the different of wiki hosting

This examination of wiki facilitating administrations points of interest remarkable online administrations which have wiki-style editable site pages. General attributes of cost, vicinity of publicizing, permitting, and Alexa rank are analyzed, as are specialized contrasts in altering, highlights, wiki motor, multilingual backing and linguistic structure support.
General Comparison The accompanying tables analyze general data for a few of the more than 100 wiki facilitating administrations that have been created. The Alexa activity rankings are not exact for those wiki facilitating administrations that permit some of their facilitated wikis to have separate area names. In those cases there might be some extra Alexa rankings recorded underneath for a percentage of the bigger individual wikis in a wiki facilitating administration. Additionally, the Alexa rankings might be distinctive as for time. Every one of the wikis on Wiki.Wiki have separate spaces. So no Alexa positioning is recorded for them

Security of hosting

Committed facilitating server suppliers use amazing efforts to establish safety to guarantee the wellbeing of information put away on their system of servers. Suppliers will regularly convey different programming programs for checking frameworks and systems for prominent intruders, spammers, programmers, and other hurtful issues, for example, Trojans, worms, and crashers (Sending various associations). Linux and Windows use diverse programming for security insurance.

Property insurance

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.

History

Property insurance can be traced to the Great Fire of London, which in 1666 devoured more than 13,000 houses. The devastating effects of the fire converted the development of insurance "from a matter of convenience into one of urgency, a change of opinion reflected in Sir Christopher Wren's inclusion of a site for 'the Insurance Office' in his new plan for London in 1667".[1] A number of attempted fire insurance schemes came to nothing, but in 1681, economist Nicholas Barbon and eleven associates established the first fire insurance company, the "Insurance Office for Houses", at the back of the Royal Exchange to insure brick and frame homes. Initially, 5,000 homes were insured by Barbon's Insurance Office.

In the wake of this first successful venture, many similar companies were founded in the following decades. Initially, each company employed its own fire department to prevent and minimise the damage from conflagrations on properties insured by them. They also began to issue 'Fire insurance marks' to their customers; these would be displayed prominently above the main door to the property in order to aid positive identification. One such notable company was the Hand in Hand Fire & Life Insurance Society, founded in 1696 at Tom's Coffee House in St. Martin's Lane in London.

The first property insurance company still extant was founded in 1710 as the 'Sun Fire Office' now, through many mergers and acquisitions, the RSA Insurance Group.

In Colonial America, Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly Property insurance to spread the risk of loss from 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 refused to insure certain buildings, such as wooden houses, where the risk of fire was too great.

Types of Coverage

There are the three types of insurance coverage. Replacement cost coverage pays the cost of repairing or replacing your property with like kind & quality regardless of depreciation or appreciation. Premiums for this type of coverage are based on replacement cost values, and not based on actual cash value.[4] Actual cash value coverage provides for replacement cost minus depreciation. Extended replacement cost will pay over the coverage limit if the costs for construction have increased. This generally will not exceed 25% of the limit. When you obtain an insurance policy, the coverage limit established is the maximum amount the insurance company will pay out in case of loss of property.

This amount will need to fluctuate if the cost to replace homes in your neighborhood is rising; the amount needs to be in step with the actual reconstruction value of your home. In case of a fire, household content replacement is tabulated as a percentage of the value of the home. In case of high-value items, the insurance company may ask to specifically cover these items separate from the other household contents. One last coverage option is to have alternative living arrangements included in a policy.[citation needed] If a fire leaves your home uninhabitable, the policy can help pay for a hotel or other living arrangements.

Universal life insurance

Universal life insurance (often shortened to UL) is a type of permanent life insurance, primarily in the United States of America. Under the terms of the policy, the excess of premium payments above the current cost of insurance is credited to the cash value of the policy. The cash value is credited each month with interest, and the policy is debited each month by a cost of insurance (COI) charge, as well as any other policy charges and fees which are drawn from the cash value, even if no premium payment is made that month. Interest credited to the account is determined by the insurer, but has a contractual minimum rate (often 2%). When an earnings rate is pegged to a financial index such as a stock, bond or other interest rate index, the policy is an "Indexed Universal Life" contract. These types of policies offer the advantage of guaranteed level premiums throughout the insured's lifetime at substantially lower premium cost than an equivalent whole life policy. This not only allows for easy comparison of costs between carriers, but also works well in irrevocable life insurance trusts (ILIT's) since cash is of no consequence.

Similar life insurance types

A similar type of policy that was developed from universal life insurance is the variable universal life insurance policy (VUL). VUL allows the cash value to be directed to a number of separate accounts that operate like mutual funds and can be invested in stock or bond investments with greater risk and potential growth. Additionally, there is the recent addition of index universal life contracts similar to equity-indexed annuities credit interest linked to the positive movement of an index, such as the S&P 500, Russell 2000, and the Dow Jones. Unlike VUL, the cash value of an Index UL policy generally has principal protection, less the costs of insurance and policy administrative fees. Index UL participation in the index may have a cap, margin, or other participation modifier, as well as a minimum guaranteed interest rate.

Universal life is similar in some ways to, and was developed from, whole life insurance, although the actual cost of insurance inside the UL policy is based on annually renewable term life insurance. The advantage of the universal life policy is its premium flexibility and adjustable death benefits. The death benefit can be increased (subject to insurability), or decreased at the policy owner's request.

The premiums are flexible, from a minimum amount specified in the policy, to the maximum amount allowed by the contract. The primary difference is that the universal life policy shifts some of the risk for maintaining the death benefit to the policy owner. In a whole life policy, as long as every premium payment is made, the death benefit is guaranteed to the maturity date in the policy, usually age 95, or to age 121. A UL policy will lapse when the cash values are no longer sufficient to cover the cost of insurance and policy administrative expense.

To make UL policies more attractive, insurers have added secondary guarantees, where if certain minimum premium payments are made for a given period, the policy will remain in force for the guaranteed period even if the cash value drops to zero. These are commonly called "No Lapse Guarantee" riders, and the product is commonly called guaranteed universal life (GUL, not to be confused with group universal life insurance, which is also typically shortened to GUL).

The trend up until 2007–2008 was to reduce premiums on GUL to the point where there was virtually no cash surrender values at all, essentially creating a level term policy that could last to age 121. Since then, many companies have introduced either a second GUL policy that has a slightly higher premium, but in return the policy owner has cash surrender values that show a better internal rate of return on surrender than the additional premiums could earn in a risk-free investment outside of the policy.

