal of the real estate seller's home, the better.
Invest a few hours for future dividendsHere's your chance to clean up in real estate. Tidy the living room, the bathroom, the kitchen. If your woodwork is scuffed or the paint is fading, consider some minor touch-ups and redecorating. Real estate sellers can benefit from updating the hardware on kitchen cabinets, adding new slipcovers to sofas and keeping a vase of fresh flowers in the entryway. These are some of the simple touches that can go a long way. If you're worried about time, hire professional cleaners or painters to help get your house ready. Remember, prospects would rather see how great the real estate seller's home really looks than hear how great it could look "with a little work."
Check faucets and bulbsDripping water rattles the nerves, discolors sinks and suggests faulty or worn-out plumbing. Burned-out bulbs or faulty wiring leave prospects in the dark. Don't let those problems detract from what's right with your home.
Don't shut out a saleIf cabinets or closet doors stick in your home, you can be sure they will also stick in a prospect's mind. Don't try to explain away sticky situations when you can easily plane them away. A little effort on the real estate seller's part can smooth the way toward a closing.
Think safetyReal estate sellers learn to live with all kinds of self-set booby traps: roller blades on the stairs, festooned extension cords, slippery throw rugs and low-hanging overhead lights. Make your residence as safe as possible for visitors.
Make room for spaceRemember, potential buyers are looking for more than just comfortable living space. They're looking for storage space, too. Real estate sellers should make sure attics and basements are clean and free of unnecessary items.
Consider your closetsThe better organized a closet, the larger it appears. Now's the time to box up those unwanted clothes and donate them to charity.
Make your bathroom sparkleBathrooms sell homes, so let them shine. Check and repair damaged or unsightly caulking in the tubs and showers. For added allure, real estate sellers should display the best towels, mats and shower curtains.
Create dream bedroomsWake up prospects to the cozy comforts of your bedrooms. For a specious look, get rid of excess furniture. Colorful bedspreads and fresh curtains are a must if real estate sellers want buyers to be able to imagine relaxing there.
Open up in the daytimeLet the sun shine in! Real estate sellers should pull back curtains and drapes so that prospects can see how bright and cheery the home is.
Lighten up at nightTurn on the excitement buy turning on all your lights - both inside and outside - when showing your home in the evening. Lights add color and warmth, and make prospects feel welcome.
Avoid crowded scenesPotential buyers often feel like intruders when they enter a home filled with people. Rather than giving your house the attention it deserves, they're likely to hurry through. Real estate sellers should keep the company present to a minimum.
Watch your petsDogs and cars are great companions, but not when real estate sellers are showing their homes. Pets have a talent for getting underfoot. So do everybody a favor: Keep Kitty or Spot outside, or at least out of the way.
Think volumeRock-and-roll will never die. But it might kill a real estate transaction. When it's time for a real estate seller to show the home, it's time to turn down the stereo or TV.
RelaxIt's best if you're not there when your home is being shown. However if that's not possible, be friendly - but it's not necessary to force conversation. Prospects want to view the home with minimal distraction from the real estate seller.
Don't apologizeNo matter how humble your abode, never apologize for its shortcomings. If a prospect volunteers a derogatory comment about your home's appearance, let your experienced RE/MAX Associate handle the situation.
Keep a low profileNobody knows a home better than the real estate seller. But RE/MAX Sales Associates know buyers - what they need and what they want. Your RE/MAX Associate will have an easier time articulating the virtues of your home if you stay in the background.
Don't turn your home into a second-hand storeWhen prospects come to view your home, don't distract them with offers to sell those furnishings you no longer need. You may lose the biggest sale of all.
Defer to experience - It's the Experience®When prospective buyers want to talk price, terms or other real estate matters, let them speak to an expert - your RE/MAX Sales Associate. As the real estate seller, you might feel tempted to weigh in, but your two cents could cost you much more.
Help your agent RE/MAX Associates have an easier time selling homes if showings are scheduled through their offices. And real estate sellers appreciate the results.
