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Health Insurence

The term health insurance is generally used to describe a form of insurance that pays for medical expenses. It is sometimes used more broadly to include insurance covering disability or long-term nursing or custodial care needs. It may be provided through a government-sponsored social insurance program, or from private insurance companies. It may be purchased on a group basis (e.g., by a firm to cover its employees) or purchased by individual consumers. In each case, the covered groups or individuals pay premiums or taxes to help protect themselves from high or unexpected healthcare expenses. Similar benefits paying for medical expenses may also be provided through social welfare programs funded by the government.Health insurance works by estimating the overall risk of healthcare expenses and developing a routine finance structure (such as a monthly premium or annual tax) that will ensure that money is available to pay for the healthcare benefits specified in the insurance agreement. The benefit is administered by a central organization, most often either a government agency or a private or not-for-profit entity operating a health plan.

Auto insurence in the United States

Coverage availableThe consumer may be protected with different coverage types depending on what coverage the insured purchases. Some states require that motorists carry minimum levels of auto insurance coverage in order to ensure that its drivers can cover the cost of damages to people or property in the event of an automobile accident. Some states, such as Wisconsin, have more flexible “proof of financial responsibility” requirements.In the United States, liability insurance covers claims against the policy holder and generally, any other operator of the insured vehicles provided, do not live at the same address as the policy holder, and are not specifically excluded on the policy. In the case of those living at the same address, they must specifically be covered on the policy. Thus it is necessary for example, when a family member comes of driving age they must be added on to the policy. Liability insurance sometimes does not protect the policy holder if they operate any vehicles other than their own. When you drive a vehicle owned by another party, you are covered under that party’s policy. Non-owners policies may be offered that would cover an insured on any vehicle they drive. This coverage is available only to those who do not own their own vehicle and is sometimes required by the government for drivers who have previously been found at fault in an accident.Generally, liability coverage extends when you rent a car. Comprehensive policies ("full coverage") usually also apply to the rental vehicle, although this should be verified beforehand. Full coverage premiums are based on, among other factors, the value of the insured’s vehicle. This coverage, however, cannot apply to rental cars because the insurance company does not want to assume responsibility for a claim greater than the value of the insured’s vehicle, assuming that a rental car may be worth more than the insured’s vehicle. Most rental car companies offer insurance to cover damage to the rental vehicle. These policies may be unnecessary for many customers as credit card companies, such as Visa and MasterCard, now provide supplemental collision damage coverage to rental cars if the transaction is processed using one of their cards. These benefits are restrictive in terms of the types of vehicles covered.LiabilityLiability coverage provides up to a fixed dollar amount of coverage for damages that an insured driver becomes legally liable to pay due to an accident or other negligence. For example, if an insured driver drives into a telephone pole and damages the pole, liability coverage pays for the damage to the pole. In this example, the drivers insured may also become liable for other expenses related to damaging the telephone pole, such as loss of service claims (by the telephone company).Liability coverage is available either as a combined single limit policy, or as a split limit policy:Combined single limitA combined single limit combines property damage liability coverage and bodily injury coverage under one single combined limit. For example, an insured driver with a combine single liability limit strikes another vehicle and injures the driver and the passenger. Payments for the damages to the other driver's car, as well as payments for injury claims for the driver and passenger, would be paid out under this same coverage.Split limitsA split limit liability coverage policy splits the coverages into property damage coverage and bodily injury coverage. In the example given above, payments for the other driver's vehicle would be paid out under property damage coverage, and payments for the injuries would be paid out under bodily injury coverage.Bodily injury liability coverage is also usually split as well into a maximum payment per person and a maximum payment per accident.CollisionCollision coverage provides coverage for an insured's vehicle that is involved in an accident, subject to a deductible. This coverage is designed to provide payments to repair the damaged vehicle, or payment of the cash value of the vehicle if it is not repairable. Collision coverage is optional. Collision Damage Waiver (CDW) is the term used by rental car companies for collision coverage.ComprehensiveComprehensive (a.k.a. - Other Than Collision) coverage provides coverage, subject to a deductible, for an insured's vehicle that is damaged by incidents that are not considered Collisions. For example, fire, theft (or attempted theft), vandalism, weather, or impacts with animals are types of Comprehensive losses.Uninsured/underinsured coverageUnderinsured coverage, also known as UM/UIM, provides coverage if another at-fault party either does not have insurance, or does not have enough insurance. In effect, your insurance company pays as would the at fault party's insurance company for your damages, Then would subrogate from the at fault party.In the United States, the definition of an uninsured/underinsured motorist, and corresponding coverages, are set by state laws.Loss of useLoss of use coverage, also known as rental coverage, provides reimbursement for rental expenses associated with having an insured vehicle repaired due to a covered loss.Loan/lease payoffLoan/lease payoff coverage, also known as GAP coverage or GAP insurance,[15][16] was established in the early 1980s to provide protection to consumers based upon buying and market trends.Due to the sharp decline in value immediately following purchase, there is generally a period in which the amount owed on the car loan exceeds the value of the vehicle, which is called "upside-down" or negative equity. Thus, if the vehicle is damaged beyond economical repair at this point, the owner will still owe potentially thousands of dollars on the loan. The escalating price of cars, longer-term auto loans, and the increasing popularity of leasing gave birth to GAP protection. GAP waivers provide protection for consumers when a "gap" exists between the actual value of their vehicle and the amount of money owed to the bank or leasing company. In many instances, this insurance will also pay the deductible on the primary insurance policy. These policies are often offered at the auto dealership as a comparatively low cost add on that can be put into the car loan which provides coverage for the duration of the loan.Consumers should be aware that a few states, including New York, require lenders of leased cars to include GAP insurance within the cost of the lease itself. This means that the monthly price quoted by the dealer must include GAP insurance, whether it is delineated or not. Nevertheless, unscrupulous dealers sometimes prey on unsuspecting individuals by offering them GAP insurance at an additional price, on top of the monthly payment, without mentioning the State's requirements.In addition, some vendors and insurance companies offer what is called "Total Loss Coverage." This is similar to ordinary GAP insurance but differs in that instead of paying off the negative equity on a vehicle that is a total loss, the policy provides a certain amount, usually up to $5000, toward the purchase or lease of a new vehicle. Thus, to some extent the distinction makes no difference, i.e., in either case the owner receives a certain sum of money. However, in choosing which type of policy to purchase, the owner should consider whether, in case of a total loss, it is more advantageous for him or her to have the policy pay off the negative equity or provide a down payment on a new vehicle.For example, assuming a total loss of a vehicle valued at $15,000, but on which the owner owes $20,000, is the "gap" of $5000. If the owner has traditional GAP coverage, the "gap" will be wiped out and he or she may purchase or lease another vehicle or choose not to. If the owner has "Total Loss Coverage," he or she will have to personally cover the "gap" of $5000, and then receive $5000 toward the purchase or lease of a new vehicle, thereby either reducing monthly payments, in the case of financing or leasing, or the total purchase price in the case of outright purchasing. So the decision on which type of policy to purchase will, in most instances, be informed by whether the owner can pay off the negative equity in case of a total loss and/or whether he or she will definitively purchase a replacement vehicle.TowingCar towing coverage is also known as Roadside Assistance coverage. Traditionally, automobile insurance companies have agreed to only pay for the cost of a tow that is related to an accident that is covered under the automobile policy of insurance. This had left a gap in coverage for tows that are related to mechanical breakdowns, flat tires and gas outages. To fill that void, insurance companies started to offer the car towing coverage, which pays for non-accident related tows.

Property insurence

Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance or boiler insurance. Property is insured in two main ways - open perils and named perils. Open perils cover all the causes of loss not specifically excluded in the policy. Common exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism and war. Named perils require the actual cause of loss to be listed in the policy for insurance to be provided. The more common named perils include such damage-causing events as fire, lightning, explosion and theft.

Taxation of life insurence

Premiums 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.

Life insurence

Life 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 insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium. In the United States, the predominant form simply specifies a lump sum to be paid on the insured's demise.As with most insurance policies, life insurance 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:Serious illnessLife 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, 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. A common form of this design is term insurance.Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US anyway) are whole life, universal life and variable life policies.