With the requirement for all new policies to use the latest mortality table (CSO 2001) beginning January 1, 2004, many GUL policies have been repriced, and the general trend is toward slight premium increases compared to the policies from 2008.

Another major difference between universal life and whole life insurances: the administrative expenses and cost of insurance within a universal life contract are transparent to the policy owner, whereas the assumptions the insurance company uses to determine the premium for a whole life insurance policy are not transparent.

Uses of universal life insurance

Final expenses, such as a funeral, burial, and unpaid medical bills
Income replacement, to provide for surviving spouses and dependent children
Debt coverage, to pay off personal and business debts, such as a home mortgage or business operating loan
Estate liquidity, when an estate has an immediate need for cash to settle federal estate taxes, state inheritance taxes, or unpaid income taxes on income in respect of a decedent (IRD).
Estate replacement, when an insured has donated assets to a charity and wants to replace the value with cash death benefits.

Business succession & continuity, for example to fund a cross-purchase or stock redemption buy/sell agreement.

Key person insurance, to protect a company from the economic loss incurred when a key employee or manager dies.

Executive bonus, under IRC Sec. 162, where an employer pays the premium on a life insurance policy owned by a key person. The employer deducts the premium as an ordinary business expense, and the employee pays the income tax on the premium.

Controlled executive bonus, just like above, but with an additional contract between an employee and employer that effectively limits the employees access to cash values for a period of time (golden handcuffs).

Split dollar plans, where the death benefits, cash surrender values, and premium payments are split between an employer and employee, or between an individual and a non-natural person (e.g. trust).
Non-qualified deferred compensation, as an informal funding vehicle where a corporation owns the policy, pays the premiums, receives the benefits, and then uses them to pay, in whole or in part, a contractual promise to pay retirement benefits to a key person, or survivor benefits to the deceased key person's beneficiaries.

An alternative to long-term care insurance, where new policies have accelerated benefits for Long Term Care.

Mortgage acceleration, where an over-funded UL policy is either surrendered or borrowed against to pay off a home mortgage.

Life insurance retirement plan, or Roth IRA alternative. High income earners who want an additional tax shelter, with potential creditor/predator protection, who have maxed out their IRA, who are not eligible for a Roth IRA, and who have already maxed out their qualified plans.
Term life insurance alternative, for example when a policy owner wants to use interest income from a lump sum of cash to pay a term life insurance premium. An alternative is to use the lump sum to pay premiums into a UL policy on a single premium or limited premium basis, creating tax arbitrage when the costs of insurance are paid from untaxed excess interest credits, which may be crediting at a higher rate than other guaranteed, no risk asset classes (e.g. U.S. Treasury Bonds or U.S. Savings Bonds).

Whole life insurance alternative, where there is any need for permanent death benefits, but little or no need for cash surrender values, then a current assumption UL or GUL may be an appropriate alternative, with potentially lower net premiums.
Annuity alternative, when a policy owner has a lump sum of cash that they intend to leave to the next generation, a single premium UL policy provides similar benefits during life, but has a stepped up death benefit that is income tax-free.
Pension maximization, where permanent death benefits are needed so an employee can elect the highest retirement income option from a defined benefit pension.
Annuity maximization, where a large non-qualified annuity with a low cost basis is no longer needed for retirement and the policy owner wants to maximize the value for the next generation. There is potential for arbitrage when the annuity is exchanged for a single premium immediate annuity (SPIA), and the proceeds of the SPIA are used to fund a permanent death benefit using Universal Life. This arbitrage is magnified at older ages, and when a medical impairment can produce substantially higher payments from a medically underwritten SPIA.
RMD maximization, where an IRA owner is facing required minimum distributions (RMD), but has no need for current income, and desires to leave the IRA for heirs. The IRA is used to purchase a qualified SPIA that maximizes the current income from the IRA, and this income is used to purchase a UL policy.

Creditor/predator protection. A person who earns a high income, or who has a high net worth, and who practices a profession that suffers a high risk from predation by litigation, may benefit from using UL as a warehouse for cash, because in some states the policies enjoy protection from the claims of creditors, including judgments from frivolous lawsuits.

Living benefits of life insurance

Many people use life insurance, and in particular cash value life insurance, as a source of benefits to the owner of the policy (as opposed to the death benefit which provides benefit to the beneficiary). These benefits include loans, withdrawals, collateral assignments, split dollar agreements, pension funding, and tax planning.

Loans

Most universal life policies come with an option to take a loan on certain values associated with the policy. These loans require interest payments which are paid to the insurance company. The insurer charges interest on the loan because they are no longer able to receive any investment benefit from the money that has been loaned to you.

Repayment of the loan principal is not required, but payment of the loan interest is required. If the loan interest is not paid, it will be deducted from the cash value of the policy. If there is not sufficient value in the policy to cover interest, the policy will lapse.

Loans are not reported to any credit agency and payment or non-payment against them will not affect the policyholder's credit rating. If the policy has not become a "modified endowment", the loans are withdrawn from the policy values as premium first and then any gain.[3] Taking Loans on UL will affect the long-term viability of the plan. The cash values removed by loan are no longer earning the interest expected, so the cash values will not grow as expected. This will shorten the life of the policy. Usually those loans will cause a greater than expected premium payment as well as interest payments.

Outstanding loans will be deducted from the death benefit at the death of the insured.

Withdrawals

If done within IRS Regulations, an Equity Indexed Universal Life policy can provide income that is tax-free. This is done through withdrawals that do not exceed the total premium payments made into the policy. Also, tax-free withdrawals can be made through internal policy loans offered by the insurance company, against any additional cash value within the policy. (This income can exceed policy premiums and still be taken 100% tax-free.) If the policy is set up, funded and distributed properly, according to IRS regulations, an Equity Indexed UL policy can provide an investor with many years of tax-free income.

Most universal life policies come with an option to withdraw cash values rather than take a loan. The withdrawals are subject to contingent deferred sales charges and may also have additional fees defined by the contract. Withdrawals will permanently lower the death benefit of the contract at the time of the withdrawal.

Withdrawals are taken out premiums first and then gains, so it is possible to take a tax-free withdrawal from the values of the policy (this assumes the policy is not a MEC, i.e. "modified endowment contract"). Withdrawals are considered a material change and cause the policy to be tested for MEC. As a result of a withdrawal, the policy may become a MEC and could lose its tax advantages.

Withdrawing values will affect the long-term viability of the plan. The cash values removed by loan are no longer earning the interest expected, so the cash values will not grow as expected. To some extent this issue is mitigated by the corresponding lower death benefit.