Life insurance
Life insurance
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undefinedCarinsurance-ICICILombard.comGet Best Life InsuranceCompare Tata, Bajaj, Pru & LIC & Choose the Best Deal of Your Choice undefinedBimaDeals.in/Best-Life-InsuranceLife insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the policy owner's death.
In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals. As with most insurance polices, life assurance is a contract between the insurer and the policy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or Beneficiaries) if an insured event occurs which is covered by the policy. To be a life policy the insured event must be based upon life (or lives) of the people named in the policy.
Insured events that may be covered include:
death,
accidental death Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide (after 2 years suicide has to be paid in full), fraud, war, riot and civil commotion. Life based contracts tend to fall into two major categories:
Protection policies - designed to provide a benefit in the event of specified event, typically a lump sum payment.
Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums.
Parties to contractThere is a difference between the insured and the policy owner (policy holder), although the owner and the insured are often the same person. For example, if Joe buys a policy on his own life, he is both the owner and the insured. But if Jane, his wife, buys a policy on Joe's life, she is the owner and he is the insured. The policy owner is the guarantee and he or she will be the person who will pay for the policy. The insured is a participant in the contract, but not necessarily a party to it.
The beneficiary receives policy proceeds upon the insured's death. The owner designates the beneficiary, but the beneficiary is not a party to the policy. The owner may change the beneficiary unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary must agree to any beneficiary changes, policy assignments, or cash value borrowing. In cases where the policy owner is not the insured (also referred to as the cestui qui vit or CQV), insurance companies have sought to limit policy purchases to those with an "insurable interest" in the CQV. For life insurance policies, close family members and business partners will usually be found to have an insurable interest.
The "insurable interest" requirement usually demonstrates that the purchaser will actually suffer some kind of loss if the CQV dies. Such a requirement prevents people from benefiting from the purchase of purely speculative policies on people they expect to die. With no insurable interest requirement, the risk that a purchaser would murder the CQV for insurance proceeds would be great. In at least one case, an insurance company which sold a policy to a purchaser with no insurable interest (who later murdered the CQV for the proceeds), was found liable in court for contributing to the wrongful death of the victim (Liberty National Life v. Weldon, 267 Ala.171 (1957)).
Contract termsSpecial provisions may apply, such as suicide clauses wherein the policy becomes null if the insured commits suicide within a specified time (usually two years after the purchase date; some states provide a statutory one-year suicide clause). Any misrepresentations by the insured on the application is also grounds for nullification. Most US states specify that the contestability period cannot be longer than two years; only if the insured dies within this period will the insurer have a legal right to contest the claim on the basis of misrepresentation and request additional information before deciding to pay or deny the claim.
The face amount on the policy is the initial amount that the policy will pay at the death of the insured or when the policy matures, although the actual death benefit can provide for greater or lesser than the face amount. The policy matures when the insured dies or reaches a specified age (such as 100 years old).
Costs, insurability, and underwritingThe insurer (the life insurance company) calculates the policy prices with an intent to fund claims to be paid and administrative costs, and to make a profit. The cost of insurance is determined using mortality tables calculated by actuaries. Actuaries are professionals who employ actuarial science, which is based in mathematics (primarily probability and statistics).
Mortality tables are statistically-based tables showing expected annual mortality rates. It is possible to derive life expectancy estimates from these mortality assumptions. Such estimates can be important in taxation regulation.[1] [2] The three main variables in a mortality table have been age, gender, and use of tobacco. More recently in the US, preferred class specific tables were introduced. The mortality tables provide a baseline for the cost of insurance. In practice, these mortality tables are used in conjunction with the health and family history of the individual applying for a policy in order to determine premiums and insurability. Mortality tables currently in use by life insurance companies in the United States are individually modified by each company using pooled industry experience studies as a starting point.
