How Healthy is Your Health Club?

With more and more insurance companies offering discounts on health and fitness club memberships, now may be a good time to join a health club, get into shape, and improve your overall health. But if your health club cuts corners when it comes to safety, sanitation, and staff training, you may actually be jeopardizing your health by working out there. Here are some signs that your club puts the health and safety of its members first.

Club members are instructed on the proper use of equipment and facilities

When you join a health club, a member of the club's staff should ask you to fill out a health history questionnaire. If you have a serious health problem (e.g. a heart condition or a bad back), the club should require that you obtain medical clearance before beginning an exercise program. Then, you should be invited to a new member orientation session (usually a one-on-one session) in which you learn club rules and find out how to properly use the exercise equipment. Staff members should work with you to design an exercise program that meets your needs, taking into consideration any health problems or physical limitations you might have.

Staff members should test your fitness when you start an exercise program, then check on you periodically thereafter. Even long after you've joined, they should be readily available to answer questions and teach you proper exercise techniques. This may be possible only if there is an adequate instructor/member ratio. If only a few staff members are on duty, they may not be able to give you the personal attention you need to exercise safely.

Staff members are qualified and well trained

All staff members should be knowledgeable about health and fitness issues, and most should be trained in CPR and first aid. In addition, exercise instructors should be certified by a nationally or internationally recognized organization such as the Aerobics and Fitness Association of America or the American College of Sports Medicine.

Equipment and facilities are clean and safe to use

Check out the condition of the equipment and the cleanliness of the facility. Although health clubs must be licensed by state and/or local governments to do business, they may not be closely regulated. However, they may be certified by a national organization (such as the International Health, Racquet and Sports Club Association) that requires members to maintain clean, safe facilities and adhere to a code of ethics.

Regulated or not, your health club should be well maintained. Dirty locker rooms and broken equipment can sometimes signal that the club is in financial trouble, especially if the condition of the club has recently taken a turn for the worse. Look for the following signs that your health club is adequately maintained:

• The club should have routine sanitation procedures--find out what they are
• Members should be instructed to clean off machines after use (look for adequate paper towels and spray bottles of disinfectant)
• The facility should be spacious enough to accommodate members even during peak periods--find out if the club limits membership to prevent crowding
• Exercise equipment should be relatively new, not outdated
• All equipment should be clean and in good repair--worn or torn equipment may be a safety hazard
• Instructions for use should be attached to each machine
• Mats and flooring should be clean and resilient enough to protect against injury
• Showers and locker rooms should look and smell clean (no mold or mildew)
• The pool and hot tub should be adequately sanitized--signs of inadequate sanitation include pool water that burns your eyes or foam in the hot tub
• Rules of use should be posted in the pool/hot tub area (e.g. shower before entering the pool, limit use of the hot tub to 15 minutes)
• First aid kits should be well stocked and readily accessible

Security in and around the club is adequate

Health clubs often post signs warning members not to leave valuables in their lockers. Because lockers are notoriously easy to jimmy open, petty thieves often target them. This doesn't necessarily mean that the health club has lax security, but it does mean that you should find out if the health club is going the extra mile to protect you and your possessions. Determine whether the club you belong to has:

• Security measures in place to ensure that only members or their guests can enter or leave the building (e.g. membership cards, surveillance cameras, gates)
• Well-lit parking areas
• Security guards if the area is especially dangerous
• A well-attended child-care facility if the health club offers it

What if you find problems?

If you feel that your health club is not as clean or safe as it should be, talk to the club's director. If your concerns aren't resolved or if serious health violations exist, contact the local or state authority responsible for monitoring business and/or sanitary practices in your area (e.g. the Attorney General's office, Health Department).

Protect Yourself by Conducting a Home Inventory

When you live in the Snow Belt, the crisp air and brilliant colors of fall remind you that a snowy winter is just a breath away. And in the winter, bad weather conditions--or perhaps an untended fireplace--may wreak havoc on your property. If your household possessions are damaged or destroyed, you'll have a hard time recalling the price (and description) of every item unless you have a thorough home inventory on hand.

What is a home inventory?

A home inventory is a detailed list of the personal property located in your home. You should also include property that you have stored elsewhere, perhaps in a storage area or a garage on the premises.

Your list should include your furniture, jewelry, artwork, antiques, appliances, kitchen contents, clothes, carpets, drapes, computer equipment, television sets, CD players (and other audio or audiovisual equipment), musical instruments, clocks, mirrors, linens, lawn mowers, snow equipment, tools, sports equipment, and any other item of value.

Why do I need an inventory?

An inventory is especially important for insurance purposes. When you make an insurance claim for damaged, lost, or stolen property, your renters policy will require you to show the quantity, description, actual cash value (i.e., depreciated value), and amount of loss associated with each item. You'll also be asked to provide copies of bills, receipts, or other documentation to support your figures. If you omit some items or fail to include an adequate description of others, you may receive less than full compensation for your losses. Relying solely on your memory can be an expensive mistake. As an exercise, try to name every item in your kitchen junk drawer, and then imagine having to do that for the whole house!

A good time to conduct an inventory is when you're moving into a new apartment, condo, or other rental property. That way, if something is lost or damaged, you'll be prepared to file a claim against the moving insurance that you've purchased (or the insurance that the mover has provided).

Conducting the home inventory

Going room by room is perhaps the best way to conduct your home inventory. Make a list of each item in the room, opening drawers, closets, and storage boxes. Be as descriptive as possible. For example, don't simply note that a bed exists--describe the headboard, footboard, mattress, and bedding, writing down colors and dimensions. Don't forget the attic, hall closets, basement, and outbuildings. If possible, try to include the following information for each item:

• Item description (and quantity)
• Manufacturer or brand name
• Model number or serial number
• Description of where (or how) the item was obtained
• Date of purchase or age of item
• Receipt or other proof of purchase, showing cost
• Current value
• Replacement cost
• Photocopies of any appraisals

A picture is worth a thousand words

It often helps to photograph or videotape your possessions, especially if the items are hard to adequately describe on paper or if you don't have a receipt. If you use a camera, label each photo with information about the item shown. If you use a camcorder, provide a commentary about each item in view. Date-stamp your video or take a shot of the date on that day's newspaper.

Safeguard and update your inventory

An inventory--whether it takes the form of a written list, a series of photographs, or a videocassette--will do you no good if it's lost in a fire or has otherwise vanished. Although you may want to have a copy of your inventory at home, you should also store a copy in a secure location, such as a safe-deposit box or your office at work. Include copies of your receipts and other supporting documentation. Finally, you should update your inventory at least annually to make sure that it accurately reflects your home's contents.