Collateral assignments

Collateral assignments will often be placed on life insurance to guarantee the loan upon the death of debtor. If a collateral assignment is placed on life insurance the assignee will receive any amount due to them before the beneficiary is paid. If there is more than one assignee, the assignees are paid based on date of the assignment, i.e. the earlier assignment date gets paid before the later assignment date.


Types

Single premium

A Single Premium UL is paid for by a single, substantial, initial payment. Some policies do not allow any more than the one premium contractually, and some policies are casually defined as single premium because only one premium was intended to be paid.[2] The policy remains in force so long as the COI charges have not depleted the account. These policies were very popular prior to 1988, as life insurance is generally a tax deferred plan, and so interest earned in the policy was not taxable as long as it remained in the policy. Further withdrawals from the policy were taken out principal first, rather than gain first and so tax free withdrawals of at least some portion of the value were an option. In 1988 changes were made in the tax code, and single premium policies purchased after were "modified endowment contract" (MEC) and subject to less advantageous tax treatment. Policies purchased before the change in code are not subject to the new tax law unless they have a "material change" in the policy (usually this is a change in death benefit or risk). It is important to note that a MEC is determined by total premiums paid in a 7-year period, and not by single payment. The IRS defines the method of testing whether a life insurance policy is a MEC. At any point in the life of a policy, a premium or a material change to the policy could cause it to lose its tax advantage and become a MEC.

In a MEC, the premiums and accumulation will be taxed just like an annuity upon withdrawing. The accumulations will grow tax deferred and will still transfer tax free to the beneficiary under Internal Revenue Service Code 101a under certain circumstances.

Fixed premium

Fixed Premium UL is paid for by periodic premium payments associated with a no lapse guarantee in the policy. Sometimes the guarantees are part of the base policy and sometimes the guarantee is an additional rider to the policy. Generally these payments will be for a shorter period of time than the policy is in force; for example payments may be made for 10 years, with the intention that thereafter the policy is paid-up. But it can also be permanent fixed payment for the life of policy.

Since the base policy is inherently based on cash value, the fixed premium policy only works if it is tied to a guarantee. If the guarantee is lost, the policy reverts to it flexible premium status. And if the guarantee is lost, the planned premium may no longer be sufficient to keep the coverage active. If the experience of the plan is not as good as predicted, the account value at the end of the premium period may not be adequate to continue the policy as originally written. In this case, the policyholder may have the choice to either:

Leave the policy alone, and let it potentially expire early (if COI charges deplete the account), or
Make additional or higher premium payments, to keep the death benefit level, or
Lower the death benefit.

Many universal life contracts taken out in the high interest periods of the 1970s and 1980s faced this situation and lapsed when the premiums paid were not enough to cover the cost of insurance.

Flexible premium

Flexible Premium UL allows the policyholder to vary their premiums within certain limits. Inherently UL policies are flexible premium, but each variation in payment has a long-term effect that must be considered. In order to remain active, the policy must have sufficient available cash value to pay for the cost of insurance. Higher than expected payments could be required if the policyholder has skipped payments or has been paying less than originally planned. It is recommended that yearly illustrative projections be requested from the insurer so that future payments and outcomes can be planned.

In addition, Flexible Premium UL may offer a number of different death benefit options, which typically include at least the following:

a level death benefit (often called Option A or Option 1, Type 1, etc.), or

a level amount at risk (often called Option B, etc.); this is also referred to as an increasing death benefit.

Policyholders may also buy Flexible Premium UL with a large initial deposit, thereafter making payments irregularly.

Criticism

Unlawfully sold to individuals as an investment

In the US, it is illegal under the Investment Advisers Act of 1940 to offer Universal Life Insurance as an "investment" to individuals, but it is frequently offered by agents as a tax-advantaged financial vehicle from which they can borrow as needed later without tax penalties. This also makes it an alternative for individuals who are not able to contribute to a Roth IRA due to IRS income restraints.

It is illegal to market Index Universal Life (IUL) as an "investment security", as defined by the Securities Act of 1933 & the Securities Act of 1934. These Acts of Congress gave birth to the SEC, in reaction to the stock market crash of 1929 that led to the Great Depression. Today, the SEC oversees FINRA and they both regulate the marketing and sale of securities. IUL is an insurance product and does not meet the definition of a security, so it does not fall under the authority of the SEC or FINRA.

Therefore, under the authority of the SEC and FINRA, Index Universal Life Insurance cannot be marketed or sold as a "security", "variable security", "variable investment" or direct investment in a "security" (or the stock market), because it is not. However, IUL can be marketed and sold as an investment.

Conflict of interest
Agents who sell Universal Life Insurance often receive commissions equal to the first year of target premiums providing an incentive to sell these policies over other less expensive term life insurance policies.

Proponents respond that it would be inaccurate to state that term insurance is less expensive than universal life, or for that matter, other forms of permanent life insurance, without qualifying the statement with the other factor: Time, or length of coverage.

While term life insurance is the least expensive over a short period, say one to twenty years, permanent life insurance is generally the least expensive over a longer period, or over one's entire lifetime. This is mainly due to the high percentage of the premiums paid out in commissions during the first 10–12 years.

Misunderstood risk to policyholders
Interest rate risk: UL is a complex policy with risk to the policyholder. Its flexible premiums include a risk that the policyholder may need to pay a greater than planned premium in order to maintain the policy. This can happen if the expected interest paid on the accumulated values is less than originally assumed at purchase. This happened to many policyholders who purchased their policies in the mid-1980s when interest rates were very high. As the interest rates lowered, the policy did not earn as expected and the policyholder was forced to pay more to maintain the policy. If any form of loan is taken on the policy, this may cause the policyholder to pay a greater than expected premium, because the loaned values are no longer in the policy to earn for the policyholder. If the policyholder skips payments or makes late payments, it is possible that this will need to be made up for in later years by making larger than expected payments.  Market factors relating to the 2008 stock market crash adversely affected many policies by increasing premiums, decreasing benefit, or decreasing the term of coverage.[6] On the other hand, many older policies (especially those which are well-funded) are benefiting from the unusually high interest guarantees of 4% or 4.5% which were common for policies issued prior to 2000. Policies from that era may benefit from voluntary increases in premium, which capture these artificially high rates.