Travel insurence

Travel insurance is insurance that is intended to cover medical expenses, financial (such as money invested in nonrefundable pre-payments), and other losses incurred while traveling, either within one's own country, or internationally.Travel insurance can usually be arranged at the time of booking of a trip to cover exactly the duration of that trip or a more extensive, continuous insurance can be purchased from (most often) travel insurance companies, travel agents or directly from travel suppliers such as cruiselines or tour operators. However, travel insurance purchased from travel suppliers tends to be less inclusive than insurance offered by insurance companies.Travel insurance often offers coverage for a variety of travelers. Student travel, business travel, leisure travel, adventure travel, cruise travel, and international travel are all various options that can be insured.The most common risks that are covered by travel insurance are:Medical expensesEmergency evacuation/repatriationOverseas funeral expensesAccidental death, injury or disablement benefitCancellationCurtailmentDelayed departureLoss, theft or damage to personal possessions and money (including travel documents)Delayed baggage (and emergency replacement of essential items)Legal assistancePersonal liability and rental car damage excessSome travel policies will also provide cover for additional costs, although these vary widely between providers.And in addition, often separate insurance can be purchased for specific costs such as:pre-existing medical conditions (e.g. asthma, diabetes)high risk sports (e.g. skiing, scuba-diving)travel to high risk countries (e.g. due to war or natural disasters or acts of terrorism)Common Exclusions:pre-existing medical conditionswar or terrorism - but some plans may cover this riskpregnancy related expensesinjury or illness caused by alcohol or drug useTravel insurance can also provide helpful services, often 24 hours a day, 7 days a week that can include concierge services and emergency travel assistance.Typically travel insurance for the duration of a journey costs approximately 5-7% of the cost of the trip

Marine insurence

Marine Insurance covers the loss or damage of ships, cargo, terminals, and any transport or property by which cargo is transferred, acquired, or held between the points of origin and final destination.Cargo insurance--discussed here--is a sub-branch of marine insurance, though Marine also includes Onshore and Offshore exposed property (container terminals, ports, oil platforms, pipelines); Hull; Marine Casualty; and Marine Liability.Origins of Formal Marine InsuranceThe modern origins of marine insurance law were in the law merchant, with the establishment in England in 1601 of a specialised chamber of assurance separate from the other Courts. Lord Mansfield, Lord Chief Justice in the mid-eighteenth century, began the merging of law merchant and common law principles. The establishment of Lloyd's of London, competitor insurance companies, a developing infrastructure of specialists (such as shipbrokers, admiralty lawyers, and bankers), and the growth of the British Empire gave English law a prominence in this area which it largely maintains and forms the basis of almost all modern practice. The growth of the London insurance market led to the standardisation of policies and judicial precedent further developed marine insurance law. In 1906 the Marine Insurance Act was passed which codified the previous common law; it is both an extremely thorough and concise piece of work. Although the title of the Act refers to marine insurance, the general principles have been applied to all non-life insurance.In the 19th. century, Lloyd's and the Institute of London Underwriters (a grouping of London company insurers) developed between them standardised clauses for the use of marine insurance, and these have been maintained since. These are known as the Institute Clauses because the Institute covered the cost of their publication.Within the overall guidance of the Marine Insurance Act and the Institute Clauses parties retain a considerable freedom to contract between themselves.Marine insurance is the oldest type of insurance. Out of it grew non-marine insurance and reinsurance. It traditionally formed the majority of business underwritten at Lloyd's. Nowadays, Marine insurance is often grouped with Aviation and Transit (ie. cargo) risks, and in this form is known by the acronym 'MAT'.PracticeThe Marine Insurance Act includes, as a schedule, a standard policy (known as the 'SG form'), which parties were at liberty to use if they wished. Because each term in the policy had been tested through at least two centuries of judicial precedent, the policy was extremely thorough. However, it was also expressed in rather archaic terms. In 1991, the London market produced a new standard policy wording known as the MAR 91 form and using the Institute Clauses. The MAR form is simply a general statement of insurance; the Institute Clauses are used to set out the detail of the insurance cover. In practice, the policy document usually consists of the MAR form used as a cover, with the Clauses stapled to the inside. Typically each clause will be stamped, with the stamp overlapping both onto the inside cover and to other clauses; this practice is used to avoid the substitution or removal of clauses.Because marine insurance is typically underwritten on a subscription basis, the MAR form begins: We, the Underwriters, agree to bind ourselves each for his own part and not one for another [...]. In legal terms, liability under the policy is several and not joint; ie. The underwriters are all liable together, but only for their share or proportion of the risk. If one underwriter should default, the remainder are not liable to pick his share of the claim.Typically, marine insurance is split between the vessels and the cargo. Insurance of the vessels is generally known as 'Hull and Machinery' (H&M). A more restricted form of cover is 'Total Loss Only' (TLO), generally used as a reinsurance, which only covers the total loss of the vessel and not any partial loss.Cover may be on either a 'voyage' or 'time' basis. The 'voyage' basis covers transit between the ports set out in the policy; the 'time' basis covers a period of time, typically one year, and is more common.Protection and indemnityA marine policy typically covered only three-quarter of the insured's liabilities towards third parties. The typical liabilities arise in respect of collision with another ship, known as 'running down' (collision with a fixed object is an 'allision'), and wreck removal (a wreck may serve to block a harbour, for example).In the 19th century, shipowners banded together in mutual underwriting clubs known as Protection and Indemnity Clubs (P&I), to insure the remaining one-quarter liability amongst themselves. These Clubs are still in existence today and have become the model for other specialised and uncommercial marine and non-marine mutuals, for example in relation to oil pollution and nuclear risks.Clubs work on the basis of agreeing to accept a shipowner as a member and levying an initial 'call' (premium). With the fund accumulated, reinsurance will be purchased; however, if the loss experience is unfavourable one or more 'supplementary calls' may be made. Clubs also typically try to build up reserves, but this puts them at odds with their mutual status.Because liability regimes vary throughout the world, insurers are usually careful to limit or exclude American Jones Act liability.Actual Total Loss and Constructive Total LossThese two terms are used to differentiate the degree of proof where a vessel or cargo has been lost.An Actual Total Loss refers to the situation where the position is clear and a Constructive Total Loss refers to the situation where a loss is inferred. In practice, a Constructive Total Loss might also be used to describe a loss where the cost of repair is not economic; ie a 'write-off'.The different terms refer to the difficulties of proving a loss where there might be no evidence of such a loss. In this respect, marine insurance differs from non-marine insurance, where the insured is required to prove his loss. Traditionally, in law, marine insurance was seen as an insurance of 'the adventure', with insurers having a stake and an interest in the vessel and/ or the cargo rather than, simply, an interest in the financial consequences of the subject-matter's survival.AverageThe term 'Average' has two meanings:(1) In marine insurance, in the case of a partial loss, or emergency repairs to the vessel, average may be declared. This covers situations, where, for example, a ship in a storm might have to jettison certain cargo to protect the ship and the remaining cargo. 'General Average' requires all cargo owners to contribute to compensate the losses caused to those whose cargo has been lost or damaged. 'Particular Average' is levied on a group of cargo owners and not all of the cargo owners.(2) In the situation where an insured has under-insured, ie. insured an item for less than it is worth, average will apply to reduce the amount payable. There are different ways of calculating average, but generally the same proportion of under-insurance will be applied to any payout due.An average adjuster is a marine claims specialist responsible for adjusting and providing the general average statement. He is usually appointed by the shipowner or insurer.Excess, Deductible, Retention, Co-Insurance, and FranchiseAn Excess is the amount payable by the insured and is usually expressed as the first amount falling due, up to a ceiling, in the event of a loss. An excess may or may not be applied. It may be expressed in either monetary or percentage terms. An excess is typically used to discourage moral hazard and to remove small claims, which are disproportionately expensive to handle. The equivalent term to 'excess' in marine insurance is 'deductible' or 'retention'.A co-insurance, which is typically applied in non-proportional treaty reinsurance, is an excess expressed as a proportion of a claim, e.g. 5%, and applied to the entirety of a claim.A franchise is a deductible below which nothing is payable and beyond which the entire amount of the sum insured is payable. It is typically used in reinsurance arbitrage arrangements.Tonners and ChinamenThese are both obsolete forms of early reinsurance. Both are technically unlawful, as not having insurable interest, and so were unenforceable in law. Policies were typically marked P.P.I. (Policy is Proof of Interest). Their use continued into the 1970s before they were banned by Lloyd's, the main market, by which time, they had become nothing more than crude bets.A 'tonner' was simply a 'policy' setting out the global gross tonnage loss for a year. If that loss was reached or exceeded, the policy paid out. A 'chinaman' applied the same principle but in reverse: thus, if the limit was not reached, the policy paid out.Specialist PoliciesVarious types of specialist policy exist, including:Newbuilding risks: This covers the risk of damage to the hull whilst it is under construction.Yacht Insurance: Insurance of pleasure craft is generally known as 'yacht insurance' and includes liability coverage. Smaller vessels, such as yachts and fishing vessels, are typically underwritten on a 'binding authority' or 'lineslip' basis.War risks: Usual Hull insurance does not cover the risks of a vessel sailing into a war zone. A typical example is the risk to a tanker sailing in the Persian Gulf during the Gulf War. War risks cover protects, at an additional premium, against the danger of loss in a war zone. The war risks areas are established by the London-based Joint War Committee, which has recently moved to include the Malacca Straits as a war risks area due to piracy.Increased Value (IV): Increased Value cover protects the shipowner against any difference between the insured value of the vessel and the market value of the vessel.Overdue insurance: This is a form of insurance now largely obsolete due to advances in communications. It was an early form of reinsurance and was bought by an insurer when a ship was late at arriving at her destination port and there was a risk that she might have been lost (but, equally, might simply have been delayed). The overdue insurance of the Titanic was famously underwritten on the doorstep of Lloyd's.Cargo insurance: Cargo insurance is underwritten on the Institute Cargo Clauses, with coverage on an A, B, or C basis, A having the widest cover and C the most restricted. Valuable cargo is known as specie.Warranties and ConditionsA peculiarity of marine insurance, and insurance law generally, is the use of the terms condition and warranty. In English law, a condition typically describes a part of the contract that is fundamental to the performance of that contract, and, if breached, breaches the contract as a whole. By contrast, a warranty is not fundamental to the performance of the contract and breach of a warranty will not lead to a breach of the contract. The meaning of these terms is reversed in insurance law. Thus, the Marine Insurance Act 1906 refers to implied warranties, one of the most important of which is that the vessel is seaworthy.Salvage and PrizesThe term 'salvage' refers to the practice of rendering aid to a vessel in distress. Apart from the consideration that the sea is traditionally 'a place of safety', with sailors honour-bound to render assistance as required, it is obviously in underwriters' interests to encourage assistance to vessels in danger of being wrecked. A policy will usually include a 'sue and labour' clause which will cover the reasonable costs incurred by a shipowner in his avoiding a greater loss.At sea, a ship in distress will typically agree to 'Lloyd's Open Form' with any potential salvor. The Lloyd's Open Form is the standard contract, although other forms exist. The Lloyd's Open Form is headed 'No cure - no pay'; the intention being that if the attempted salvage is unsuccessful, no award will be made. However, this principle has been weakened in recent years, and awards are now permitted in cases where, although the ship might have sunk, pollution has been avoided or mitigated. In other circumstances the "salvor" may envoke the SCOPIC terms (most recent and commonly used rendition is SCOPIC 2000) in contrast to the LOF (Lloyd's Open Form) these terms mean that the salvor will be paid even if the salvage attempt is unsuccessful. The amount the salvor receives is limited to cover the costs of the salavage attempt only. One of the main negative factors in envoking SCOPIC (on the salvors behalf) is if the salvage attempt is successful the amount at which the salvor can claim under article 13 of LOF is discounted.The Lloyd's Open Form, once agreed, allows salvage attempts to begin immediately. The extent of any award is determined later; although the standard wording refers to the Chairman of Lloyd's arbitrating any award, in practice the role of arbitrator is passed to specialist admiralty QCs.A ship captured in war is referred to as a prize, and the captors entitled to prize money. Again this risk is covered by standard policies.Marine Insurance Act, 1906The most important sections of this Act include:s.4: a policy without insurable interest is void.s.17: imposes a duty on the insured of uberrimae fides (as opposed to caveat emptor); ie. that questions must be answered honestly and the risk not misrepresented.s.18: the proposer of the insurer has a duty to disclose all material facts relevant to the acceptance and rating of the risk. Failure to do so is known as non-disclosure or concealment (there are minor differences in the two terms) and renders the insurance voidable by the insurer.s.33(3): If [a warranty] be not [exactly] complied with, then, subject to any express provision in the policy, the insurer is discharged from liability as from the date of the breach of warranty, but without prejudice to any liability incurred by him before that date.s.34(2): where a warranty has been broken, it is no defence to the insured that the breach has been remedied, and the warranty complied with, prior to the loss.s.34(3): a breach of warranty may be waived (ie. ignored) by the insurer.s.50: a policy may be assigned. Typically, a shipowner might assign the benefit of a policy to the ship-mortgagor.ss.60-63: deals with the issues of a constructive total loss. The insured can, by notice, claim for a constructive total loss with the insurer becoming entitled to the ship or cargo if it should later turn up. (By contrast an actual total loss describes the physical destruction of a vessel or cargo.)s.79: deals with subrogation; ie. the rights of the insurer to stand in the shoes of an indemnified insured and recover salvage for his own benefit.