Top 10 Ways to Cut Your Medical Bills

With health-care costs on the rise, you may be looking for ways to lower your medical expenses. Here are 10 ideas:


1. Practice prevention
2. Shop around for health insurance
3. Cut the cost of prescription drugs
4. Check your medical bills 5. Join your spouse's health plan
6. Keep track of your medical expenses
7. Negotiate a discount with your health-care provider
8. Contribute to a flexible spending account
9. Take advantage of free health screenings
10. Get to know your health insurance

Practice prevention

As basic as it sounds, one of the most effective ways to lower your medical expenses over time is to maintain a healthy lifestyle. For example, you can:

• Take advantage of wellness programs
• Maintain a healthy weight
• Exercise regularly
• Kick unhealthy habits (e.g. smoking)
• Have regular checkups

Shop around for health insurance

If you don't have employer-sponsored health insurance, you may be looking to obtain coverage on your own. To get good coverage at an affordable price, shop around. Because premiums vary widely, you'll probably save money if you get quotes from several companies. Evaluate each plan's coverage and features, taking into account exclusions, limitations, and the freedom to choose health-care providers, among other things. Also find out how much you'll end up paying out of pocket in the form of co-payments, coinsurance, and deductibles, because even relatively small amounts of money can really add up if you make frequent visits to your doctor.

Cut the cost of prescription drugs

Prescription costs can eat up a large portion of your budget if you take prescription drugs regularly. Fortunately, it's not hard to find ways to save money. For example, try ordering your prescriptions through the mail, using a traditional or online pharmacy. If you belong to a prescription drug plan (e.g. through your health insurance), you may be able to get a three-month supply of your prescription drug through the mail for the same price you would pay for a one-month supply at your neighborhood pharmacy. You can also ask your pharmacist or doctor to recommend a less-expensive generic drug whenever possible.

Check your medical bills

Medical bills are often confusing to read. However, taking a few minutes to go over the charges may save you money in the long run. Check to make sure that the bill accurately reflects the procedures you have undergone and takes into account any applicable insurance coverage you may have. Some errors, such as wrong computer codes, are common, and you may be billed for health care you never received. Contact the appropriate billing office if you think you've found a mistake. If you've received an explanation of benefits from your insurance company that you believe is wrong, ask the company to review your claim.

Join your spouse's health plan

Many married couples maintain separate health insurance coverage even though it may not be cost effective to do so. Examine both your coverage and your spouse's coverage to see if it makes sense for either of you to join the other's plan. Keep in mind that most plans allow you to add a spouse to your plan within a certain time period after you get married (e.g. 30 days). Otherwise, you may have to wait for the plans' annual open enrollment period.

Keep track of your medical expenses

Come tax time, you may be able to deduct certain medical expenses if you itemize, and your total medical expenses exceed 7.5 percent of your adjusted gross income. Allowable medical expenses include everything from health-care services to medical aids (e.g. eyeglasses, hearing aids). Keep track of these expenses if there's a chance you'll be able to deduct them on your income tax return.

Negotiate a discount with your health-care provider

Many people don't realize that you can sometimes negotiate to lower your medical bills. While it may not always work, it doesn't hurt to ask your doctor, hospital, or pharmacy if they're willing to come down in price. Before you begin to negotiate, do a little research to find out what other health-care providers in your area are charging. You can also ask your health-care provider if they'll lower their price if you pay in cash up front.

Contribute to a flexible spending account

Your employer may offer a flexible spending plan that allows you to put pretax dollars in an account. You are then reimbursed for your out-of-pocket medical expenses, such as prescription drugs, dental care, and co-payments. Because flexible spending contributions are taken out of your pay before federal and state taxes are calculated, you get to use pretax dollars to pay your medical bills.

Take advantage of free health screenings

If your health insurance doesn't provide adequate coverage in some areas, or if you don't have any health insurance coverage at all, you may want to look into free health screenings. Local clinics and hospitals often provide a variety of screenings, such as blood pressure, cholesterol, and mammograms.

Get to know your health insurance

Your health insurance may cover more than you think. Nowadays, insurance companies often provide benefits designed to help you stay safe and healthy. For example, you may receive discounts on vitamins, alternative medicines, health club memberships, or bike helmets. You may also be surprised at the range of coverage your health plan offers. For instance, it may cover dental care for young children, chiropractic care, and acupuncture. Read your plan membership materials to find out what products and services are available through your health plan before you pay for them on your own.

Tips to Make Moving Easier

The excitement of finding a new home is often followed by a feeling of dread, anticipating the hard work that is needed to actually move into the new space. You have to pack up everything you own, move it across the town, county, state or even country, and set it all up again.

And, of course, if you're moving to a new state, you'll need to change your car insurance. We can help with that part. As for the rest, here are some useful tips and suggestions that might make moving easier!

Professional Movers - some thoughts

Are you going to move yourself (with the help of friends and family), or are you going to use a professional moving company? It’s a big decision, and it might be a moot point if you have a lot of belongings and furniture to move, or if it’s a long-distance move.

Research various moving companies, and talk to people you know - get opinions. Make sure that the company has a good reputation, and try to negotiate a fixed, set fee for the entire move. Such a ‘binding estimate’ will often require the company to visit both your current and new home in order to come up with a realistic price.

Many companies offer a range of services, all the way from packing everything, moving it and unpacking it again to more basic options such as just loading, just unloading or only driving the truck. You can even hire a moving company to move a single item, such as a piano or a particularly unwieldy piece of furniture. Expect extra charges if your move crosses county or state lines, and if multiple flights of stairs are involved.

Many moving companies offer insurance on your belongings, with different coverage options. Most will require an extensive home inventory, outlining particularly expensive or valuable belongings. Putting together an inventory like is always a good idea anyway, and moving is a good opportunity to do so.

Prepare

Start collecting package boxes as early as you can. It's better to have more than you need. Talk to local stores, and ask them to keep some boxes aside for you. The best kinds of boxes to use are ones that once transported fragile pre-packaged items, such as glass bottles. Make sure that all the boxes are clean and sturdy - you can reinforce them with duct or packing tape.

Talk to your auto insurance company - check to see if you'll have coverage if you're in a new state, and give them your new address. This is a good time to compare your current rates against those offered by other companies. Changing locations could affect your rates. This is equally true of your home or renters insurance.