No-lapse guarantees, or death benefit guarantees: A well informed policyholder should understand that the flexibility of the policy is tied irrevocably to risk to the policyholder. The more guarantees a policy has, the more expensive its cost. And with UL, many of the guarantees are tied to an expected premium stream. If the premium is not paid on time, the guarantee may be lost and cannot be reinstated. For example, some policies will offer a "no lapse" guarantee, which states that if a stated premium is paid in a timely manner, the coverage will remain in force, even if there is not sufficient cash value to cover the mortality expenses. It is important to distinguish between this no lapse guarantee and the actual death benefit coverage. The death benefit coverage is paid for by mortality charges (also called cost of insurance). As long as these charges can be deducted from the cash value, the death benefit is active. The "no lapse" guarantee is a safety net that provides for coverage in the event that the cash value isn't large enough to cover the charges. This guarantee will be lost if the policyholder does not make the premium as agreed, although the coverage itself may still be in force. Some policies do not provide for the possibility of reinstating this guarantee. Sometimes the cost associated with the guarantee will still be deducted even if the guarantee itself is lost (those fees are often built into the cost of insurance and the costs will not adjust when the guarantee is lost). Some policies provide an option for reinstating the guarantee within certain time frames and/or with additional premiums (usually catching up the deficit of premiums and an associated interest). No-lapse guarantees can also be lost when loans or withdrawals are taken against the cash values.

Miscellaneous
The single largest asset class of all but one of the largest banks in the United States is permanent cash value life insurance, commonly referred to as BOLI, or Bank Owned Life Insurance. During the recent economic crisis, banks accelerated their purchasing of BOLI as it was the single most secure investment they could make. One banker described BOLI as a "constantly resetting municipal bond that I never have to mark to market."[7] The majority of BOLI is current assumption Universal Life, usually sold as a single premium contract.

Disability insurance

Disability Insurance, often called DI or disability income insurance, or income protection, is a form of insurance that insures the beneficiary's earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work. For example, the worker may suffer from an inability to maintain composure in the case of psychological disorders or an injury, illness or condition that causes physical impairment or incapacity to work. It encompasses paid sick leave, short-term disability benefits (STD), and long-term disability benefits (LTD). Statistics show that in the US a disabling accident occurs on average once every second. In fact, nearly 18.5% of Americans are currently living with a disability,[citation needed] and 1 out of every 4 persons in the US workforce will suffer a disabling injury before retiremen

In the late 19th century, modern disability insurance began to become available. It was originally known as "accident insurance".The first company to offer accident insurance was the Railway Passengers Assurance Company, formed in 1848 in England to insure against the rising number of fatalities on the nascent railway system. It was registered as the Universal Casualty Compensation Company to:

...grant assurances on the lives of persons travelling by railway and to grant, in cases, of accident not having a fatal termination, compensation to the assured for injuries received under certain conditions.
The company was able to reach an agreement with the railway companies, whereby basic accident insurance would be sold as a package deal along with travel tickets to customers. The company charged higher premiums for second and third class travel due to the higher risk of injury in the roofless carriages.

Individual disability insurance
Those whose employers do not provide benefits, and self-employed individuals who desire disability coverage, may purchase policies. Premiums and available benefits for individual coverage vary considerably between companies, occupations, states and countries. In general, premiums are higher for policies that provide more monthly benefits, offer benefits for longer periods of time, and start payments of benefits more quickly following a disability claim. 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. Web-based disability insurance calculators assist in determining the disability insurance needed.

High-limit disability insurance
High-limit disability insurance is designed to keep individual disability benefits at 65% of income regardless of income level. Coverage is typically issued supplemental to standard coverage. With high-limit disability insurance, benefits can be anywhere from an additional $2,000 to $100,000 per month. Single policy issue and participation (individual or group long-term disability) coverage has gone up to $30,000 with some hospitals.

Business overhead expense disability insurance
Business Overhead Expense (BOE) coverage reimburses a business for overhead expenses should the owner experience a disability. Eligible benefits include: rent or mortgage payments, utilities, leasing costs, laundry/maintenance, accounting/billing and collection service fees, business insurance premiums, employee salaries, employee benefits, property tax, and other regular monthly expenses.

National social insurance programs
In 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 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 other disability insurance. In other words, they are the safety net that catches everyone who was otherwise (a) uninsured or (b) underinsured. As such, they are large programs with many beneficiaries. The general theory of the benefit formula is that the benefit is enough to prevent abject poverty.

In addition to federally funded programs, there are five states which currently offer state funded Disability Insurance programs. These programs are designed for short term disabilities only. The coverage amount is determined by the applicant's level of income over the previous 12 months. The states which currently fund disability insurance programs are California, New York, New Jersey, Rhode Island, and Hawaii.

Employer-supplied disability insurance
One of the most common reasons for disability is on-the-job injury, which explains why the second largest 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 disability insurance policies.

Workers' compensation
Main article: Workers' compensation
Workers' 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 compensates for economic loss (past and future), reimbursement or payment of medical and life expenses (functioning in this case as a form of health insurance), and benefits payable to the dependents of workers killed during employment (offering a form of life insurance). Workers compensation provides no coverage to those not working. Statistics have shown that the majority of disabilities occur while the injured person is not working and therefore is not covered by workers' compensation.

Newsweek magazine's cover story for March 5, 2007 discussed the problems that American veterans of Afghanistan and Iraq wars have faced in receiving VA benefits. The article describes one veteran who waited 17 months to start receiving payments. Another article, in the New York Times, points out that besides long waits, there is also variation based on the veteran's state of residence and whether he/she is a veteran of the Army, National Guard, or Reserves.  The Newsweek article says that it can be difficult for a veteran to get his or her claim approved; Newsweek described the benefits thusly:

"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."
The 2007 figures cited above correspond in 2012 to $2,673 a month (more with children) and, for the 50% rating, $797 a month for a single veteran.

According to a sidebar in the same Newsweek article, the Americans injured in these wars, for all the obstacles to proper care, will probably receive much better compensation and health care than equally injured Afghan or Iraqi soldiers.

Health insurance

Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care and health system expenses, among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is available to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity. According to the Health Insurance Association of America, health insurance is defined as "coverage that provides for the payments of benefits as a result of sickness or injury. Includes insurance for losses from accident, medical expense, disability, or accidental death and dismemberment" .