Casualty insurence

Casualty insurance policies are written to cover loss that is the direct result of accident. It may include Auto liability insurance for car accidents, Marine insurance for shipwrecks or losses at sea, and etc. Life, health and property insurance are typically excluded from the definition. Loosely used to describe an area of insurance not particularly or directly concerned with life insurance, fire insurance or automobile insurance. Most frequently it refers to liability, crime and plate glass insurance but may include surety as well.SegmentsIt also includes other insurance coverages such as:liability insurancepolitical risk insuranceterrorism insurancefidelity and surety bonds.earthquakecyber liability

Political Risk insurence

Political risk insurance is a type of insurance that can be taken out by businesses, of any size, against political risk—the risk that revolution or other political conditions will result in a loss.Political risk insurance is available for several different types of political risk, including (among others):Political violence, such as revolution, insurrection, civil unrest, terrorism or war;Governmental expropriation or confiscation of assets;Governmental frustration or repudiation of contracts;Wrongful calling of letters of credit or similar on-demand guarantees; andInconvertibility of foreign currency or the inability to repatriate funds.As with any insurance, the precise scope of coverage is governed by the terms of the insurance policy.The underwriting of political risk insurance is a dynamic, growing business. As globalisation increases, there are more corporations doing more business in more places around the world with each passing year. Some of the changes occurring in the business are high growth, new product offerings, and a greater role for private capital.While political risk insurance policies are sometimes manuscripted for specific situations, the major political risk insurers have standard forms for the coverages that they issue.

Terrorism insurence

Terrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorist activities.It is considered to be a difficult product for insurance companies, as the odds of terrorist attacks are very difficult to predict and the potential liability enormous. For example the September 11, 2001 attacks resulted in an estimated $31.7 billion loss. This combination of uncertainty and potentially huge losses makes the setting of premiums a difficult matter. Most insurance companies therefore exclude terrorism from coverage in Casualty and Property insurance, or else require endorsments to provide coverage.On December 26, 2007, the President of the United States signed into law the Terrorism Risk Insurance Program Reauthorization Act of 2007 which extends the Terrorism Risk Insurance Act (TRIA) through December 31, 2014. The law extends the temporary federal Program that provides for a transparent system of shared public and private compensation for insured losses resulting from acts of terrorism.The United States insurance market offers coverage to the majority of large companies which ask for it in their polices. The price of the policy depends on where the clients are residing and how much limit they buy.Industry NeedsConcentration of risk is another factor in determining availability for terrorism insurance. Due to the concentrated losses of the World Trade Center, carriers were hit with large losses in one centralized location. Insurers seek to spread the coverage over a wider geographic area than as with other aggregate perils, such as flood.Modeling the RisksInsurance companies are using an approach that is similar to that used with natural catastrophe risks. A Swiss Re report suggested that in this case where demand is greater than the supply for terrorism coverage that a short-term solution is possible: a mix of government and private resource to make easy the transition. In this situation, the government would serve two functions: to establish rules to overcome the capacity shortage and to be the insurer of last resort.Crisis ManagementCrisis management planning can save large amounts money in the long run. According to experts, for every dollar spent on developing crisis management plan a head of time, $7 is saved in losses when a disaster comes.NetherlandsInsurance payments related to terrorism are restricted to a billion euro per year for all insurance companies together. This regards property insurance, but also life insurance, medical insurance, etc.USAccording to The Economist, one of the best studies to understand TRIA has been the one undertaken in 2005 by the Center for Risk Management at the Wharton Business School ("TRIA and Beyond"; available on their website below).In mid-2007 the idea of another extension to TRIA was tabled and is officially known as TRIREA, (Terrorism Risk Insurance Revision and Extension Act). Initially TRIREA contained several new provisions including a mandatory 'make available' clause for NCBR coverge (Nuclear, Chemical, Biological and Radiological) and the ending of the distinction between domestic and foreign events.IraqThe New York Times reports that in Baghdad personal terrorism insurance is available. One company offers such insurance for $90, and if the customer is a victim of terrorism in the next year, it pays the heirs $3,500.Countries With Long-Term Terrorism Insurance ProgrammesAccording to the policy agenda of The Real Estate Roundtable, the following countries are the only ones in the world with long-term terrorism insurance.AustraliaAustriaFinlandFranceGermanyIsraelNamibiaNetherlandsRussiaSouth AfricaSpainSwitzerlandTurkeyUnited Kingdom