Each packed box should get a number, written clearly on each side of the box, along with a note saying which room it should end up in, and a rough indication of what's inside it. Keep a list, and check off each box as you deliver it to its destination room.

Clothing can be transported in leaf or trash bags. Just make sure they are clearly labeled so they don’t get tossed! Use clear bags if you can, or white ones, to differentiate between trash and clothes you want to keep. You can also transport clothing in suitcases, which is a great way to use all available containers.

Typically, you'll need to update the following utilities - electric, gas, water, newspapers & magazines, telephone and cable companies. Make sure to have this all ready to go before you move. You can provide the date of your move to the companies, and they should be ready for you.

Let your bank and credit card companies know about your move as far in advance as possible - they will switch your mailing address on day that you specify. You’ll need to get new checks with your new address, too.

Don’t forget to tell your employer that you’re moving. Update your address and contact details with your human resources department as soon as possible. This is especially important for pay and 401(k) information. If you have investments or 401(k)’s from other companies, contact these financial organizations too.

Get pre-printed address labels for your new house as soon as you know the address, and use them liberally - on boxes, notes, anything of importance. Mail a few to friends and family to remind them of your new address, and make sure to give them your new telephone number.

Before you even start packing, measure your furniture and check the doorways and tight corners at your new house. You might find that some items will have to be dismantled to get them into your new home - or even to get them out of your old one!

If you have children, bear in mind that this is probably both an exciting and scary experience for them too. They will be giving up friends and familiar places and things for the unknown, and however intimidating that might be for you, it’s probably going to be worse for your children. Keep them involved during the preparations, and on the day of the move. Give them something to do that keeps them occupied, yet out of harms way. Have plenty of distractions for them, and plenty of patience too.

Day of the move

Make sure the new house is child and pet-proofed before you even start moving boxes in. When dealing with young children, make sure that any safety gates for stairs or outlet protectors are in place before you bring your child into the new house.

You should transport anything irreplaceable or expensive in your car, if you can. This could include fragile items, or personal records, your computer, television, etc. Check that items are secured, and that your field of vision won't be impaired when driving.

Remember that your tire pressure should be checked ahead of time, if you intend to load your car up with more weight than usual.

If you are driving a rental van, remember that it might handle differently from what you're used to. Give yourself more room to maneuver turns and a few extra seconds of braking time. And remember that the truck may well be higher than usual, so watch your overhead clearance.

Move on a weekday - importance services such as banks, government offices and utility companies will be open, just in case you need them. Check that the utilities you need will be in service at your new house if you need them straightaway.

Packing can be just as traumatic for your pet as the move itself. Keep pets out of the boxes and the packing materials. Get a blanket or piece of clothing with your scent on it, and keep it with the pet in the weeks leading up to the move. It may offer your pet some comfort in the new house.

Pack a special box with some kitchen and bathroom items that you might need straight away at your new house. A change of clothes, and some clean sheets might also be good things to put in this box. Keep this in your car, or make sure it's easy to get to once your long day is over.

Don’t pack flammable or heat-sensitive items that could sit for a while in unpredictable temperatures. If you’re not sure, pack them into the backseat of your car, and don’t leave them sitting around for any length of time. Certain items (such as medications) might need to be packed in a cooler, while others might need to be kept warm in the winter. Carefully consider how you’ll need to treat such items during your move.

Unpacking

Make sure everything arrived! Use your checklist and make sure each box is accounted for, and is in the right room. Unpack what you need for the rest of the day, and don’t feel under pressure to unpack everything right away. Rest, and enjoy your new home!

Be Proactive…

Environmental Concerns
A well maintained car not only saves you money on repairs, it can help the environment. Properly tuned and looked-after, a vehicle will use less gas, less oil and less energy, while producing less pollution than a badly maintained vehicle.


A Class Act
Many community colleges run classes on basic car maintenance. Even if you never intend to service your car yourself, it can still be helpful to know more about your car. Remember, before you try any of these tips, make sure to consult your owner’s manual, and if you have any doubts, consult a professional.

Things to keep an eye on…

Air Filter
Air filters steadily build up with dirt and dust, making sure that it doesn’t get into your engine. Eventually, your air filter will get blocked (if it does, your ‘Check Engine’ light may come on), reducing performance. If the filter is only slightly dirty (it will appear slightly discolored), you can give it a quick clean by tapping it, bottom side down, against a hard surface.

Battery
Check your connections to make sure they are not corroded, and keep the casing of the battery clean. Cracks or bulges indicate that you might need to replace the battery. If you find corrosion on the terminals, you can try to clean it carefully with a mixture of baking soda and water, and a stiff (non-metal bristled) brush. Rinse the terminals with clean water, and make sure you’re catching the run off in a tray.

Windshield Wipers
Properly working wiper blades are an essential part of safe driving. Make sure they are clean and intact. You can clean the blades using a mild detergent and a paper towel. If the blades look worn, they are fairly easy to replace. You can either replace the rubber blade or the entire arm.

Fluids
Before you check fluid levels, make sure the car is on a level surface. Checking the levels of your vehicles various fluids can be a great way of ensuring your vehicle’s health. Make sure that the caps are clean and free of dirt and debris before opening them to check levels – you don’t want anything getting into the fluids. Windshield washing fluid is easy to replace, and you should always carry spare washer fluid in your trunk. Don’t fill the reservoir all the way during cold weather, just in case it freezes. Other fluids, such as engine coolant, brake fluid and power steering fluid, should be checked and replaced by a professional.

Oil change
Oil protects and lubricates the moving parts of your engine. It breaks down over time, because of the heat and pressure involved in protecting the engine, and because it picks up dirt, dust and other particles. Depending upon driving conditions, oil and oil filters should be changed every 3,000 – 5,000 miles. City driving (with lots of stops and starts), driving in dusty areas, very hot or very cold climates, or regularly carrying heavy loads, wears your oil out faster than highway driving in temperate areas.

Tires
Make sure your tires are correctly inflated. Not only will this help maintain the life of your tires, it can keep your gas mileage up, and is safer too. Keep an eye on your tread, and make sure you have the correct amount. Don’t let your tires wear down too far, as this can be dangerous. In most states, 2/32 of an inch is usually the legal limit, but you should try to replace your tires before then. You may be familiar with the ‘penny’ method of checking your tread depth (if you can see all of Lincoln’s head, replace your tires) but a tire tread gauge (available from any auto parts store) is more accurate.