A health insurance policy is:
Health insurance
A contract between an insurance provider (e.g. an insurance company or a government) and an individual or his/her sponsor (e.g. an employer or a community organization). The contract can be renewable (e.g. annually, monthly)or lifelong in the case of private insurance, or be mandatory for all citizens in the case of national plans. The type and amount of health care costs that will be covered by the health insurance provider are Health insurance specified in writing, in a member contract or "Evidence of Coverage" booklet for private insurance, or in a national health policy for public insurance.
Provided by an employer-sponsored self-funded ERISA plan. The company generally advertises that they have one of the big insurance companies. However, in an ERISA case, that insurance company "doesn't engage in the act of insurance", they just administer it. Therefore, ERISA plans are not subject to state laws. ERISA plans are governed by federal law under the jurisdiction of the US Department of Labor (USDOL). The specific benefits or coverage details are found in the Summary Plan Description (SPD). An appeal must go through the insurance company, then to the Employer's Plan Fiduciary. If still required, the Fiduciary's decision can be brought to the USDOL to review for ERISA compliance, and then file a lawsuit in federal court.
The individual insured person's obligations may take several forms:
Premium: The amount the policy-holder or their sponsor (e.g. an employer) pays to the health plan to purchase health coverage.
Deductible: The amount that the insured must pay out-of-pocket before the health insurer pays its share. For example, policy-holders might have to pay a $500 deductible per year, before any of their health care is covered by the health insurer.Health insurance It may take several doctor's visits or prescription refills before the insured person reaches the deductible and the insurance company starts to pay for care. Furthermore, most policies do not apply co-pays for doctor's visits or prescriptions against your deductible.
Co-payment: The amount that the insured person must pay out of pocket before the health insurer pays for a particular visit or service. For example, an insured person might pay a $45 co-payment for a doctor's visit, or to obtain a prescription. A co-payment must be paid each time a particular service is obtained.
Coinsurance: Instead of, or in addition to, paying a fixed amount up front (a co-payment), the co-insurance is a percentage of the total cost that insured person may also pay. For example, the member might have to pay 20% of the cost of a surgery over and above a co-payment, while the insurance company pays the other 80%. If there is an upper limit on coinsurance, the policy-holder could end up owing very little, or a great deal, depending on the actual costs of the services they obtain.
Exclusions: Not all services are covered. The insured are generally expected to pay the full cost of non-covered services out of their own pockets.
Coverage limits: Some health insurance policies only pay for health care up to a certain dollar amount. The insured person may be expected to pay any charges in excess of the health plan's maximum payment for a specific service. In addition,Health insurance some insurance company schemes have annual or lifetime coverage maxima. In these cases, the health plan will stop payment when they reach the benefit maximum, and the policy-holder must pay all remaining costs.
Out-of-pocket maxima: Similar to coverage limits, except that in this case, the insured person's payment obligation ends when they reach the out-of-pocket maximum, and health insurance pays all further covered costs. Out-of-pocket maxima can be limited to a specific benefit category (such as prescription drugs) or can apply to all coverage provided during a specific benefit year.
Capitation: An amount paid by an insurer to a health care provider, for which the provider agrees to treat all members of the insurer.
In-Network Provider: (U.S. term) A health care provider on a list of providers preselected by the insurer. The insurer will offer discounted coinsurance or co-payments, or additional benefits, to a plan member to see an in-network provider. Generally, providers in network are providers who have a contract with the insurer to accept rates further discounted from the "usual and customary" charges the insurer pays to out-of-network providers.
Prior Authorization: A certification or authorization that an insurer provides prior to medical service occurring. Obtaining an authorization means that the insurer is obligated to pay for the service, assuming it matches what was authorized. Many smaller,Health insurance routine services do not require authorization.
Explanation of Benefits: A document that may be sent by an insurer to a patient explaining what was covered for a medical service, and how payment amount and patient responsibility amount were determined.
Prescription drug plans are a form of insurance offered through some health insurance plans. In the U.S., the patient usually pays a copayment and the prescription drug insurance part or all of the balance for drugs covered in the formulary of the plan. Such plans are routinely part of national health insurance programs. For example, in the province of Quebec, Canada, prescription drug insurance is universally required as part of the public health insurance plan, but may be purchased and administered either through private or group plans, or through the public plan.

Some, if not most, health care providers in the United States will agree to bill the insurance company if patients are willing to sign an agreement that they will be responsible for the amount that the insurance company doesn't pay. The insurance company pays out of network providers according to "reasonable and customary" charges, which may be less than the provider's usual fee. The provider may also have a separate contract with the insurer to accept what amounts to a discounted rate or capitation to the provider's standard charges. It generally costs the patient less to use an in-network provider.

Comparison

The Commonwealth Fund, in its annual survey, "Mirror, Mirror on the Wall", compares the performance of the health care systems in Australia, Health insuranceNew Zealand, the United Kingdom, Germany, Canada and the U.S. Its 2007 study found that, although the U.S. system is the most expensive, it consistently under-performs compared to the other countries.[6] One difference between the U.S. and the other countries in the study is that the U.S. is the only country without universal health insurance coverage.


The Commonwealth Fund completed its thirteenth annual health policy survey in 2010. A study of the survey "found significant differences in access, cost burdens, and problems with health insurance that are associated with insurance design".Health insurance Of the countries surveyed, the results indicated that people in the United States had more out-of-pocket expenses, more disputes with insurance companies than other countries, and more insurance payments denied; paperwork was also higher although Germany had similarly high levels of paperwork Health insurance

Australia[edit]
Main article: Health care in Australia
The public health system is called Medicare. It ensures free universal access to hospital treatment and subsidised out-of-hospital medical treatment. It is funded by a 1.5% tax levy on all taxpayers, an extra 1% levy on high income earners, as well as general revenue.

The private health system is funded by a number of private health insurance organizations. The largest of these is Medibank, which was government-owned until 2014 when it was listed on the Australian Stock Exchange.

Some private health insurers are 'for profit' enterprises such as Australian Unity, and some are non-profit organizations such as HCF and the HBF Health Fund (HBF). Some have membership restricted to particular groups, but the majority have open membership. Membership to most health funds is now also available through comparison websites like moneytime, Comparethemarket.com, iSelect Ltd., Choosi and YouCompare. These comparison sites operate on a commission-basis by agreement with their participating health funds. The Private Health Insurance Ombudsman also operates a free website which allows consumers to search for and compare private health insurers' products, which includes information on price and level of cover.