In the 1980s and 90's the SOA 1975-80 Basic Select & Ultimate tables were the typical reference points, while the 2001 VBT and 2001 CSO tables were published more recently. The newer tables include separate mortality tables for smokers and non-smokers and the CSO tables include separate tables for preferred classes. [3] Recent US select mortality tables predict that roughly 0.35 in 1,000 non-smoking males aged 25 will die during the first year of coverage after underwriting.[4] Mortality approximately doubles for every extra ten years of age so that the mortality rate in the first year for underwritten non-smoking men is about 2.5 in 1,000 people at age 65.[5] Compare this with the US population male mortality rates of 1.3 per 1,000 at age 25 and 19.3 at age 65 (without regard to health or smoking status).[6] The mortality of underwritten persons rises much more quickly that the general population. At the end of 10 years the mortality of that 25 year-old, non-smoking male is 0.66/1000/year. Consequently, in a group of one thousand 25 year old males with a $100,000 policy, all of average health, a life insurance company would have to collect approximately $50 a year from each of a large group to cover the relatively few expected claims. (0.35 to 0.66 expected deaths in each year x $100,000 payout per death = $35 per policy). Administrative and sales commissions need to be accounted for in order for this to make business sense.
A 10 year policy for a 25 year old non-smoking male person with preferred medical history may get offers as low as $90 per year for a $100,000 policy in the competitive US life insurance market. The insurance company receives the premiums from the policy owner and invests them to create a pool of money from which it can pay claims and finance the insurance company's operations. Contrary to popular belief, the majority of the money that insurance companies make comes directly from premiums paid, as money gained through investment of premiums can never, in even the most ideal market conditions, vest enough money per year to pay out claims. Rates charged for life insurance increase with the insured's age because, statistically, people are more likely to die as they get older.
Given that adverse selection can have a negative impact on the insurer's financial situation, the insurer investigates each proposed insured individual unless the policy is below a company-established minimum amount, beginning with the application process. Group Insurance policies are an exception. This investigation and resulting evaluation of the risk is termed underwriting. Health and lifestyle questions are asked. Certain responses or information received may merit further investigation. Life insurance companies in the United States support the Medical Information Bureau(MIB) [7], which is a clearinghouse of information on persons who have applied for life insurance with participating companies in the last seven years. As part of the application, the insurer receives permission to obtain information from the proposed insured's physicians.[8] Underwriters will determine the purpose of insurance. The most common is to protect the owner's family or financial interests in the event of the insured's demise. Other purposes include estate planning or, in the case of cash-value contracts, investment for retirement planning. Bank loans or buy-sell provisions of business agreements are another acceptable purpose. Life insurance companies are never required by law to underwrite or to provide coverage to anyone, with the exception of Civil Rights Act compliance requirements. Insurance companies alone determine insurability, and some people, for their own health or lifestyle reasons, are deemed uninsurable.
The policy can be declined (turned down) or rated. Rating increases the premiums to provide for additional risks relative to the particular insured. Many companies use four general health categories for those evaluated for a life insurance policy. These categories are Preferred Best, Preferred, Standard, and Tobacco. Preferred Best is reserved only for the healthiest individuals in the general population. This means, for instance, that the proposed insured has no adverse medical history, is not under medication for any condition, and his family (immediate and extended) have no history of early cancer, diabetes, or other conditions. Preferred means that the proposed insured is currently under medication for a medical condition and has a family history of particular illnesses. Most people are in the Standard category. Profession, travel, and lifestyle factor into whether the proposed insured will be granted a policy, and which category the insured falls. For example, a person who would otherwise be classified as Preferred Best may be denied a policy if he or she travels to a high risk country.
Underwriting practices can vary from insurer to insurer which provide for more competitive offers in certain circumstances. Life insurance contracts are written on the basis of utmost good faith. That is, the proposer and the insurer both accept that the other is acting in good faith. This means that the proposer can assume the contract offers what it represents without having to fine comb the small print and the insurer assumes the proposer is being honest when providing details to underwriter.
Death proceedsUpon the insured's death, the insurer requires acceptable proof of death before it pays the claim. The normal minimum proof required is a death certificate and the insurer's claim form completed, signed (and typically notarized). If the insured's death is suspicious and the policy amount is large, the insurer may investigate the circumstances surrounding the death before deciding whether it has an obligation to pay the claim. Proceeds from the policy may be paid as a lump sum or as an annuity, which is paid over time in regular recurring payments for either a specified period or for a beneficiary's lifetime.