Fidelity bond

A fidelity bond is a form of protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.While called bonds, these obligations to protect an employer from employee-dishonesty losses are really insurance policies. These insurance policies protect from losses of company monies, securities, and other property from employees who have a manifest intent to cause the company loss. There are also many other forms of crime-insurance policies (burglary, fire, general theft, computer theft, disappearance, fraud, forgery, etc.) to protect company assets.

Disability insurence

Disability insurance, often called disability income insurance, is a form of insurance that insures the beneficiary's earned income against the risk that disability will make working (and therefore earning) impossible. In other words, it answers the question, "How would I pay for my living expenses if I became unable to work?"Types of disability insuranceNational social insurance programsIn most developed countries, the single most important form of disability insurance is that provided by the national government for all citizens. For example, the UK's version is part of the National Insurance; the U.S.'s version is Social Security (SS)—specifically, several parts of SS including Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). These programs provide a floor beneath all the other piecemeal forms of disability insurance in our societies. In other words, they are the safety net that catches everyone who was either (a) otherwise uninsured or (b) otherwise underinsured. As such, they are very large, very important programs, with a lot of beneficiaries. The general theory of the benefit formula is that the benefit is not large but is enough to prevent abject poverty.Employer-supplied disability insuranceSince one of the top reasons for becoming disabled is getting hurt on the job, it is not surprising that the second-most important form of disability insurance is that provided by employers to cover their employees. There are several subtypes that may or may not be separate parts of the benefits package: workers' compensation and more general (but very basic) disability insurance policies.Workers' compensationWorkers' compensation (also known by variations of that name, e.g., workman's comp, workmen's comp, worker's comp, compo) offers payments to employees who are (usually temporarily, rarely permanently) unable to work because of a job-related injury. However, workers' compensation is in fact more than just income insurance, because it may pay compensation for economic loss (past and future), reimbursement or payment of medical and like expenses (functioning in this case as a form of health insurance), general damages for pain and suffering, and benefits payable to the dependents of workers killed during employment (functioning in this case as a form of life insurance).More general (but very basic) disability insuranceThese policies offer payments to employees who are (usually temporarily, rarely permanently) unable to work because of any injury or illness, even if it is not job-related. Unlike workers' compensation, this coverage may not involve any aspect of health insurance, life insurance, or payments for pain and suffering. Similarly to most employer-supplied health insurance, these plans are essentially just open-market plans with the advantage of a negotiated group rate. That is, they are similar to what an individual would buy, but they are purchased with a volume discount. Another general fact about them is that they tend to offer rather basic, low-end coverage, essentially because most people balk at paying for anything more. Sometimes each employee has the option to buy upgraded coverage if they are willing to pay for it.Veterans' benefitsThe various kinds of compensation and insurance that are provided to military veterans by organizations such as the U.S. Department of Veterans Affairs (VA) are very much analogous to workers' compensation, with soldiers, sailors, and marines being the analogues of the worker. In both cases, the overall compensation system involves more than just one type of insurance, but rather encompasses health insurance, disability income insurance, life insurance, and even mortgage insurance on VA mortgages. The scope of each of these is limited. For example, the life insurance aspect is limited only to paying (rather small) survivors' benefits to survivors of veterans killed in the course of their service; it is not a general term life policy.Newsweek magazine's cover story for the issue of March 05, 2007 discusses the problems that American veterans of the wars in Afghanistan and Iraq are currently facing in receiving their VA benefits. The article tells the story of one veteran who waited 17 months to start receiving payments from the disability income insurance aspect of his VA coverage. Another article, in the New York Times, points out that besides the long waits, there are also inequalities based on which state a vet is from and whether he or she is regular army, National Guard, or Reserve.[1] The Newsweek article says that even when a veteran manages to get his or her claim approved (which can be burdensome),"The compensation is not huge. A veteran with a disability rating of 100 percent gets about $2,400 a month—more if he or she has children. A 50 percent rating brings in around $700 a month. But for many returning servicemen burdened with wounds, it is, initially at least, their sole income."According to a sidebar in the same Newsweek article, the Americans injured in these wars, for all the obstacles to proper care, will still probably receive much better compensation and healthcare in years to come than injured Afghani or Iraqi soldiers. And of the two groups (U.S. disabled vets and middle-eastern disabled vets), the latter group is larger.Individual disability insurance policiesThose whose employers do not provide benefits, and self-employed individuals who desire disability coverage, may purchase their own policies on the open market. Premiums and available benefits for individual coverage vary considerably between different companies, for individuals in different occupations, and by State and Country. In general, premiums are higher for policies that provided more monthly benefit, pay the benefit for a longer period of time, and start payments for benefits more quickly following a disability. Premiums also tend to be higher for policies that define disability in broader terms, meaning the policy would pay benefits in a wider variety of circumstances.Claims: what is covered, and for how longThe important variables regarding claims are listed below. Not every variable matters to every type of disability insurance, but most of these are generally relevant.Was the disability unpredictable (not resulting from previously-known chronic illness)?Was the disability incurred in the course of performing job-related duties?How long is the waiting period before claim payments start?What other insurance policies will pay claims for this event?How much money will be paid per week/month/pay period?For how many weeks/months/pay periods will payments continue?What if the beneficiary is not totally disabled, but only partially?Examples of how each variable may be importantWas the disability unpredictable (not resulting from previously-known chronic illness)?For example, a potential policyholder seeking a regular individual policy on the open market must warrant that he is in good health and to the best of his own knowledge is not currently HIV-positive. The reason is obvious and is not mere discrimination: Someone who is HIV-positive has an unusually high risk of getting sick and missing work over the next 20 years. This is simply a fact. A general principle of insurance is that the policyholder sells risk that, to the best of his knowledge, is not higher than the stated circumstances imply. Withholding relevant circumstances or hiding them is selling something that is not what it is represented to be. Analogies are insider trading using material non-public information and making fraudulent (incomplete or false) seller disclosure in a real estate transaction.Was the disability incurred in the course of performing job-related duties?For example, workers' compensation policies are not obligated to pay claims for disability that is not job-related. Insurance for such risks can indeed be purchased, but because the risks are more inclusive, the premiums are higher. A policyholder always needs to understand what she is or isn't buying with her premium. And the insurer is legally obligated to specify exactly what coverage is or isn't being sold.How long is the waiting period before claim payments start?Because most disability events are temporary, insurance coverage for them is cheaper when the policyholder agrees to wait longer before receiving claim payments. For example, if you break a finger, it may only be 2 months before you are able to do your job again. If you agreed to wait 60 days before receiving claim payments, then the insurer will not have to pay a claim for your event. This reduction to his risk is reflected in the lower price that you paid to purchase coverage (lower premiums).Another important example in this category is that the standard waiting period before starting to collect Social Security's disability benefits is one year.What other insurance policies will pay claims for this event?For example, if an auto accident renders you unable to work for 5 months, your auto insurance policy with Company A may include coverage for lost income during this period. (Often lost-income coverage is a separate rider to the auto insurance policy that you must pay extra for if you choose to have it.) In this case, you may choose to make a claim with Company A and either (1) make another, secondary claim with Company B, who issues your disability income insurance, or (2) decide that the primary claim is enough and avoid making an unnecessary claim with Company B. Sometimes there is a previously established order of priority that rules that Company B is liable for the claim only to the extent that Company A's coverage is not enough.Another important example in this category is that if your injury is someone else's fault, their liability coverage from, say, an auto, home, or personal umbrella policy may pay for your lost income, and therefore you will not make a claim on your own policy.How much money will be paid per week/month/pay period?For example, it is rare for any policy to pay the full amount of the beneficiary's regular salary. (Policies that do are expensive, "high-end-of-the-market"-type policies.) Generally it will pay only some percentage, such as 80%, or it will pay only a flat amount, such as $1500/month, regardless of the normal salary amount. The idea behind this reduced benefit is that it is enough to protect you from mortgage foreclosure, or to keep you from running up huge debts, during your convalescence, even though it is not enough to live a carefree lifestyle on. In return for this trade-off, your premiums are lower. This is a good trade-off when you remember that hopefully, you will never have to make a claim anyway, so why pay higher premiums than you have to?For how many weeks/months/pay periods will payments continue?Most policies in the lower and middle areas of the market will have a cap, for example, 5 years. More expensive policies will pay all the way to the age when the national social insurance program takes over as the primary income source. For example, in the U.S., this is at age 65, when Social Security takes over.What if the beneficiary is not totally disabled, but only partially?Most policies in the lower and middle areas of the market will only pay claims if there is no job that the beneficiary can possibly do. Others, referred to as own-occ policies, will pay the claim as long as you cannot return to your own occupation. Own-occ policies cost more to buy (higher premiums) than non-own-occ, because their claims risk is greater. For example, suppose that your normal job involves lifting heavy boxes and getting paid $4000/month. Then you get injured, and can't lift so much weight. However, you are still capable of doing light assembly work at a workbench for $2000/month. If your policy is a less-expensive model, the insurer will tell you that no claim will be paid, because you are capable of working (although not at your own occupation). But if your policy is an own-occ policy with a claim amount of 75% of your normal salary, it will pay you a claim of $3000/month. This payment will recur monthly until (a) you are able to do your normal job again; or (b) the cap is reached (for example, 5 years later); or (c) you reach age 65 (when the policy ends and you begin collecting Social Security