Most aspects of private health insurance in Australia are regulated by the Private Health Insurance Act 2007. Complaints and reporting of the private health industry is carried out by an independent government agency, the Private Health Insurance Ombudsman. The ombudsman publishes an annual report that outlines the number and nature of complaints per health fund compared to their market share

The private health system in Australia operates on a "community rating" basis, whereby premiums do not vary solely because of a person's previous medical history, current state of health, or (generally speaking) their age (but see Lifetime Health Cover below). Balancing this are waiting periods, in particular for pre-existing conditions (usually referred to within the industry as PEA, which stands for "pre-existing ailment"). Funds are entitled to impose a waiting period of up to 12 months on benefits for any medical condition the signs and symptoms of which existed during the six months ending on the day the person first took out insurance. They are also entitled to impose a 12-month waiting period for benefits for treatment relating to an obstetric condition, and a 2-month waiting period for all other benefits when a person first takes out private insurance. Funds have the discretion to reduce or remove such waiting periods in individual cases. They are also free not to impose them to begin with, but this would place such a fund at risk of "adverse selection", attracting a disproportionate number of members from other funds, or from the pool of intending members who might otherwise have joined other funds. It would also attract people with existing medical conditions, who might not otherwise have taken out insurance at all because of the denial of benefits for 12 months due to the PEA Rule. The benefits paid out for these conditions would create pressure on premiums for all the fund's members, causing some to drop their membership, which would lead to further rises in premiums, and a vicious cycle of higher premiums-leaving members would ensue.

The Australian government has introduced a number of incentives to encourage adults to take out private hospital insurance. These include:

Lifetime Health Cover: If a person has not taken out private hospital cover by 1 July after their 31st birthday, then when (and if) they do so after this time, their premiums must include a loading of 2% per annum for each year they were without hospital cover. Thus, a person taking out private cover for the first time at age 40 will pay a 20 percent loading. The loading is removed after 10 years of continuous hospital cover. The loading applies only to premiums for hospital cover, not to ancillary (extras) cover.
Medicare Levy Surcharge: People whose taxable income is greater than a specified amount (in the 2011/12 financial year $80,000 for singles and $168,000 for couples) and who do not have an adequate level of private hospital cover must pay a 1% surcharge on top of the standard 1.5% Medicare Levy. The rationale is that if the people in this income group are forced to pay more money one way or another, most would choose to purchase hospital insurance with it, with the possibility of a benefit in the event that they need private hospital treatment – rather than pay it in the form of extra tax as well as having to meet their own private hospital costs.
The Australian government announced in May 2008 that it proposes to increase the thresholds, to $100,000 for singles and $150,000 for families. These changes require legislative approval. A bill to change the law has been introduced but was not passed by the Senate. An amended version was passed on 16 October 2008. There have been criticisms that the changes will cause many people to drop their private health insurance, causing a further burden on the public hospital system, and a rise in premiums for those who stay with the private system. Other commentators believe the effect will be minimal.
Private Health Insurance Rebate: The government subsidises the premiums for all private health insurance cover, including hospital and ancillary (extras), by 10%, 20% or 30%, depending on age. The Rudd Government announced in May 2009 that as of July 2010, the Rebate would become means-tested, and offered on a sliding scale. While this move (which would have required legislation) was defeated in the Senate at the time, in early 2011 the Gillard Government announced plans to reintroduce the legislation after the Opposition loses the balance of power in the Senate. The ALP and Greens have long been against the rebate, referring to it as "middle-class welfare".
Canada
Main article: Health care in Canada
Health care is mainly a constitutional, provincial government responsibility in Canada (the main exceptions being federal government responsibility for services provided to aboriginal peoples covered by treaties, the Royal Canadian Mounted Police, the armed forces, and members of parliament). Consequently, each province administers its own health insurance program. The federal government influences health insurance by virtue of its fiscal powers – it transfers cash and tax points to the provinces to help cover the costs of the universal health insurance programs. Under the Canada Health Act, the federal government mandates and enforces the requirement that all people have free access to what are termed "medically necessary services," defined primarily as care delivered by physicians or in hospitals, and the nursing component of long term residential care. If provinces allow doctors or institutions to charge patients for medically necessary services, the federal government reduces its payments to the provinces by the amount of the prohibited charges. Collectively, the public provincial health insurance systems in Canada are frequently referred to as Medicare. This public insurance is tax-funded out of general government revenues, although British Columbia and Ontario levy a mandatory premium with flat rates for individuals and families to generate additional revenues – in essence a surtax. Private health insurance is allowed, but in six provincial governments only for services that the public health plans do not cover, for example, semi-private or private rooms in hospitals and prescription drug plans. Four provinces allow insurance for services also mandated by the Canada Health Act, but in practice there is no market for it. All Canadians are free to use private insurance for elective medical services such as laser vision correction surgery, cosmetic surgery, and other non-basic medical procedures. Some 65% of Canadians have some form of supplementary private health insurance; many of them receive it through their employers. Private-sector services not paid for by the government account for nearly 30 percent of total health care spending.

In 2005, the Supreme Court of Canada ruled, in Chaoulli v. Quebec, that the province's prohibition on private insurance for health care already insured by the provincial plan violated the Quebec Charter of Rights and Freedoms, and in particular the sections dealing with the right to life and security, if there were unacceptably long wait times for treatment, as was alleged in this case. The ruling has not changed the overall pattern of health insurance across Canada but has spurred on attempts to tackle the core issues of supply and demand and the impact of wait times.

China
Main articles: Healthcare reform in the People's Republic of China and Pharmaceutical industry in the People's Republic of China
France
Main article: Health care in France
The national system of health insurance was instituted in 1945, just after the end of the Second World War. It was a compromise between Gaullist and Communist representatives in the French parliament. The Conservative Gaullists were opposed to a state-run healthcare system, while the Communists were supportive of a complete nationalisation of health care along a British Beveridge model.

The resulting programme is profession-based: all people working are required to pay a portion of their income to a not-for-profit health insurance fund, which mutualises the risk of illness, and which reimburses medical expenses at varying rates. Children and spouses of insured people are eligible for benefits, as well. Each fund is free to manage its own budget, and used to reimburse medical expenses at the rate it saw fit, however following a number of reforms in recent years, the majority of funds provide the same level of reimbursement and benefits.

The government has two responsibilities in this system.