Insurance vs. assuranceThe specific uses of the term "insurance" and "assurance" are sometimes confused. In general, the term insurance refers to providing cover for an event that might happen while assurance is the provision of cover for an event that is certain to happen. When a person insures the contents of their home they do so because of events that might happen (fire, theft, flood, etc.) They hope their home will never be burglarized, or burn down, but they want to ensure that they are financially protected if the worst happens. This example of Insurance shows how it is a way of spending a little money to protect against the risk of having to spend a lot of money. When a person insures their life they do so knowing that one day they will die. Therefore a policy that covers death is assured to make a payment. The policy offers assurance on death; even if the policy has a prescribed termination date the policy is still assured to pay on death and therefore is an assurance policy.
Examples include Term Assurance and Whole Life Assurance. An accidental death policy is not assured to pay on death as the life insured may not die through an accident, therefore it is an insurance policy. (This set of distinctions does not really apply to United States jurisdictions where both forms of coverage are called "insurance".) A policy might also be assured for other reasons. For example an endowment policy is designed to provide a lump sum on maturity. Under certain types of policy the lump sum is guaranteed. Therefore, this may also be called an assurance policy. The test of whether a policy is assurance or insurance is that with an assurance policy the insured event will definitely occur (at some point) whereas with an insurance policy there is a risk the insured event might occur. With regard to Whole Life policies, the question is not whether the insured event (in this case death) will occur, but simply when. If the policy has nonforfeiture values (or cash values) then the policy is assured to pay. During recent years, the distinction between the two terms has become largely blurred. This is principally due to many companies offering both types of policy, and rather than refer to themselves using both insurance and assurance titles, they instead use just one.
Types of life insuranceLife insurance may be divided into two basic classes – temporary and permanent or following subclasses - term, universal, whole life, variable, variable universal and endowment life insurance.
Temporary (Term)Term life insurance (term assurance in British English) provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Term is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else. (See Theory of Decreasing Responsibility and buy term and invest the difference.) Term insurance premiums are typically low because both the insurer and the policy owner agree that the death of the insured is unlikely during the term of coverage. The three key factors to be considered in term insurance are: face amount (protection or death benefit), premium to be paid (cost to the insured), and length of coverage (term). Various (U.S.) insurance companies sell term insurance with many different combinations of these three parameters. The face amount can remain constant or decline. The term can be for one or more years. The premium can remain level or increase. A common type of term is called annual renewable term. It is a one year policy but the insurance company guarantees it will issue a policy of equal or lesser amount without regard to the insurability of the insured and with a premium set for the insured's age at that time.
Another common type of term insurance is mortgage insurance, which is usually a level premium, declining face value policy. The face amount is intended to equal the amount of the mortgage on the policy owner's residence so the mortgage will be paid if the insured dies. A policy holder insures his life for a specified term. If he dies before that specified term is up, his estate or named beneficiary(ies) receive(s) a payout. If he does not die before the term is up, he receives nothing. In the past these policies would almost always exclude suicide. However, after a number of court judgments against the industry, payouts do occur on death by suicide (presumably except for in the unlikely case that it can be shown that the suicide was just to benefit from the policy). Generally, if an insured person commits suicide within the first two policy years, the insurer will return the premiums paid. However, a death benefit will usually be paid if the suicide occurs after the two year period.
PermanentPermanent life insurance is life insurance that remains in force until the policy matures (pays out), unless the owner fails to pay the premium when due (the policy expires). The policy cannot be canceled by the insurer for any reason except fraud in the application, and that cancellation must occur within a period of time defined by law (usually two years). Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time. This means that a policy with a million dollars face value can be relatively inexpensive to a 70 year old because the actual amount of insurance purchased is much less than one million dollars. The owner can access the money in the cash value by withdrawing money, borrowing the cash value, or surrendering the policy and receiving the surrender value. The three basic types of permanent insurance are whole life, universal life, and endowment.