Tire rotation
Rotating your tires helps prolong their life. Your mechanic will have the equipment to rotate your tires easily and quickly. You can do this yourself if you have the time and equipment, though a professional mechanic will be able to check alignment and rebalance your wheels if necessary.

Belts
Most cars have a ‘serpentine belt’ that drives the various pumps and engine accessories, along with a ‘timing belt’ that runs the engine itself. These belts will wear out eventually, or will get loose over time. You can check for wear and tear on your belts, but it’s a good idea to have a professional handle the actual replacement. If you see deep cracks in the belts, that’s a sign that they need changed. They are inexpensive to replace, but a damaged or broken belt could strand you on the side of the road and damage your engine.

Brakes
Your brakes are essential to your safety on the road (and the safety of other drivers), so we recommend that you always get them changed professionally. If you notice screeching or grinding noises when you brake, or feel your steering wheel ‘wobble’ when braking, take your car in to have the brakes checked as soon as possible. Those are just two of the warning signs that mean you may need new brakes.

Car Maintenance Tips

We invest a great deal of money into our vehicles, and apart from a house, a car might be the most expensive item that we will buy.
Keeping your vehicle running smoothly can save you money in repairs and maintenance, and will be safer for you and your family.
We recommend that you always use a certified and qualified mechanic or technician to service your car – this ensures the best possible results, and can help maintain your vehicle’s warranty. However, there are some things you can do to keep your car running smoothly.

Safety Basics

• Please refer to your owner’s manual before you start any maintenance, as it will contain vital information specific to your vehicle.
• Have the right tools for the job. It can be dangerous for both you and your vehicle if you try to use the wrong tools.
• Know how to handle chemicals. Oil and gasoline are dangerous materials, and should never touch your skin.
• If you’re cleaning any part of your engine at home, keep a drainage pan under the engine to capture any residue and follow local ordinances regarding disposal of engine oil and related liquids.
• Parking brake should be on, and the gearshift should be in park.
• Do not work on a hot engine!
• If you’re not sure about any aspect of a repair or maintenance procedure, please consult a professional mechanic or technician.

8 Things You Should Know About Auto Insurance

Dealing with the ins and outs of auto insurance can be as tricky and confusing as trying to untie the Gordian knot. Although we can’t help you with the knotty Gordian problem, the following recommendations could help you figure out some of the more complicated points of auto insurance.

1) Determine appropriate coverage.
Help control the price you pay, just ask American Insurance Association executive Dave Snyder. For example, Snyder notes that half of your auto insurance bill covers liability and “that has to do with how you are going to use the vehicle, such as for commuting to work and your driving record. If you’ve got a clean driving record, you figure to pay less for insurance than you would if you had a speeding ticket on your record. You can control the other half of your premium which covers damage or loss to your vehicle, comprehensive and collision coverage.”

2) Shop around for insurance.
“In most states,” Snyder reports, “there are hundreds of insurers competing for business, so it’s possible to save hundreds of dollars by obtaining quotes from different auto insurance providers.” Picking up on Snyder’s theme is his AIA colleague, Nicole Mahrt. Mahrt urges you to work with your insurance provider to get more than one quote. “It pays you to shop around, especially if you feel you’ve been paying too much.”

3) Look for insurance discounts.
“Many insurers will give you a discount if you buy two or more types of insurance from them, for example auto and home insurance,” confirms John Marchioni, senior vice president of Personal Lines for Selective Insurance, in Branchville, N.J. More cost-saving suggestions from Marchioni: “Ask about discounts for air bags, anti-lock brakes, daytime running lights and anti-theft devices.”

4) Consider taking a higher deductible.
“You could lower your insurance bill by increasing your deductible,” Mahrt says. “But just make sure you can pay the higher deductible if you file a claim.”

5) Look into “stacking” coverages if you file an insurance claim.
Insurance trade group officer Daniel Kummer explains that stacking uninsured/underinsured motorist coverages means “you can collect from more than one of your auto insurance policies. Most states prohibit this practice, but there are about 19 states that either allow stacking or don't address the issue either through legislation or litigation,” according to Kummer, director of personal insurance for the Property Casualty Insurers Association of America. “Be sure to check your auto insurance contract to see if it's allowed. “Be advised that you’ll likely pay a higher insurance premium if you have stacked coverage. “It could be 10% to 30% more depending on the litigious nature of the state in which you reside,” says Kummer.

6) Check with your insurance provider BEFORE buying a car.
“Your premium is based in part on the car’s sticker price, the cost to repair it, its safety record and the likelihood of theft,” answers Selective’s John Marchioni. Remember to avoid shopping by price alone. “You want an agent and a company that answer your questions and handle claims fairly and efficiently,” emphasizes Marchioni, senior vice president of Personal Lines for Selective Insurance.

7) Notify your auto insurance company as soon as you change companies.
“Be sure to cancel your old policy,” suggests PCI’s Dan Kummer. “Do it the same day, but don’t cancel your old policy until you’ve lined up a new contract. That’s important because some states like New York will fine you for the number of days you go without insurance.” One last thought from Kummer on the subject: “Most auto insurers specify in your contract that you can terminate your policy any time you want by informing your company in writing about the date you wish that coverage be terminated or you can do that over the phone.

8) Pick the insurance payment option that best fits your budget.
“Generally, most companies will give you the ability to pay over time, but that comes at a price,” says Kummer. “Your payment could increase a few dollars each time you pay by installment. Insurers can accept payments monthly, quarterly, or every six months, what ever is most convenient for you. Remember, though, that the more you break down your payments, the more the cost adds up.”

The Consequences of Not Having Auto Insurance

When young adults graduate college they have aspirations of starting their first "real world" job, getting their own place and buying a brand new car - one that does not need a screwdriver to start. However, college students are also graduating with much more than just a college degree and a dream, they are graduating with a substantial amount of debt. In fact, many students graduate with an average of $3,262 in credit card debt - 10 percent of that group owing more than $7,000 in credit card charges.

Students forget to factor in other life costs, such as health care, 401K deductions, income taxes, car payments, auto insurance, rent, utility bills, student loans, credit card bills and food expenses into their monthly budget. "After you graduate and land your first job, you do not think about having to pay for all of these expenses," stated a graduate from Ohio University. "Unfortunately, reality sets in pretty fast and you realize you do not have the money to make ends meet - it is a hard lesson to learn!"