The first government responsibility is the fixing of the rate at which medical expenses should be negotiated, and it does so in two ways: The Ministry of Health directly negotiates prices of medicine with the manufacturers, based on the average price of sale observed in neighboring countries. A board of doctors and experts decides if the medicine provides a valuable enough medical benefit to be reimbursed (note that most medicine is reimbursed, including homeopathy). In parallel, the government fixes the reimbursement rate for medical services: this means that a doctor is free to charge the fee that he wishes for a consultation or an examination, but the social security system will only reimburse it at a pre-set rate. These tariffs are set annually through negotiation with doctors' representative organisations.
The second government responsibility is oversight of the health-insurance funds, to ensure that they are correctly managing the sums they receive, and to ensure oversight of the public hospital network.
Today, this system is more or less intact. All citizens and legal foreign residents of France are covered by one of these mandatory programs, which continue to be funded by worker participation. However, since 1945, a number of major changes have been introduced. Firstly, the different health-care funds (there are five: General, Independent, Agricultural, Student, Public Servants) now all reimburse at the same rate. Secondly, since 2000, the government now provides health care to those who are not covered by a mandatory regime (those who have never worked and who are not students, meaning the very rich or the very poor). This regime, unlike the worker-financed ones, is financed via general taxation and reimburses at a higher rate than the profession-based system for those who cannot afford to make up the difference. Finally, to counter the rise in health-care costs, the government has installed two plans, (in 2004 and 2006), which require insured people to declare a referring doctor in order to be fully reimbursed for specialist visits, and which installed a mandatory co-pay of 1 € (about $1.45) for a doctor visit, 0,50 € (about 80¢) for each box of medicine prescribed, and a fee of 16–18 € ($20–25) per day for hospital stays and for expensive procedures.

An important element of the French insurance system is solidarity: the more ill a person becomes, the less the person pays. This means that for people with serious or chronic illnesses, the insurance system reimburses them 100% of expenses, and waives their co-pay charges.

Finally, for fees that the mandatory system does not cover, there is a large range of private complementary insurance plans available. The market for these programs is very competitive, and often subsidised by the employer, which means that premiums are usually modest. 85% of French people benefit from complementary private health insurance.

Germany
Main article: Healthcare in Germany
Germany has the world's oldest national social health insurance system, with origins dating back to Otto von Bismarck's Sickness Insurance Law of 1883.

Currently 85% of the population is covered by a basic health insurance plan provided by statute, which provides a standard level of coverage. The remainder opt for private health insurance[citation needed], which frequently offers additional benefits. According to the World Health Organization, Germany's health care system was 77% government-funded and 23% privately funded as of 2004.

The government partially reimburses the costs for low-wage workers, whose premiums are capped at a predetermined value. Higher wage workers pay a premium based on their salary. They may also opt for private insurance, which is generally more expensive, but whose price may vary based on the individual's health status.

Reimbursement is on a fee-for-service basis, but the number of physicians allowed to accept Statutory Health Insurance in a given locale is regulated by the government and professional societies.

Co payments were introduced in the 1980s in an attempt to prevent over utilization. The average length of hospital stay in Germany has decreased in recent years from 14 days to 9 days, still considerably longer than average stays in the United States (5 to 6 days). Part of the difference is that the chief consideration for hospital reimbursement is the number of hospital days as opposed to procedures or diagnosis. Drug costs have increased substantially, rising nearly 60% from 1991 through 2005. Despite attempts to contain costs, overall health care expenditures rose to 10.7% of GDP in 2005, comparable to other western European nations, but substantially less than that spent in the U.S. (nearly 16% of GDP).

Insurance systems[edit]
Germans are offered three kinds of social security insurance dealing with the physical status of a person and which are co-financed by employer and employee: health insurance, accident insurance, and long-term care insurance.

Germany has a universal multi-payer system with two main types of health insurance: law enforced health insurance (or public health insurance) (Gesetzliche Krankenversicherung (GKV)) and private insurance (Private Krankenversicherung (PKV)). Both systems struggle with the increasing cost of medical treatment and the changing demography. About 87.5% of the persons with health insurance are members of the public system, while 12.5% are covered by private insurance (as of 2006).[28] There are many differences between the public health insurance and private insurance. In general the benefits and costs in the private insurance are better for young people without family. There are hard salary requirements to join the private insurance because it is getting more expensive advanced in years.

Statutory health insurance/Gesetzliche Krankenversicherung (GKV)[edit]
The statutory health insurance (est. in 1883) is part of the German social insurance system, together with the statutory accident insurance (est. 1883), the statutory old age and disability insurance (est. in 1889), the unemployment insurance (est. in 1927) and the long term care insurance (est. in 1995).[citation needed]

Since 2009, health insurance is mandatory for anyone living in Germany.

The statutory health insurance is a compulsory insurance for employees with a yearly income below €54.900 (in 2015, adjusted annually) and others.

History[edit]
With the 'Imperial Bill of 15 June 1883' and its update from 10 April 1892 the health insurance bill was created, which introduced compulsory health insurance for workers. Austria followed Germany in 1888, Hungary in 1891 and Switzerland in 1911.

On 29 April 1869 the county health insurance ill[clarification needed] in Bavaria created the first law that introduced and regulated health insurance for low income earners. It was limited to individuals with an income less than 2000 Mark per year and guaranteed the insured person a 60% minimum income during sickness.

Function
Function of the statutory health insurance according to § 1 SGB V is to preserve, recreate or improve health of the insured person. According to § 27 SGB V this includes to "subdue the afflictions of illness".

All insured fundamentally have the same entitlement for benefits. The scope of benefits is regulated in SGB V ("social insurance bill five") and limited by § 1 SGB V. Benefits have to be adequate, appropriate and economic and shall not exceed the necessary for the insured.
Additional benefits can only be granted based on particular regulations based on formal law. These are e.g. additional service for the prevention of sickness, care at home, household support, rehabilitation etc.

Based on the principle of solidarity and compulsory membership, the calculation of fees differs from private health insurance in that it does not depend on personal health or health criteria like age or sex, but is connected to one's personal income by a fixed percentage. The aim is to cover the risk of high cost from illness that an individual can not bear alone.[citation needed]

Organisation
The German legislature has reduced the number of public health insurance organisations from 1209 in 1991 down to 123 in 2015.

The public health insurance organisations (Krankenkassen) are the Ersatzkassen (EK), Allgemeine Ortskrankenkassen (AOK), Betriebskrankenkassen (BKK), Innungskrankenkassen (IKK), Knappschaft (KBS), and Landwirtschaftliche Krankenkasse (LKK).

As long as a person has the right to choose his or her health insurance, he or she can join any insurance that is willing to include the individual.

Mortgage life insurance

Mortgage life insurance is a form of insurance specifically designed to protect a repayment mortgage. If the policyholder were to die while the mortgage life insurance was in force, the policy would pay out a capital sum that will be just sufficient to repay the outstanding mortgage.

Mortgage life insurance is supposed to protect the borrower's ability to repay the mortgage for the lifetime of the mortgage. This is in contrast to Private mortgage insurance, which is meant to protect the lender against the risk of default on the part of the borrower.

The Mechanics

When the insurance commences, the value of the insurance coverage must equal the capital outstanding on the repayment mortgage and the policy’s termination date must be the same as the date scheduled for the final payment on the repayment mortgage. The insurance company then calculates the annual rate at which the insurance coverage should decrease in order to mirror the value of the capital outstanding on the repayment mortgage. Even if the client is behind on repayments, the insurance will normally adhere to its original schedule and will not keep up with the outstanding debt.