Whole life coverageWhole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy. The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. Riders are available that can allow one to increase the death benefit by paying additional premium. The death benefit can also be increased through the use of policy dividends. Dividends cannot be guaranteed and may be higher or lower than historical rates over time. Premiums are much higher than term insurance in the short-term, but cumulative premiums are roughly equal if policies are kept in force until average life expectancy. Cash value can be accessed at any time through policy "loans". Since these loans decrease the death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary upon the death of the insured; the beneficiary receives the death benefit only. In many policies, however, the cash value has been automatically used to purchase additional death benefit, meaning that the beneficiary is likely to receive more than base death benefit plus cash value.
Universal life coverageUniversal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. Premiums increase the cash account. Interest is paid within the policy (credited) on the account at a rate specified by the company. This rate has a guaranteed minimum but usually is higher than that minimum. Mortality charges and administrative costs are charged against (reduce) the cash account. The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges, if any. With all life insurance, there are basically two functions that make it work. There's a mortality function and a cash function. The mortality function would be the classical notion of pooling risk where the premiums paid by everybody else would cover the death benefit for the one or two who will die for a given period of time. The cash function inherent in all life insurance says that if a person is to reach age 95 to 100 (the age varies depending on state and company), then the policy matures and endows the face value of the policy. Actuarially, it is reasoned that out of a group of 1000 people, if even 10 of them live to age 95, then the mortality function alone will not be able to cover the cash function. So in order to cover the cash function, a minimum rate of investment return on the premiums will be required in the event that a policy matures. Universal life policies guarantee, to some extent, the death proceeds, but not the cash function - thus the flexible premiums and interest returns. If interest rates are high, then the dividends help reduce premiums. If interest rates are low, then the customer would have to pay additional premiums in order to keep the policy in force. When interest rates are above the minimum required, then the customer has the flexibility to pay less as investment returns cover the remainder to keep the policy in force.
The universal life policy addresses the perceived disadvantages of whole life. Premiums are flexible. The internal rate of return is usually higher because it moves with the financial markets. Mortality costs and administrative charges are known. And cash value may be considered more easily attainable because the owner can discontinue premiums if the cash value allows it. And universal life has a more flexible death benefit because the owner can select one of two death benefit options, Option A and Option B. Option A pays the face amount at death as it's designed to have the cash value equal the death benefit at age 95. Option B pays the face amount plus the cash value, as it's designed to increase the net death benefit as cash values accumulate. Option B does carry with it a caveat. This caveat is that in order for the policy to keep its tax favored life insurance status, it must stay within a corridor specified by state and federal laws that prevent abuses such as attaching a million dollars in cash value to a two dollar insurance policy. The interesting part about this corridor is that for those people who can make it to age 95-100, this corridor requirement goes away and your cash value can equal exactly the face amount of insurance. If this corridor is ever violated, then the universal life policy will be treated as, and in effect turn into, a Modified Endowment Contract (or more commonly referred to as a MEC). But universal life has its own disadvantages which stem primarily from this flexibility.
The policy lacks the fundamental guarantee that the policy will be in force unless sufficient premiums have been paid and cash values are not guaranteed. Universal life policies are sometimes erroneously referred to as self-sustaining policies. In the 1980s, when interest rates were high, the cash value accumulated at a more accelerated rate, and universal life coverage was often sold by agents as a policy that could be self-paying. Many policies did sustain themselves for a prolonged period, but the combination of lower interest rates and an increasing cost of insurance as the insured ages meant that for many policies, the cash option was diminished or depleted. Variable universal life Insurance (VUL) is not the same as universal life, even though they both have cash values attached to them. These differences are in how the cash accounts are managed; thus having a great effect on how they are treated for taxation. The cash account within a VUL is held in the insurer's "separate account" (generally in mutual funds, managed by a fund manager).
Limited-payAnother type of permanent insurance is Limited-pay life insurance, in which all the premiums are paid over a specified period after which no additional premiums are due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65.
Endowments
Main article: Endowment policyEndowments are policies in which the cash value built up inside the policy, equals the death benefit (face amount) at a certain age. The age this commences is known as the endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier. In the United States, the Technical Corrections Act of 1988 tightened the rules on tax shelters (creating modified endowments). These follow tax rules as annuities and IRAs do. Endowment Insurance is paid out whether the insured lives or dies, after a specific period (e.g. 15 years) or a specific age (e.g. 65).