College Debt
Why is there so much credit card debt among college students? "Many credit card companies set up kiosks on college campuses offering free pizzas and t-shirts to try and entice students to sign up for a credit card," noted David Roush, CEO of Insurance.com. "The problem is many college students do not have the income or financial knowledge to manage a credit card - a problem that is leading students into a lifetime of financial despair."

In addition to the outrageous credit card bills, students are also graduating with student loans ranging from $10,000 to $52,000 or more. Often students figure they will be able to pay everything off once they get a job and start making "real" money, but that simply is not the case.
Not only are credit card and student loan bills financially crippling to many new graduates, it is also forcing grads to cut back on other necessary expenses, such as auto insurance - one bill you legally cannot drive without! "Driving without auto insurance is illegal in all 50 states, however, many young adults elect to go without auto insurance because they think they cannot afford to have it," stated Roush. "A scary thought when 15.3% of all automobile accidents are caused by drivers between the ages of 20 - 24."

While deciding not to pay for auto insurance may seem like a good idea at the time, graduates are not considering the expense of getting caught without auto insurance or the cost of getting into an automobile accident. "Imagine if you had to pay the medical bills of someone who gets injured in car accident when you are at fault - suddenly paying for car insurance does not seem so bad," says Roush.

The Penalty of Driving Without Auto Insurance
According to the Insurance Information Institute, the cost of driving without auto insurance can vary from state to state, depending on the percentage of drivers who are uninsured in that state. For instance, in Massachusetts residents can be charged anywhere from $500 to $5,000 in fines and receive a one-year jail sentence. In Florida, Louisiana, Connecticut and New Jersey, drivers operating a vehicle without the state required minimum will have their vehicles impounded - which can cost you thousands depending on how long it takes you to get your car out.

To find out the auto insurance state minimum and fines and penalties for driving without insurance in your state, visit the Department of Motor Vehicles' website.

How to Budget For Auto Insurance
As you look for auto insurance, make sure to check if the insurer offers a 6-month or 12-month payment plan to help you manage your auto insurance payments better. In addition, many auto insurance providers offer a variety of discounts, including alumni discounts. So make sure to ask if your college or university is eligible for a discount, because every bit helps when you are first starting out on your own.

Financial viability of insurance companies

Financial stability and strength of the insurance company should be a major consideration when purchasing an insurance contract. An insurance premium paid currently provides coverage for losses that might arise many years in the future. For that reason, the viability of the insurance carrier is very important. In recent years, a number of insurance companies have become insolvent, leaving their policyholders with no coverage (or coverage only from a government-backed insurance pool with less attractive payouts for losses). A number of independent rating agencies, such as Best's, provide information and rate the financial viability of insurance companies.

Life insurance and saving

Certain life insurance contracts accumulate cash values, which may be taken by the insured if the policy is surrendered or which may be borrowed against. Some policies, such as annuities and endowment policies, are financial instruments to accumulate or liquidate wealth when it is needed. See life insurance.

In many countries, such as the U.S. and the UK, tax law provides that the interest on this cash value is not taxable under certain circumstances. This leads to widespread use of life insurance as a tax-efficient method of saving as well as protection in the event of early death.

In U.S., interest income of life insurance policy (or annuity) is income tax deferred in general. However, its tax deferred benefit may be offset by a low return 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. Combination of low-cost term life insurance and higher return tax-efficient retirement account can achieve better performance.

Types of insurance

Any risk that can be quantified probably has a type of insurance to protect it. Among the different types of insurance are:

# Automobile insurance, also known as auto insurance, car insurance and in the UK as motor insurance, is probably the most common form of insurance and may cover both legal liability claims against the driver and loss of or damage to the vehicle itself. Over most of the United States purchasing an auto insurance policy is required to legally operate a motor vehicle on public roads. Recommendations for which policy limits should be used are specified in a number of books. In some jurisdictions, bodily injury compensation for automobile accident victims has been changed to No Fault systems, which reduce or eliminate the ability to sue for compensation but provide automatic eligibility for benefits.

# Aviation insurance insures against Hull, Spares, Deductible, Hull War and Liability risks

# Boiler insurance (also known as Boiler and Machinery insurance or Equipment Breakdown Insurance)

# Casualty insurance insures against accidents, not necessarily tied to any specific property.

# Credit insurance pays some or all of a loan back when certain things happen to the borrower such as unemployment, disability, or death.

# Directors and Officers Insurance protects an organization (usually a corporation) from costs associated with litigation resulting from mistakes incurred by directors and officers for which they are liable. In the industry, it is usually called "D&O" for short.

# Financial loss insurance protects individuals and companies against various financial risks. For example, a business might purchase cover to protect it from loss of sales if a fire in a factory prevented it from carrying out its business for a time. Insurance might also cover failure of a creditor to pay money it owes to the insured. Fidelity bonds and surety bonds are included in this category.

# Health insurance policies will often cover the cost of private medical treatments if the NHS or other health organizations. It will often mean quicker health care where better facilities are available.

# Income protection insurance policies provide customers with financial support in the event of the policy holder being unable to work through illness or injury. It will provide monthly support to help pay of such financial commitment as mortgages and credit cards.

# Liability insurance covers legal claims against the insured. For example, a homeowner's insurance policy provides the insured with protection in the event of a claim brought by someone who slips and falls on the property, and brings a lawsuit for her injuries. Similarly, a doctor may purchase liability insurance to cover any legal claims against him if his negligence (carelessness) in treating a patient caused the patient injury and/or monetary harm. The protection offered by a liability insurance policy is twofold: a legal defense in the event of a lawsuit commenced against the policyholder, plus indemnification (payment on behalf of the insured) with respect to a settlement or court verdict.

# Purchase insurance is aimed at providing protection on the products people purchase. Purchase insurance can cover individual purchase protection, warranties, guarantees, care plans and even mobile phone insurance.

# Life insurance provides a cash benefit to a decedent's family or other designated beneficiary, and may specifically provide for burial, funeral and other final expenses.

# Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance. Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree will outlive his or her financial resources. In that sense, they are the complement of life insurance.

# Total permanent disability insurance insurance provides benefits when a person is permanently disabled and can no longer work in their profession, often taken as an adjunct to life insurance.

# Locked Funds Insurance is a little known hybrid insurance policy jointly issued by governments and banks. It is used to protect public funds from tamper by unauthorised parties. In special cases, a government may authorise its use in protecting semi-private funds which are liable to tamper. Terms of this type of insurance are usually very strict. As such it is only used in extreme cases where maximum security of funds is required.