The 5 Step Guide to Considering Insurance Offered by Credit Card Companies

1.Become knowledgeable about what credit insurance is:
If you own a credit card you have probably been asked by the company if you would like to add credit insurance. Most are unfamiliar with this type of insurance and either decline it or accept it automatically without knowing if it is the right type of insurance for their needs. As with all insurance, determining need is different from person to person because of our different lifestyles and obligations. Credit insurance may be beneficial to some but just an unneeded cost for others depending on one's situation. Knowing what credit insurance is and the different types can help you make an informed decision.
Credit insurance can come in a variety of forms. The four main types are credit life, disability, unemployment, and property:
I.Credit life insurance pays off the debt you owe if you die. The beneficiary of the policy has to be the company that the debt is owed to.
II.Credit disability insurance protects your credit rating by making your monthly minimum payment if you become medically disabled. Usually there is a set time period that payments will be made and additional purchases after the disability will not be included.
III.Involuntary unemployment credit insurance will make your minimum monthly payment if you are laid-off or downsized, and again, purchases after the involuntary unemployment would not be covered.
IV.Credit property insurance usually will completely cancel debt on items you purchased with the credit if the items are completely destroyed by specific incidents listed in the policy and a deductible would not apply for the damages to be paid.

loan is a type of debt

A loan is a type of debt. All material things can be lent; this article, however, focuses exclusively on monetary loans. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.
The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt. A borrower may be subject to certain restrictions known as loan covenants under the terms of the loan.
Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding. Bank loans and credit are one way to increase the money supply.
Legally, a loan is a contractual promise of a debtor to repay a sum of money in exchange for the promise of a creditor to give another sum of money.

Investment or investing

is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. An asset is usually purchased, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it. The word originates in the Latin "vestis", meaning garment, and refers to the act of putting things (money or other claims to resources) into others' pockets. See Invest. The basic meaning of the term being an asset held to have some recurring or capital gains. It is an asset that is expected to give returns without any work on the asset per se.

Breast cancer

Breast cancer is diagnosed with self- and physician-examination of the breasts, mammography, ultrasound testing, and biopsy. There are many types of breast cancer that differ in their capability of spreading to other body tissues (metastasis). Treatment of breast cancer depends on the type and location of the breast cancer, as well as the age and health of the patient. The American Cancer Society recommends that a woman should have a baseline mammogram between the ages of 35 and 40 years. Between 40 and 50 years of age mammograms are recommended every other year. After age 50 years, yearly mammograms are recommended.
Common Misspellings: breast canser

Mortgage

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With more than 7,000 mortgage deals to choose from and with new deals coming in and out of the market place everyday, getting the right mortgage can be confusing so we recommend that you get professional mortgage advice.
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Professional mortgage advice from an authorised UK mortgage advisor
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Whether you are buying a property for the first time, buying a second home, or remortgaging our service caters for those who have good or bad credit or have unusual circumstances e.g. income that is difficult to prove.
Getting a fixed rate mortgage is now one of the most popular choices for both first time homebuyers and those seeking a remortgage. Complete our mortgage quotes enquiry form today, or use our mortgage calculator to compare rates and calculate monthly repayments.

Insurance Quotes

Our Insurance services allow you to compare quotes from leading insurers to help get you the right deal for your circumstances. For car, home, pet and travel insurance you can save up to 25% with some providers by applying online. Leading UK insurance providers include:
AA Car Insurance
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Tesco Travel Insurance
As well getting quotes from leading brands we provide services from leading UK insurance brokers who will take the legwork out of getting the best deal by shopping around the market on your behalf. Get an online insurance quote today & see how much you can save...

London School of Business & Finance

The London School of Business & Finance
Quality is at the centre of every aspect of life at LSBF. Our campus is a centre of excellence that helps students to identify, develop and realise their professional ambitions. Here are five reasons why you should make LSBF your first choice.

NEW CAMPUS: LSBF's state-of-the-art campus at 8/9 Holborn, London, EC1N 2LL is located directly opposite Chancery Lane underground station. Covering over 34,000 sq ft, the campus features hi-tech lecture rooms, over 200 PCs, plus extensive relaxation and private study areas.

The emphasis on excellence
LSBF delivers world-class programmes - whether they are academic (such as our GGSB MBA and MIB) or practical (Sage Line 50, Financial Modelling, Introduction to Bloomberg Terminals among others). Our commitment to excellence brings together leading tutors and experienced professionals in a faculty that provides a unique insight into the world of business, management, finance and marketing.

Employment focused
LSBF places a strong emphasis on preparing students for when they re-enter the world of work. Recognising that they will be operating at a higher level, we focus on developing the practical, communication and interpersonal skills needed by senior executives.

Innovative programmes
LSBF was the first business school in London to offer dual programme MBAs, combining an internationally recognised Masters course with essential professional qualifications in the fields of accounting, finance and marketing. This spirit of innovation continues to drive the development of our unique programme.

International students
LSBF understands the value of diversity in education. We actively encourage a wide mix of students on all our courses. To attract the best from around the globe, we have travelled to over 60 cities in the past year; more than any other European business school.

Our Location
LSBF is located in the heart of London, close to the financial and commercial hub of the UK. LSBF students benefit from our proximity to many major corporate and financial institutions.

A new partnership with Sun Yat Sen University
Ranked in the top 5 out of over 2000 universities in China, LSBF's partnership with Sun Yat Sen University in Guangzhou Province offers students from each institution the opportunity to experience the benefits of cultural and business exchanges. A group of 54 LSBF students has already been selected to travel to China in this year. Click below to find out more

There Are Tons Of Small Business Grants For Womwn…But Where?

There Are Tons Of Small Business Grants For Womwn…But Where?
When starting a small business it can be costly, and finding a
grant if you’re a women isn’t always the easiest thing to do.
Little do most people know, there are millions of dollars just
waiting to be claimed for grants from the government and other
little-known organizations. It can be very difficult to find
the right grant for you, and the place of where to get it, but
with a few clicks you too can easily get access to small
business grants for women.

It is not a secret that women are beginning to own more and more
businesses everyday. Not only this, but these businesses are
becoming just as successful if not more then men’s businesses
are. If you are looking for a grant, don’t be hesitant to look
because of what the business is going to be. There are
literally hundreds to thousands of grants out there for women
wanting to start craft businesses, consulting, brokerage, record
labels and more.