Accidental deathAccidental death is a limited life insurance that is designed to cover the insured when they pass away due to an accident. Accidents include anything from an injury, but do not typically cover any deaths resulting from health problems or suicide. Because they only cover accidents, these policies are much less expensive than other life insurances. It is also very commonly offered as "accidental death and dismemberment insurance", also known as an AD&D policy. In an AD&D policy, benefits are available not only for accidental death, but also for loss of limbs or bodily functions such as sight and hearing, etc. Accidental death and AD&D policies very rarely pay a benefit; either the cause of death is not covered, or the coverage is not maintained after the accident until death occurs. To be aware of what coverage they have, an insured should always review their policy for what it covers and what it excludes.
Often, it does not cover an insured who puts themselves at risk in activities such as: parachuting, flying an airplane, professional sports, or involvement in a war (military or not). Also, some insurers will exclude death and injury caused by proximate causes due to (but not limited to) racing on wheels and mountaineering. Accidental death benefits can also be added to a standard life insurance policy as a rider. If this rider is purchased, the policy will generally pay double the face amount if the insured dies due to an accident. This used to be commonly referred to as a double indemnity coverage. In some cases, some companies may even offer a triple indemnity cover.
Related life insurance productsRiders are modifications to the insurance policy added at the same time the policy is issued. These riders change the basic policy to provide some feature desired by the policy owner. A common rider is accidental death, which used to be commonly referred to as "double indemnity", which pays twice the amount of the policy face value if death results from accidental causes, as if both a full coverage policy and an accidental death policy were in effect on the insured. Another common rider is premium waiver, which waives future premiums if the insured becomes disabled. Joint life insurance is either a term or permanent policy insuring two or more lives with the proceeds payable on the first death. Survivorship life or second-to-die life is a whole life policy insuring two lives with the proceeds payable on the second (later) death. Single premium whole life is a policy with only one premium which is payable at the time the policy is issued. Modified whole life is a whole life policy that charges smaller premiums for a specified period of time after which the premiums increase for the remainder of the policy. Group life insurance is term insurance covering a group of people, usually employees of a company or members of a union or association. Individual proof of insurability is not normally a consideration in the underwriting. Rather, the underwriter considers the size and turnover of the group, and the financial strength of the group. Contract provisions will attempt to exclude the possibility of adverse selection. Group life insurance often has a provision that a member exiting the group has the right to buy individual insurance coverage.
Senior and preneed productsInsurance companies have in recent years developed products to offer to niche markets, most notably targeting the senior market to address needs of an aging population. Many companies offer policies tailored to the needs of senior applicants. These are often low to moderate face value whole life insurance policies, to allow a senior citizen purchasing insurance at an older issue age an opportunity to buy affordable insurance. This may also be marketed as final expense insurance, and an agent or company may suggest (but not require) that the policy proceeds could be used for end-of-life expenses. Preneed (or prepaid) insurance policies are whole life policies that, although available at any age, are usually offered to older applicants as well. This type of insurance is designed specifically to cover funeral expenses when the insured person dies. In many cases, the applicant signs a prefunded funeral arrangement with a funeral home at the time the policy is applied for.
The death proceeds are then guaranteed to be directed first to the funeral services provider for payment of services rendered. Most contracts dictate that any excess proceeds will go either to the insured's estate or a designated beneficiary. These products are sometimes assigned into a trust at the time of issue, or shortly after issue. The policies are irrevocably assigned to the trust, and the trust becomes the owner. Since a whole life policy has a cash value component, and a loan provision, it may be considered an asset; assigning the policy to a trust means that it can no longer be considered an asset for that individual. This can impact an individual's ability to qualify for Medicare or Medicaid.
Investment policies
With-profits policies
Main article: With-profits policySome policies allow the policyholder to participate in the profits of the insurance company these are with-profits policies. Other policies have no rights to participate in the profits of the company, these are non-profit policies. With-profits policies are used as a form of collective investment to achieve capital growth. Other policies offer a guaranteed return not dependent on the company's underlying investment performance; these are often referred to as without-profit policies which may be construed as a misnomer.