# Marine Insurance covers the loss or damage of goods at sea. Marine insurance typically compensates the owner of merchandise for losses sustained from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier.

# Nuclear incident insurance — damages resulting from an incident involving radioactivive materials is generally arranged at the national level. (For the United States, see Price-Anderson Nuclear Industries Indemnity Act.)

# Environmental Liability Insurance protects the insured from bodily injury, property damage and cleanup costs as a result of the dispersal, release or escape of a pollutant.

# Pet Insurance insures pets against accidents and illnesses - some companies cover routine/wellness care and burial, as well.

# Political risk insurance can be taken out by businesses with operations in countries in which there is a risk that revolution or other political conditions will result in a loss.

# Professional Indemnity Insurance is normally a mandatory requirement for professional practitioners such as Architects, Lawyers, Doctors and Accountants to provide insurance cover against potential negligence claims. Non licensed professionals may also purchase malpractice insurance, it is commonly called Errors and Omissions Insurance and covers a service provider for claims made against them that arise out of the performance of specified professional services. For instance, a web site designer can obtain E&O insurance to cover them for certain claims made by third parties that arise out of negligent performance of web site development services.

# Property insurance provides protection against risks to property, such as fire, theft or weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance.

# Title insurance provides a guarantee that title to real property is vested in the purchaser and/or mortgagee, free and clear of liens or encumbrances. It is usually issued in conjunction with a search of the public records done at the time of a real estate transaction.

# Travel insurance is an insurance cover taken by those who travel abroad, which covers certain losses such as medical expenses, lost of personal belongings, travel delay, personal liabilities.. etc.

# Workers' compensation insurance replaces all or part of a worker's wages lost and accompanying medical expense incurred due to a job-related injury.

A single policy may cover risks in one or more of the above categories. For example, car insurance would typically cover both property risk (covering the risk of theft or damage to the car) and liability risk (covering legal claims from say, causing an accident). A homeowner's insurance policy in the U.S. typically includes property insurance covering damage to the home and the owner's belongings, liability insurance covering certain legal claims against the owner, and even a small amount of health insurance for medical expenses of guests who are injured on the owner's property.

Potential sources of risk that may give rise to claims are known as "perils". Examples of perils might be fire, theft, earthquake, hurricane and many other potential risks. An insurance policy will set out in details which perils are covered by the policy and which are not.

Insurer’s Business Model

Profit = Earned Premium + Investment Income - Incurred Loss - Underwriting Expenses.

Insurers make money in two ways. Through underwriting, the process through which insurers select what risks to insure and decide how much premium to charge for accepting those risks and by investing the premiums they have collected from insureds.

The most difficult aspect of the insurance business is the underwriting of policies. Based on a wide assortment of data, insurers predict the likelihood that a claim will be made against their policies and price products accordingly. To this end, the industry uses actuarial science to quantify the risk they are willing to assume. Data is analyzed fairly accurately to project the rate of future claims based on a given risk. Actuarial science uses statistics and probability to analyze the risks associated with the range of perils covered, and these scientific principles are used to determine the insurers overall exposure. At the end of a given policy, the amount of premium collected minus the amount paid out in claims is the insurer's underwriting profit.

An insurer's underwriting performance is measured in their combined ratio. The loss ratio (incurred losses and loss-adjustment expenses divided by net earned premium) is added to the expense ratio (underwriting expenses divided by net premium written) to determine the company's combined ratio. The combined ratio is a reflection of the company's overall underwriting profitability. A combined ratio of less than 100 percent indicates profitability, while anything over 100 indicates a loss.

Insurance companies also earn investment profits on “float”. “Float” or available reserve is the amount of money, at-hand at any given moment, that an insurer has collected in insurance premium but has not been paid out in claims. Insurers start investing insurance premium as soon as it is collected and keeps earning interest on it until claims are paid out.

In the United States, the underwriting loss of property and casualty insurance companies was $142.3 billion in the five years ending 2003. But overall profit for the same period was $68.4 billion, at the result of float. Some insurance industry insiders, most notably Hank Greenberg, do not believe that it is forever possible to sustain a profit from float without an underwriting profit as well, but this opinion is not universally held. Naturally, the “float” method is difficult to carry out in an economically depressed period. Bear markets do cause insurers to shift away from investments and to toughen up their underwriting standards. So a poor economy generally means high insurance premiums. In general, this tendency to swing between profitable and unprofitable time periods alternating over time cycles is commonly known as the "underwriting" or "insurance" cycle.

Insurers currently make the most money from their auto insurance line of business. Generally better statistics are available on auto losses and underwriting on this line of business has benefited greatly from advances in computing. Additionally, property losses in the US, due to natural catastrophes, have perpetuated this trend.

Finally, claims and loss handling is the materialized utility of insurance. Claims handling management in insurance companies is to balance the triangle elements of customer satisfaction, administrative handling expenses, and claims overpayment leakages. Within this triangle, insurance fraud is a major business risk to manage and overcome.

Principles of insurance

From the point of view of the insurance company there are four general criteria for deciding whether to insure events or not.

1. There must be a larger number of similar objects so the financial outcome of insuring the pool of exposures is predictable. Therefore they can calculate a "fair" premium.

2. The losses have to be accidental and unintentional from the point of view of the insured.

3. The losses must be measurable, identifiable in location, time, and be definite. They also want the losses to cause economic hardship. That is, so the insured has an incentive to protect and preserve the property to minimize the probability that the losses occur.

4. The loss potential to the insurer must be non-catastrophic. It cannot put the insurance company in financial jeopardy.

Losses must be uncertain.

The rate and distribution of losses must be predictable: To set premiums (prices) insurers must be able to estimate them accurately. This is done using the Law of Large Numbers which states that: The larger the number of homogenous exposures considered, the more closely the losses reported will equal the underlying probability of loss. If the coverage is unique, the insured will pay a correspondingly higher premium. Lloyd's of London often accepts unique coverages. (e.g., the insuring of Tina Turner's legs and Jennifer Lopez's buttocks)

The loss must be significant: The legal principle of De minimis dictates that trivial matters are not covered. Furthermore, rational insurance uses existing insurance when the transaction costs dictate that filing a claim is not rational. Actually, De minimis does not come into play here. The reality is that it costs too much to insure frequent and/or small losses. It is much more cost effective to not transfer small loss potential to insurance companies by taking the largest deductible that you can stand (given adequate price reduction). As for filing small claims, if the insurance company contractually should pay for it, you should file it. This is the difference between deciding before the contract the parameters and after following through.