When looking for a grant, there is the option of spending
hundreds of dollars to pay somebody to get you a grant.
However, there are other ways that are completely free, but may
be more time consuming then you would hope. One site that is
worth checking out is The Ladies Club 2000.com. It is required
that you sign up and become a member, free of charge, but then
you will have access to grant information on how you can become
qualified for a grant and where you can find grants to begin
your business or increase your business.

http://www.theladiesclub2000.com/grantsforwomen.htm

CREDIT CARD NEWS

This website offers up-to-date information on online banks’ applications that you can trust. Whether you have great payment history, or if your score is not so good, you can find the plastic that is right for you. You will find information and help with any issues related to bank deals.

We assembled an outstanding personal finance article library with hundreds of articles by financial experts in the field. Our financial experts give helpful advice on choosing online offers, evaluating different plastic features and building your good score. The articles are conveniently arranged by topic so it's easy to find what you need.

On the other hand, you can take advantage of our online frequently asked questions service. You can ask a question on anything related to financial sphere and our experts will answer your question and will guide you to your best choices.

The E-LOAN process

1. Compare loans
Search hundreds of loans in seconds and find the lowest rate for the product that best meets your needs. If you're not sure which product is right for you, we will recommend one.


2. Apply
Our online application is so simple you can complete it in minutes. Once your application has been submitted, our industry-leading commitment to privacy will ensure that your personal information is completely protected. Your information will be fully encrypted for transmission and then stored securely on our servers.


3. E-LOAN approves loan
Get a decision in minutes and order your appraisal with a credit card to expedite the process. E-LOAN has eliminated the delays that occur when a mortgage broker has to rely on an outside lender for a loan decision. Instead, being licensed as a direct lender allows us to provide you with a fast credit decision. E-LOAN utilizes automated underwriting systems that dramatically reduce your documentation requirements, enabling us to close your loan quickly. Finally, by processing your loan in-house E-LOAN has the control necessary to preserve the confidentiality of your personal information.


4. Search rates and lock your loan online
Through your E-Track account you are able to lock your rate 24-hours-a-day. Afterwards, you will receive an email confirming your rate and price. Plus, once your rate has been confirmed E-LOAN guarantees that your closing costs will not change.


5. E-LOAN completes underwriting
Once you have locked your loan you can relax while E-LOAN completes the final details. E-LOAN will prepare your loan documents and deliver them to your title company. We will then contact you to arrange a signing appointment.


6. E-LOAN funds the loan
Your Loan Consultant will clear up any final conditions and arrange for E-LOAN to disburse your money. E-LOAN guarantees that your loan will close on time or you will receive a $500 rebate.


7. Sign Loan Documents
You can select a signing office that is conveniently located for you. Once you notify your Loan Consultant of your choice they will make all the necessary arrangements directly with that company. The title officer is present at the signing to answer any questions you may have.

Recieve your Statement Online

You can now sign up to receive RBC Royal Bank Visa electronic statements through RBC Online Banking. RBC Royal Bank Visa electronic statements give you safe, secure access to all the information you receive today in your paper statements – but in a more convenient form.

Getting a Small Business Loan

Getting a Small Business Loan
by: Dave Ryan
Are you in need of financial resources in order to start or even maintain your small business? Most of us are. The fist step is to take a look at the vast number of commercial loan sources that offer help in this area such as Chase, Citibank, etc. Also, with the Small Business Administration (SBA), you should be able to arrange a connection with one of these banks. This is one of many organizations that specialize in loans to small businesses.

Contrary to the belief that bankers actually look for reasons to turn down prospective clients in need of a loan, they are in the business to lend money. This means that every time a banker is sitting in front of a potential client, they are hoping to make the deal work just as much, if not more than the client wants it to work.

A bank’s primary role in the small business lending area is funding growth. An example of this would be to finance the expansion of small business with a proven track record. Most banks can offer a wide variety of loan packages designed to finance expansion of an already existing small business.

Below are a few examples bank loan packages :

1. Asset Based Financing. Asset Based Financing is a general term describing a transaction whereby a lender accepts collateral and assets of a company in exchange for a loan. Most asset based loans are collateral against other accounts receivable, inventory, or equipment. Accounts receivable is the most favored of the three because it can be converted into cash quickly. Banks will only advance funds on a percentage of receivable or inventory, typically being around 75% of the receivable and 50% inventory.

2. Line of Credit. A line of credit involves the bank’s setting aside designated funds for the business to draw against for the cash it needs. As the line of credit is used, the credit line is reduced and when payments are made the line is replenished. One major advantage of a line of credit is that no interest is accrued unless the funds are actually used.

3. Floor Planning. Floor Planning is another form of asset based lending in which the borrower’s inventory is used as collateral for the loan. Car dealerships are a prime example of a business that often uses floor planning as their primary financial tool.

About the author:
For more great business, marketing and mind power ideas to develope your business visit the Higher-Profits Blog at www.higher-profits.com

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Don’t Let Passions Rule When Buying A Business

Don’t Let Passions Rule When Buying A Business
by: David E Coffman CPA/ABV, CVA
For many, the American dream of owning a business is in queue right behind owning a home. I was a teenager when I owned my first business. Since then I have bought or started many businesses and helped others do the same. Here are some common mistakes I have witnessed or committed myself.

Paying too much

This results from the combination of all other mistakes. Many new business owners set themselves up for failure by paying too much, which results in higher loan payments, lower operating funds, and reduced borrowing capacity.

Letting your emotions rule

If you have always dreamed of owning a business, it is very easy to get caught up in the strong emotions invoked by seeing those dreams coming true. To counteract your emotions, take your time, do your homework, and enlist the help of objective advisors.

Paying for potential

You should only pay for the business as it stands at the date of purchase, not what it could be in the future. You will have to spend time, effort, and money to develop its potential. The seller chose not to invest these things, so he does not deserve to be paid for them.

Not evaluating yourself

Do you have what it takes to run this business? Try to match your strengths to the important duties you will be required to perform. Running a small business requires the owner to do many things. No one can be good at them all, so make provisions for those areas in which you are the weakest. Some tasks like payroll and bookkeeping can easily be contracted to outside vendors. Possibly your spouse, other family member, or a partner could do things that you cannot or do not want to do.

Not building a team of experts

At a bare minimum, you should enlist the aid of an attorney and a CPA. The attorney can prepare and review documents, help structure the deal, and make you aware of legal and liability issues. The CPA can provide a financial analysis of the business, and advise you about tax and accounting matters. You should consider adding a business valuation professional. His valuation report can be used to determine the reasonableness of the asking price, negotiate a lower price, and provide valuable information about the business, the industry, the competition, and the economic conditions.

Relying on bad information

You should verify all important information about the business. Your CPA can check financial information like receivables, payables, and inventory. Your attorney can review loan documents, leases, and contracts. Your business valuation professional can analyze the competition, the industry, and the economic conditions. Use independent appraisers to value real estate and equipment. Get a credit report on the business through your CPA or banker. You can do some of the investigating yourself to save money, but do not cut too many corners – it may cost you in the long run.

Changing too much, too fast

Once you own the business, you will be tempted to start making wholesale changes from day one. You risk alienating long-time employees and customers. Unless the business is in bad financial condition and needs immediate action, its better to take some time to get to know the business, your employees, and your customers before making changes. This is a perfect time to solicit suggestions from employees and customers.

Buying a business because you like to do what the business does

One reason restaurants have a high failure rate is people buy or start them because they like to cook. Very few restaurant owners spend time cooking. Their time is spent managing staff, ordering supplies, doing paperwork, and handling daily crises. A small business owner must wear many hats – including that of manager.

Not being interested in the business’s product or service

I made the mistake of thinking that because I am a CPA and smart that I could own and operate any business. I bought a business that sold high-performance auto parts to young men who drove jacked-up, four-wheel drive pickup trucks and went to the drag races every weekend. I did not do either and never understood why anyone would. I could not relate to my customers and went out of business in about a year.

Conclusion

Buying a business is a complicated, emotional process. By avoiding these costly mistakes, you can prevent turning your dream into a nightmare.

About the author:
David E. Coffman CPA/ABV, CVA has 30 years of experience working with and operating small businesses. His web site http://biz-buying-selling.comoffers many useful articles, links, and other resources for potential buyers and sellers of small businesses.