Insurance/Investment Bonds
Main article: Insurance bond
PensionsPensions are a form of life assurance. However, whilst basic life assurance, permanent health insurance and non-pensions annuity business includes an amount of mortality or morbidity risk for the insurer, for pensions there is a longevity risk. A pension fund will be built up throughout a person's working life. When the person retires, the pension will become in payment, and at some stage the pensioner will buy an annuity contract, which will guarantee a certain pay-out each month until death.
AnnuitiesAn annuity is a contract with an insurance company whereby the purchaser pays an initial premium or premiums into a tax-deferred account, which pays out a sum at pre-determined intervals. There are two periods: the accumulation (when payments are paid into the account) and the annuitization (when the insurance company pays out). For example, a policy holder may pay £10,000, and in return receive £150 each month until he dies; or £1,000 for each of 14 years or death benefits if he dies before the full term of the annuity has elapsed. Tax penalties and insurance company surrender charges may apply to premature withdrawals (if indeed these are allowed; in most markets outside the U.S. the policy owner has no right to end the contract prematurely).
Tax and life insurance
Taxation of life insurance in the United StatesPremiums paid by the policy owner are normally not deductible for federal and state income tax purposes. Proceeds paid by the insurer upon death of the insured are not includible in taxable income for federal and state income tax purposes; however, if the proceeds are included in the "estate" of the deceased, it is likely they will be subject to federal and state estate and inheritance tax. Cash value increases within the policy are not subject to income taxes unless certain events occur. For this reason, insurance policies can be a legal and legitimate tax shelter wherein savings can increase without taxation until the owner withdraws the money from the policy. On flexible-premium policies, large deposits of premium could cause the contract to be considered a "Modified Endowment Contract" by the IRS, which negates many of the tax advantages associated with life insurance. The insurance company, in most cases, will inform the policy owner of this danger before applying their premium. Tax deferred benefit from a life insurance policy may be offset by its low return or high cost in some cases. This depends upon the insuring company, type of policy and other variables (mortality, market return, etc.).
Also, other income tax saving vehicles (i.e. IRA, 401K or Roth IRA) appear to be better alternatives for value accumulation, at least for more sophisticated investors who can keep track of multiple financial vehicles. The combination of low-cost term life insurance and higher return tax-efficient retirement accounts can achieve better performance, assuming that the insurance itself is only needed for a limited amount of time. The tax ramifications of life insurance are complex. The policy owner would be well advised to carefully consider them. As always, Congress or the state legislatures can change the tax laws at any time.
Taxation of life assurance in the United KingdomPremiums are not usually allowable against income tax or corporation tax, however qualifying policies issued prior to 14 March 1984 do still attract LAPR (Life Assurance Premium Relief) at 15% (with the net premium being collected from the policyholder). Non-investment life policies do not normally attract either income tax or capital gains tax on claim. If the policy has as investment element such as an endowment policy, whole of life policy or an investment bond then the tax treatment is determined by the qualifying status of the policy. Qualifying status is determined at the outset of the policy if the contract meets certain criteria.
Essentially, long term contracts (10 years plus) tend to be qualifying policies and the proceeds are free from income tax and capital gains tax. Single premium contracts and those run for a short term are subject to income tax depending upon your marginal rate in the year you make a gain. All (UK) insurers pay a special rate of corporation tax on the profits from their life book; this is deemed as meeting the lower rate (20% in 2005-06) liability for policyholders. Therefore if you are a higher rate taxpayer (40% in 2005-06), or become one through the transaction, you must pay tax on the gain at the difference between the higher and the lower rate. This gain may be reduced by applying a complicated calculation called top-slicing based on the number of years you have held the policy. Although this is complicated, the taxation of life assurance based investment contracts may be beneficial compared to alternative equity based collective investment schemes (unit trusts, investment trusts and OEICs). One feature which especially favors investment bonds is the ability to draw 5% of the original investment amount each policy year without being subject to any taxation on the amount withdrawn. The withdrawal is deemed by HMRC (Her Majesty's Revenue and Customs) to be a payment of capital and therefore the tax calculation is deferred until further encashment above the 5% limit. This is an especially useful tax planning tool for higher rate taxpayers who expect to become basic rate taxpayers at some predictable point in the future (e.g. retirement). The proceeds of a life policy will be included in the estate for inheritance tax (IHT) purposes. Policies written in trust may fall outside the estate for IHT purposes but it's not always that simple. If in doubt you should seek profession advice from an IFA (Independent Financial Adviser) who is registered with the government regulator: the Financial Services Authority.