The loss must not be catastrophic: If the insurer is insolvent, it will be unable to pay the insured. In the United States, there is a system of Guarantee Funds that run at the state level to reimburse insured people whose insurance companies have become insolvent. [1] This program is run by the National Association of Insurance Commissioners (NAIC). [2] In the United Kingdom, the Financial Services Authority (FSA), which regulates all insurance companies, has its own standards of solvency which must, by law, be adhered to.

To avoid catastrophic depletion of their own capital, insurers almost universally purchase reinsurance to protect them against excessively large accumulations of risk in a single area, and to protect them against large-scale catastrophes.

Additionally, “speculative risks” like those incurred through gambling or through the purchase of company stocks are uninsurable. Insurable risks should have accidental and not intentional losses, and they should have economical feasible premiums, meaning that chance of loss must not be too high.

History of insurance

In some sense we can say that insurance appears simultaneously with appearance of human society. We know two types of economies in human societies: money (with markets, money, financial instruments and so on )and non-money or natural economy (without money, markets, financial instruments and so on). The second type is more ancient form than the first. In such type of economy and such type of community we can see insurance in the form of helping each other. For example, when your house is fired down, the members of your community come and help you to build new one. The next time, when the same thing happens to your neighbour - you must go to help otherwise, you will not get help in the future. This type of insurance survived till nowadays in some countries where modern money economy with its financial instruments are not so widespread (for example countries on the territory of the former Soviet Union).

And now we will speak about insurance in modern sense (insurance in modern money economy, insurance as a part of the financial sphere). Early methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BCE respectively. Chinese merchants traveling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen.

Achaemenian monarchs were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Norouz (beginning of the Iranian New Year); the heads of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony and when a gift was worth more than 10,000 Derrik (Achaemenian gold coin weighing 8.35-8.42) the issue was registered in a special office. This was advantageous to those presented such special gifts. For others, the presents were fairly assessed by the confidants of the court. Then the assessment was registered in special offices.

The aim of registering was that whenever the one who presented the gift registered by the court was in trouble, the monarch and the court would help him or her. Jahez, a historian and writer, writes in one of his books on ancient Iran: "... and whenever the owner of the present is in trouble or wants to construct a building, set up a feast, have his children married, etc. the one in charge of this in the court would check the registration. If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of twice as much."

A thousand years later, the inhabitants of Rhodes invented the concept of the 'general average'. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were jettisoned during storm or sinkage.

The Greeks and Romans introduced the origins of health and life insurance c. 600 AD when they organized guilds called "benevolent societies" which acted to care for the families and funeral expenses of members upon death. Guilds in the Middle Ages served a similar purpose. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used in case of emergency.

Separate insurance contracts (i.e. insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in post-Renaissance Europe, and specialized varieties developed.

Toward the end of the seventeenth century, the growing importance of London as a center for trade led to rising demand for marine insurance. In the late 1680s, Mr. Edward Lloyd opened a coffee house which became a popular haunt of ship owners, merchants, and ships’ captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures. Today, Lloyd's of London remains the leading market for marine and other specialist types of insurance, but it works rather differently than the more familiar kinds of insurance.

Insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured 13,200 houses. In the aftermath of this disaster Nicholas Barbon opened an office to insure buildings. In 1680 he established England's first fire insurance company, "The Fire Office," to insure brick and frame homes.

The first insurance company in the United States provided fire insurance and was formed in Charles Town (modern-day Charleston), South Carolina, in 1732.

Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly against fire in the form of perpetual insurance. In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire prevention. Not only did his company warn against certain fire hazards, it refused to insure certain buildings where the risk of fire was too great, such as all wooden houses.

In the United States, regulation of the insurance industry is highly Balkanized, with primary responsibility assumed by individual State insurance departments. Whereas insurance markets have become centralized nationally and internationally, state insurance commissioners operate individually, though at times in concert through a national insurance commissioner's organization. In recent years, some have called for a federal regulatory system for insurance similar to that of the banking industry.

In the State of New York, which has unique laws in keeping with its stature as a global business center, Attorney General Eliot Spitzer has been in a unique position to grapple with major national insurance brokerages. Spitzer alleged that Marsh & McLennan steered business to insurance carriers based on the amount of contingent commissions that could be extracted from carriers, rather than basing decisions on whether carriers had the best deals for clients. Several of the largest commercial insurance brokerages have since stopped accepting contingent commissions and have adopted new business models.

Traffic Accident

No Win No Fee Claim Compensation

PEDESTRIANS

There’s a pretty high traffic accident rate involving pedestrians all around the world. Of course, the blame is not always the car driver’s. But even when it’s the other way around, the persons who are involved in these clashes as pedestrians have a tendency to put the blame on themselves, which is not always the case. Usually a collision between a pedestrian and a car involves great injuries, of course, not for the car. If you have gone through such a situation and think you are not to blame for what happened, you really have to know your rights. Because there’s a big possibility you can claim.

CYCLISTS

Usually, cyclists suffer from injuries due to the fact that the cars involved in traffic don’t see them. Riding either motorbikes or simple bikes, cyclists are one of the most vulnerable categories of vehicles which participate in traffic. A big number of all the accidents involve a passenger car crossing over a cyclist’s path and thus provoking a collision. The cyclist may often suffer serious injuries due to the lack of protection from the outside world.

CAR DRIVERS

Because of the ever increasing number of cars worldwide each year, car accidents are bound to happen more frequently than ever. The main causes for car accidents seem to be driving under the influence and losing focus while driving because of distractions like cell phones. The sad part is that most of these accidents can be prevented with just a little bit of driver common sense.

Now what happens if you get involved in an accident that was someone else’s fault? You try to keep your concentration on the road ahead, you go in normal speed limits, and still you get crashed by a reckless driver. This is a very frustrating scenario as it seems that sometimes is just a matter of bad luck. And a traffic accident can have dramatic consequences upon the life of a person or an entire family.

Here’s where the traffic accident claim comes in. Right after the accident, you need to do a few things. First, you need to gather as much evidence as you can from the accident scene. And I’m talking about things like: the other car driver’s details (address, phone number, etc.). Then, see if there are any witnesses and do the same with them. If you’re lucky enough and have a photo camera with you, take pictures of your car, emphasizing the damage it suffered. Also, take pictures of the other car involved in the accident and of the accident place. Write down the weather conditions present at the time of the unfortunate event. Try not to discuss anything to the other party involved in the accident, leave that to your lawyer. Finally, contact the police.