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Business Disaster? Won’t Happen to Me

As fast as you can say business disaster, your business can go up in smoke. That’s what happened a while back to Castle Carpet One. Gone were thousands of dollars worth of equipment and carpet, plus two smaller businesses that were housed in the same building. Luckily the owners, Larry and Diane Cox, had plenty of business insurance to cover their physical losses. But they lost their most important business asset - customer records - because of failed back up systems. Rebuilding their customer base will be tough and the long-term revenue impact is hard to measure.

With disasters like hurricanes, tornados, fires, floods and terrorism, to name a few, it’s critical for small companies to have a disaster plan. And for companies with only one location, it’s even more important. One location companies have the potential to lose the entire business if disaster strikes. For a home-based business, it’s even worse. You could lose your home and your business in one swoop. Any small business owner can minimize the damage by simply having proactive strategies in place to deal with an emergency when it happens. What if:

- You arrive at your business to find it vandalized and all of your customer records missing?
- Your most critical employee becomes ill and requires an extended absence?
- Your computer hard drive (or network) crashes?
- You become the primary care giver for a sick family member?
- You become ill and can’t manage your customer commitments?
- Your business becomes inaccessible because of an emergency on your street?

What would you do? Would your business survive? What would you grab if you had to leave your business quickly? After the emergency, how would you communicate with your employees? Customers? How long would it take to get back to business as usual?

Without a disaster plan, you’ll have a harder time getting back to work. Most businesspeople think it will just take two or three days. That’s tough to do if you have no plan for action and little money to move forward. The reality, experts say, is more like several months and at least 25 percent of businesses that experience a disaster never reopen.

But most small business owners just don’t make time for planning. We think it’s “never going to happen to us.” It could. The time to formalize a game plan for an emergency is before it happens. Do it now.

About the author:
Denise O’Berry is a small business consultant located in Florida. For disaster planning tools and tips, visit http://www.myhurricanecenter.com

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Term Life Insurance. What Is It All About?

What is term life insurance? You have an interest in buying term life insurance, that is why you are reading this article, and you want to know how it really works. Right? Well, there are many types of term life insurance and I am going to give you a brief explanation as to how each one works.

Decreasing Term Life Insurance

Decreasing term life insurance is very popular with home owners and mortgage companies. The homeowners want to know that the mortgage is paid off if they should prematurely die, and the mortgage company want to be assured that they are repaid the money loaned to the homeowner. The face amount of these policies decrease in a uniformed manner each year as the balance owed on the mortgage decreases, and the premium remains level. This is very inexpensive life insurance.

Increasing Premium Term Life Insurance

This is initially the cheapest term life insurance you can buy. The death benefit remains level for the duration, however, the premiums increase every year and as a result this may turn out to be the most expensive term life insurance you can buy. If you should purchase this policy it would be wise to convert to a level plan as quickly as possible.

5 Year Level Term Insurance

The face amount of this policy remains level for the entire 5 year period and so does the premium. Upon death the face amount is paid either in one lump sum or in the form of an income. If you have a short term need for life insurance, like covering a bank loan, then this may be the plan for you.

10 Year Term Life Insurance

Like the 5 year term life insurance policy, the ten year term life policy can be used to cover a bank loan, but it can do considerably more. It can be used for family protection and a myriad of other needs. The face amount of the policy remains level for the duration and so does the premium. Some companies allow you to continue the policy after 10 years with an increase in premium.

20 Year Term Life Insurance

The 20 year term life insurance policy is probably the most popular of term life policies. The death benefit remains level for the duration and in some cases so does the premium. With some companies, however, the premiums increase after the first 10 years to reflect the cost of the additional risk to which the insurance company is exposed as the insured gets older. All in all, the 20 tear term life insurance policy is fairly inexpensive and does the job it is intended to do.

Unlike whole life insurance, universal life insurance or variable life insurance, term life insurance does not have cash values or earn dividends. There is a fairly new type of term life insurance policy, however, called a return of premium policy which returns all your premiums at the end of the term period, if you do not die. The premiums are so high it may not be worth your while to buy this type of term policy.

What is mesothelioma

Malignant mesothelioma is a disease that strikes approximately 3,000 U.S. citizens each year. In this rare form of cancer, malignant (cancer) cells are found in the sac lining the chest, the lining of the abdominal cavity, or the lining around the heart.

Budget Insurence

A recent survey conducted by insuresupermarket found Budget Insurence* Services to be the cheapest for UK Car Insurence* (moneysupermarket, July 2004), other companies in this poll included – Tesco and Direct Line.

Solutions to the Student Loan Shortfall

With lenders leaving the loan market, the government has stepped up to guarantee the money will be there
Students who plan to borrow for college over the next few months can rest easy. The Department of Education will ensure the availability of federal student loans by buying them back from private lenders, if necessary, or by freeing up the money that lenders need to make the loans.

Over the past few months, turmoil in the financial markets has left private lenders scrambling to finance student loans. At the same time, the College Cost Reduction and Access Act, passed last year, has made those loans less profitable. Faced with that double whammy, many lenders dropped out of the federal loan business altogether, and industry behemoth Sallie Mae, which last year accounted for $17.6 billion in federal loan volume, indicated that it might not be able to pick up the slack.

Now, families who borrow through private lenders -- as most do -- can be confident that the money will be there before their children head back to school this fall. Students at schools that participate in the Federal Direct Loan Program have avoided this drama: They borrow straight from the federal government, which has lately doubled its capacity to make the loans.

Federal loans, known as Staffords for students and PLUS loans for parents, are the best deals around when it comes to borrowing for college. They offer the security of a fixed interest rate (6.8% or less for Staffords and 8.5% or less for PLUS loans) and come with flexible repayment terms. For students who qualify for subsidized Staffords, the feds pick up the interest until repayment, six months after graduation; interest on unsubsidized Staffords starts accruing immediately.

As a longer-term fix to cope with lenders leaving the loan market, the Department of Education has dusted off its never-used "lender of last resort" program, which designates state agencies as lenders if private lenders become scarce. The department has asked agencies to brush up on procedures for such a step and will advance money to the agencies, if necessary, to make sure no student approved for funding goes without it.

Sallie Mae has also reaffirmed its commitment to the federal student loan program. "We needed a solution to help us sustain an explosion in demand," says Conwey Casillas of Sallie Mae. At least one lender that had stopped offering student loans, NorthStar Guarantee, has resumed taking applications. More lenders, mostly state agencies, will likely follow, says Mark Kantrowitz, of Finaid.org
Private Loans: Still Tough
The news isn't as reassuring for private loans. Unlike Staffords, which are available to all students who apply for financial aid, private student loans require that applicants meet underwriting standards. A year ago, when lenders were flush, even students with poor credit -- say, a FICO score of 620 -- qualified for the loans. This year, borrowers need a score of at least 650 or a credit-worthy cosigner to get the deals.

To help students with poor or no credit fill the gap between federal loans and college costs, lawmakers recently raised the maximum on unsubsidized Staffords by $2,000 annually. Students can now borrow up to $5,500 for their freshman year, $6,500 for their sophomore year, and $7,500 each for junior and senior years.

Not only do the higher limits get students closer to meeting their tuition needs, but also they allow students to stay within the federal loan program with its fixed rates and attractive terms -- "a definite win," says Justin Draeger of the National Association of Student Aid Administrators.

Credit Card Extreme Rewards

As the quantity and variety of credit card offers seem to expand like options on a Chinese food take-out menu, card issuers keep searching for new ways to capture and retain customers. One approach has been to appeal to consumers interested in benefits other than typical financial inducements such as low interest rates, no annual fees and travel rewards. By offering rewards that benefit the specific passions and interests of consumer niches, issuers have found that they can appeal to a particularly loyal base of customers

Whether you are an extremely generous or loyal person, or someone in need of extreme pampering, there is almost certainly a credit card tailored for you. And if you are a partisan of long-term relationships, there is a credit card that claims it can make you a millionaire!

Extreme Generosity

Yes, Virginia, you really can do good things with your credit card beyond feeding your own selfish needs and desires. Some credit cards offer a convenient way to support worthy charitable and socially conscious programs

Best Friends Animal Sanctuary Platinum Visa Card

This card benefits the Best Friends Animal Society, which operates an animal sanctuary in Utah and promotes the No More Homeless Pets campaign.
Basic reward:
0.55 percent of purchases charged to the card are donated directly to the Best Friends Animal Society.