Pension Term AssuranceAlthough available before April 2006, from this date pension term assurance became widely available in the UK, only to then largely be withdrawn in December 2006. Pension term assurance is effectively term life assurance with tax relief on the premiums. All premiums are paid net of basic rate tax at 22%, and higher rate tax payers can gain an extra 18% tax relief via their tax return. Although not suitable for all, PTA briefly became one of the most common forms of life assurance sold in the UK, before tax law changed in December 2006 to take away the tax advantages.
HistoryInsurance began as a way of reducing the risk of traders, as early as 5000 BC in China and 4500 BC in Babylon. Life insurance dates only to ancient Rome; "burial clubs" covered the cost of members' funeral expenses and helped survivors monetarily. Modern life insurance started in late 17th century England, originally as insurance for traders: merchants, ship owners and underwriters met to discuss deals at Lloyd's Coffee House, predecessor to the famous Lloyd's of London. The first insurance company in the United States was formed in Charleston, South Carolina in 1732, but it provided only fire insurance. The sale of life insurance in the U.S. began the late 1760s. The Presbyterian Synods in Philadelphia and New York created the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759; Episcopalian priests organized a similar fund in 1769. Between 1787 and 1837 more than two dozen life insurance companies were started, but fewer than half a dozen survived. Prior to the American Civil War, many insurance companies in the United States insured the lives of slaves for their owners. In response to bills passed in California in 2001 and in Illinois in 2003, the companies have been required to search their records for such policies. New York Life for example reported that Nautilus sold 485 slaveholder life insurance policies during a two-year period in the 1840s; they added that their trustees voted to end the sale of such policies 15 years before the Emancipation Proclamation.
Market trends
Life insurance premiums written in 2005According to a study by Swiss Re, EU was the largest market for life insurance premiums written in 2005 followed by the USA and Japan.
CriticismAlthough some aspects of the application process (such as underwriting and insurable interest provisions) make it difficult, life insurance policies have been used in cases of exploitation and fraud. In the case of life insurance, there is a motivation to purchase a life insurance policy, particularly if the face value is substantial, and then kill the insured. The television series Forensic Files has included episodes that feature this scenario. There was also a documented case in 2006, where two elderly women are accused of taking in homeless men and assisting them. As part of their assistance, they took out life insurance on the men. After the contestability period ended on the policies (most life contracts have a standard contestability period of two years), the women are alleged to have had the men killed via hit-and-run car crashes. [9] Recently, viatical settlements have thrown the life insurance industry into turmoil. A viatical settlement involves the purchase of a life insurance policy from an elderly or terminally ill policy holder. The policy holder sells the policy (including the right to name the beneficiary) to a purchaser for a price discounted from the policy value. The seller has cash in hand, and the purchaser will realize a profit when the seller dies and the proceeds are delivered to the purchaser. In the meantime, the purchaser continues to pay the premiums. Although both parties have reached an agreeable settlement, insurers are troubled by this trend. Insurers calculate their rates with the assumption that a certain portion of policy holders will seek to redeem the cash value of their insurance policies before death.
They also expect that a certain portion will stop paying premiums and forfeit their policies. However, viatical settlements ensure that such policies will with absolute certainty be paid out. Some purchasers, in order to take advantage of the potentially large profits, have even actively sought to collude with uninsured elderly and terminally ill patients, and created policies that would have not otherwise been purchased. Likewise, these policies are guaranteed losses from the insurers' perspective. Thus, insurers will need to raise rates in order to protect themselves from such trends.
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