When you get home, the first thing you need to do is to find a good attorney who has vas experience regarding traffic accident claims. He will take the case from there. He will examine your evidence and appoint a medical examination, if you haven’t already done that. Medical examinations need to be made regularly, on a time basis established by your attorney. This is a must because not all the long-term repercussions of your injuries can be foreseen right after the accident.

Usually, in accidents which do not have serious consequences, an agreement is reached between the two parts without the need to go to Court. Your attorney will do everything is in his powers to get you a compensation for every bruise you suffered. Along with that, you will probably get compensation for things like: the damage your vehicle has sustained, the damage your other properties have suffered, your medical expenses, even your phone bills. Money reward is the least anyone can get when suffering a traffic accident, and this is made in the form of the traffic accident claim.

The quest of finding a good specialist is not that hard. There are many good companies that have very well trained attorneys who will gladly help you on a no win no fee basis only. Either a work accident or an automobile accident, you name it, it doesn’t really matter as long as you are able to prove that the accident was entirely another party’s fault. Still, there’s a psychological factor that make accident victims who are entitled for a claim decide not to pursue the legal actions required. This is either because they are afraid of the repercussions at the workplace, or the simply try to avoid going to Court. The fact of the matter is that unless a very serious accident happened, your case will probably not have to go to Court.

Disability Insurance

Do We need it?

Your career is a direct result of hard work and a substantial investment of time and money. Doesn’t it make sense to fully protect it? A disability could render you helpless by taking away the one thing that you need to safeguard all of your assets: your income.

Home, auto, life, and health insurance are certainly valuable investments, but failure to couple them with disability insurance will jeopardize your full financial security. For example, health insurance might cover the potential fiscal pitfalls of the medical bills that result from a disability, but the rest of your financial obligations are not going to come to a halt. Vehicle payments, mortgages, insurance premiums, and even savings for the future are all important expenses that cannot be ignored just because you are disabled. Unfortunately, the chances of becoming disabled might be greater than you think.

According to the 1994 Statistical Abstract of the United States, in the course of a year, odds are that 1 in 10 people between the ages of 25 and 64 will suffer a disability. When comparing that ratio to the odds of being victim of a house fire (1 in 122); injured in an automobile accident (1 in 160); or even of death (1 in 117), the advantage of disability insurance is clear. A February 2000 article in the New York Times reported that 1 in 7 people between the ages of 35 and 60 will become disabled for five years or more.

Despite these glaring statistics, many people still take a substantial risk by ignoring the benefits offered by a disability insurance policy. In 2000, a survey by The Consumer Federation of America and The American Council of Life Insurers found that 82 percent of people do not have long-term disability insurance or believe their coverage is inadequate.

The alternatives to disability insurance all carry a degree of risk or have some sort of drawback. Social Security benefits are difficult to qualify for and the disability must prevent you from working in any occupation. Worker’s compensation benefits are limited and only cover job-related sickness or injury. Other options—relying on savings, family, and/or friends—are not guaranteed and have considerable downside.

Guard your assets—don’t leave yourself vulnerable by neglecting to protect your income.

History of Insurance

Condition of Life insurance in Nepal:-

History of general insurance in Nepal goes back to B.S.2005(1948 A.D.). Right from 1950 A.D.,a number of companies started their operation in General insurance. Presently 15 companies are transacting general insurance business. But start and growth of life insurance has been very slow.

Life Insurance Corporation of India started life insurance business in Nepal but its function was mostly confined to Kathmandu city.

LIC stopped its operation in 1972 A.D. Life insurance business was taken over by Rashtriya Beema Sansthan in B.S.2029 after its incorporation on B.S. 2024/09/01 (16-12-1967 A.D.) and by National life and General Insurance Company in B.S.2045(1989A.D.) after its incorporation on B.S.2043/02/19 (2-6-1986)A.D.

The insurance activities were regulated by Insurance Act 2026(1969). The Act and the regulations were modified and new Insurance Act and Regulations were enacted in 2049(1992). Beema Samiti observes and regulates the insurance activities in Nepal as per the provisions of Insurance Act 2049 and Insurance regulations 2049.

Even though the performance of RBS has been impressive, the reach and density of insurance has been very low even in comparison with the insurance density in developing nations.

The life insurance premium Income for nine years from F.Y.2051/52 to 2059/60(Rs. in crore) was as under.

Benefits of Loan Consolidation

As you probably know, credit scores play a major role in determining whether or not you get an apartment, house, car, cellular phone - the list goes on indefinitely. It's your way of showing companies that you are trustworthy and reliable enough to make consistent and timely payments on acquisitions that are more expensive. Having a bad credit score taints you, jeopardizing your chances of being approved by creditors.

Credit scores are negatively affected by late payments, incomplete or partial payments, defaults, and judgments and liens. The score can be broken down into several components: 35 percent of your score depends on your payment history; 30 percent, on your outstanding debt; 15 percent, the length of your credit history; 10 percent, recent inquiries on your credit report; and 10 percent, the types of credit your currently use.

Because a student loan is money owed, it adversely affects your payment history and your outstanding debt, which comprises 65 percent of your total credit score. This, of course, may be debilitating to your credit.

Stafford loans, which are the most common type of student loans, are often issued in subsidized and unsubsidized portions. An undergraduate student could graduate with as many as four subsidized Stafford loans and four unsubsidized Stafford Loans, totaling eight separate loans. Furthermore, most students don't make payments on their loans until after they graduate.

In summation, undergraduate students may have eight loans in four years without a single payment. Graduate students who use loans to finance their educations leave school with advanced degrees and even more unconsolidated debt.

Obviously, there are extenuating circumstances. How can you, as a student, be expected to pay off your debts? You've been concentrating on schoolwork. How can a full-time student work full-time? Lenders recognize this and often offer grace periods, which exempt students from repayment for a few months after graduation.

Unfortunately, computers are responsible for calculating credit reports. For calculating machines, numbers are numbers, regardless of how compelling your story may be. Eight loans, four years, and no payments make a horrible combination.

A lesser-known benefit of consolidation is the fact that it improves your credit score. When you consolidate, your new lender pays off all of your eight loans, and then opens up one new consolidation loan. When a computer calculates your credit score, it will see this: eight loans paid in full. You will look like a responsible and trustworthy borrower.

Consolidation increases your credit score because it pays off all your old loans and reduces your number of open accounts.