Bank of America Brighter Planet Visa Credit Card

Want to use your plastic to boost renewable energy projects? This card benefits Brighter Planet, which helps combat global warming and fund community-based renewable energy projects. Current projects include a wind turbine project supplying electricity to a rural Colorado school district and a methane abatement project at a Pennsylvania dairy farm.
Basic rewards:
Earn one point for each dollar spent.
Points automatically redeemed each month by Bank of America to purchase carbon offsets.
Through 2008, Bank of America will make matching contributions. At the current price of carbon offsets, this amounts to about $18 total redemption for each $1,000 charged (or 1.8 percent).

payment protection

More properties were repossessed in 2006 than in any year since 2000. Why? A press release from British Insurance tells us: it is all down to “higher interest rates and first time buyers taking greater financial risks often borrowing in excess of five times their salary and opting for 25 year plus prepayment policies.” So what does the insurance company think we should do about these “disturbing” numbers? Buy fewer houses perhaps, or at least not take out such huge mortgages that we are almost guaranteed to get into trouble. Of course not. It wants us to carry on borrowing just as much money and taking just as much risk but to buy more expensive insurance from it at the sam e time. Never, says the firm’s spokesman Simon Burgess “has the need for Mortgage Payment Protection Insurance been so apparent.” Take it out and you’ll have a vital “safety net” if things go wrong.Why banks love payment protection insurance?Well, maybe, maybe not. Payment protection insurance (PPI) is a favourite of high street bank financial advisers and insurance salesmen across the country. Why? Simple. It is overpriced and hard to claim on, so they make an absolute fortune from selling it to you. Paymentcare estimated last year that of the £4 billion spent by borrowers on PPI every year a massive £2.5 billion is stripped out immediately in commission payments – they know they aren’t going to need it to pay claims.The idea of PPI and MPPI - one of which you will be offered it every time you take out a mortgage, a credit card or a loan of any kind – is that if your circumstances change such that you are unable to repay your debt, the insurance will do it for you. The sales pitch will be that buying it is the sensible thing to do, that if you are made redundant, get very ill or have a serious accident you will need it.

Economic Survey Report 2007-08

The Economic Survey 2007-08, released, paints a dismal picture about the state of the national economy where Pakistan has missed all its envisaged macroeconomic targets during the outgoing fiscal year owing to domestic and external shocks.Conceding that the country’s economy is in serious difficult situation, the survey states, the country’s GDP growth fell to 5.8 per cent against target of 7.2 per cent, fiscal deficit surged in the range 7 per cent owing to higher POL and food prices against target of 4 per cent, growing vulnerabilities in the wake of hike in current account deficit touching to 6.9 per cent of the GDP as well as ballooning inflationary pressures to 10.3 per cent against target of 6.5 per cent, posing serious challenges for the economic managers.The public debt is rising on account of twin deficits — fiscal and current account — and likely to rise up to 56 per cent of the GDP for 2007-08 against 53 per cent for the previous year and witnessing reversal in the trend by moving from bad to worst.“Fiscal year 2007-08 witnessed violation of various aspects of the Fiscal Responsibility and Debt Limitation Act 2005,” the Economic Survey 2007-08 admits. The food inflation is estimated at 15 per cent for the outgoing fiscal year, clearly indicating that the higher prices of food fleecing the poor voiceless consumers.The Economic Survey 2007-08 was launched by Finance Minister Syed Naveed Qamar here at P Block during a press conference on Tuesday. Flanked by Special Adviser to the Prime Minister on Finance Hina Rabbani Khar, author of the Economic Survey Dr Ashfaq Hassan Khan and others, the finance minister announced that the PPP government would launch another poverty survey along with upcoming census to get more reliable data and analysis on this issue.The external debt rose to $45.9 billion in first nine months of the current fiscal against $40 billion last year, registering an increase by $5.4 billion. The foreign exchange reserves dwindled to $12.3 billion by the end of April 2008, significantly lower than June 2007 level of $15.6 billion.The rupee also depreciated against the US dollar by 6.4 per cent during the first 10 months of the fiscal 2007-08 compared to the previous financial year. Dwelling upon the reasons for higher fiscal deficit, the Economic Survey 2007-08 states the oil subsidy is projected to rise to Rs 175 billion — surpassing the target level by Rs 160 billion. Similarly, the subsidy on electricity tariff stands at Rs 113 billion against the budgetary allocation of Rs 52.9 billion.On positive side of the economy, the per capita income rose to $1,085 and it was claimed that the poverty level has come down from 23.9 per cent in 2004-05 to 22.3 per cent by 2005-06. Through the Economic Survey, the PPP government has endorsed the Shaukat Aziz regimeís claim of reducing the poverty whereas the growth remained at an average rate of 7 per cent during the last five years.But the Economic Survey also admitted that the inequality has been rising since 2001 where gap between the rich and the poor is widening. The country’s exports recorded a growth by 10.2 per cent and increased to $15.3 billion while imports went up to $32.1 billion in July-April period, registering a trade deficit to the tune of $17 billion.Against the backdrop of extreme political instability and heightened security concern, Pakistan succeeded in attracting $3.5 billion foreign direct investment (FDI) in the first 10 months of the current fiscal year - almost $700 million less than last year.Total investment declined to 21.6 per cent of the GDP in the fiscal year 2007-08 against 22.9 per cent for 2006-07 thus the contribution of the investment to the current year’s GDP growth declined from 45 per cent to almost 12 per cent for the outgoing year. Fixed investment also declined to 20 per cent of GDP from 21.3 per cent. The public sector investment remained at last year level of 5.7 per cent, private sector investment declined to 14.2 per cent for 2007-08.The Economic Survey 2007-08 states the current fiscal year has been a difficult year for Pakistan’s economy.“Several political and economic events, both on domestic and external front, occurred unexpectedly. These events include: disturbed political conditions; an unstable law and order situation; supply shocks; soaring oil, food and other commodity prices; softening of external demand; and turmoil in the international financial market.”The most important aspect, however, has been the non-responsive stance on account of political expediency in addressing domestic and external challenges during most part of the fiscal year, further accentuating macroeconomic difficulties” the Economic Survey 2007-08 added.“We will also reconstitute the NFC body and its maiden session is expected to meet in July 2008,” the finance minister said and added that two provinces have so far nominated its members while the centre is waiting nomination from the remaining two federating units.He said the GDP growth of 5.8 per cent was mainly led by services and consumption as the performance of agriculture and manufacturing sector was unable to achieve its envisaged targets.The agriculture sector grew by 1.5 per cent in the outgoing fiscal against target of 4.8 per cent for 2007-08. Major crops witnessed negative growth of 3 per cent and livestock rescued the agriculture growth by achieving 3.8 per cent in 2007-08.Real private consumption expenditure grew by 8.5 per cent in 2007-08 against 4.8 per cent last year. The contribution of net exports is negative 21 per cent. It is therefore safe to suggest that this year’s growth is service/consumption led growth.National Savings at 13.9 per cent of the GDP has financed 65 percent fixed investment in 2007-08 against 77.7 per cent last year. National Savings as percentage of GDP stood at 13.9 percent in 2007-08 — far lower than last year’s level of 17.8 per cent. The decline in National Savings rate simply indicates that the reliance on foreign savings increase to finance domestic debt.The overall fiscal deficit is estimated at Rs 737.8 billion or 7 per cent of the GDP for 2007-08 against the target of Rs 399 billion or 4 per cent of the GDP. Some shortfall in revenues and massive slippages in expenditure side on account of interest payments and subsidies are responsible for the rise in fiscal deficit. An adjustment of Rs 100 billion was made in development expenditures in the outgoing fiscal year.

Homeowner Loans and Secured Loans

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Car Loans

Thinking about buying a new car? Our selection of specialist car loans can help you fund all or part of your new vehicle purchase. Compare rates and repayments online.

Payday Loans

Can’t wait till payday? Our selection of payday loans could bridge the gap until your next pay cheque arrives. Find out more about how to make an application for short-term finance then compare fees and loan periods online.

Debt Consolidation

If you've got existing credit and you're finding it hard to keep track of the repayments or you just want to reduce the amount you pay each month then use our debt consolidation tool to see if you can benefit from one simple monthly repayment.

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