Some mortgage life insurance policies will also pay out if the policyholder is diagnosed with a terminal illness from which the policyholder is expected to die within 12 months of diagnosis. Insurance companies sometimes add other features into their mortgage life insurance policies to reflect conditions in their country’s domestic insurance market and their domestic tax regulations.

The Controversy

Based on the mechanics of the product, mortgage life insurance is a financial product which paradoxically declines in value as the client-borrower pays more premium to the insurer. In many cases, traditional life insurance (whether term or permanent) can offer a better level of protection for considerably smaller premiums.

The biggest advantage of traditional life insurance over mortgage life insurance is that the former maintains its face value throughout the lifetime of the policy, whereas the latter promises to pay out an amount equal to the client's outstanding mortgage debt at any point in time, which is inherently a decreasing sum. Hence, mortgage life insurance is extremely profitable for lenders and/or insurers and equally disadvantageous to borrowers.

In addition, lending banks often incentivise borrowers to purchase mortgage life insurance in addition to their new mortgage by means that are on the verge of tied selling practices. Tied selling of a product of self or of an affiliated party, however, is illegal in most jurisdictions. In Canada, for example, this practice is explicitly forbidden by Section 459.1 of the Bank Act (1991).

Finally, mortgage life insurance is not required by law. It is up to the client-borrower whether he or she will opt to protect his or her property investment by an insurance product or not. Similarly, the choice of insurer is completely unrestrained as well.

Because of these suboptimal qualities of mortgage life insurance, the product has been subject to sharp criticism by financial experts and by the media across North America for over a decade. This has arguably led to fewer banks actively advertising this product in the recent years, although many still keep it in their portfolios. However, many critics fail to consider that in many cases where term life insurance is denied for health reasons, mortgage life insurance is still available. As such, mortgage life insurance can cover the biggest expense left by a deceased breadwinner - i.e. housing costs. Thus, it is simplistic to dismiss it out of hand as disadvantageous to borrowers.

Private Mortgage Insurance

The term Mortgage insurance may in some contexts refer to Private mortgage insurance (PMI), also known as Lenders mortgage insurance. Private mortgage insurance protects the lender instead of the borrower, although its premiums are payable by the borrower. This type of insurance is compulsory in certain jurisdictions for mortgages started with low down payments.

In the United States, subject to Homeowners Protection Act of 1998, a borrower who provides less than 20% down payment up front may be required to pay for private mortgage insurance until the outstanding mortgage is less than 80% of the value of the property

Mortgage insurance

Mortgage Insurance (also known as mortgage guarantee and home-loan insurance) is an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan. Mortgage insurance can be either public or private depending upon the insurer. The policy is also known as a mortgage indemnity guarantee (MIG), particularly in the UK.



Australia

In Australia, borrowers must pay Lenders Mortgage Insurance (LMI) for home loans over 80% of the purchase price.

Singapore

In Singapore, it is mandatory for owners of HDB flats to have a mortgage insurance if they are using the balance in their Central Provident Fund (CPF) accounts to pay for the monthly instalment on their mortgage. However, they have the choice of selecting a mortgage insurance administered by the CPF Board or stipulated private insurers.[citation needed]

On the other hand, it is not mandatory for owners of private homes in Singapore to take a mortgage insurance.

United States

Private mortgage insurance

Private mortgage insurance is typically required when down payments are below 20%. Rates can range from 0.32% to 1.20% of the principal of the loan per year based upon loan factors such as the percent of the loan insured, loan-to-value (LTV), fixed or variable, and credit score.[1] The rates may be paid in a single lump sum, annually, monthly, or in some combination of the two (split premiums). In the U.S., payments by the borrower were tax-deductible until 2010.

Borrower-paid private mortgage insurance

BPMI or "Traditional Mortgage Insurance" is a default insurance on mortgage loans provided by private insurance companies and paid for by borrowers. BPMI allows borrowers to obtain a mortgage without having to provide 20% down payment, by covering the lender for the added risk of a high loan-to-value (LTV) mortgage. The US Homeowners Protection Act of 1998 allows for borrowers to request PMI cancellation when the amount owed is reduced to a certain level. The Act requires cancellation of borrower-paid mortgage insurance when a certain date is reached. This date is when the loan is scheduled to reach 78% of the original appraised value or sales price is reached, whichever is less, based on the original amortization schedule for fixed-rate loans and the current amortization schedule for adjustable-rate mortgages. BPMI can, under certain circumstances, be cancelled earlier by the servicer ordering a new appraisal showing that the loan balance is less than 80% of the home's value due to appreciation. This generally requires at least two years of on-time payments. Each investor's LTV requirements for PMI cancellation differ based on the age of the loan and current or original occupancy of the home. While the Act applies only to single family primary residences at closing, the investors Fannie Mae and Freddie Mac allow mortgage servicers to follow the same rules for secondary residences. Investment properties typically require lower LTVs.

There is a growing trend for BPMI to be used with the Fannie Mae 3% downpayment program. In some cases, the Lender is giving the borrower a credit to cover the cost of BPMI.

Lender-paid private mortgage insurance

LPMI is similar to BPMI except that it is paid for by the lender, and the borrower is often unaware of its existence. LPMI is usually a feature of loans that claim not to require Mortgage Insurance for high LTV loans. The cost of the premium is built into the interest rate charged on the loan.

Contracts

As with other insurance, an insurance policy is part of the insurance transaction. In mortgage insurance, a master policy issued to a bank or other mortgage-holding entity (the policyholder) lays out the terms and conditions of the coverage under insurance certificates. The certificates document the particular characteristics and conditions of each individual loan. The master policy includes various conditions including exclusions (conditions for denying coverage), conditions for notification of loans in default, and claims settlement.[2] The contractual provisions in the master policy have received increased scrutiny since the subprime mortgage crisis in the United States. Master policies generally require timely notice of default include provisions on monthly reports, time to file suit limitations, arbitration agreements, and exclusions for negligence, misrepresentation, and other conditions such as pre-existing environmental contaminants. The exclusions sometimes have "incontestability provisions" which limit the ability of the mortgage insurer to deny coverage for misrepresentations attributed to the policyholder if twelve consecutive payments are made, although these incontestability provisions generally don't apply to outright fraud.

Coverage can be rescinded if misrepresentation or fraud exists. In 2009, the United States District Court for the Central District of California determined that mortgage insurance could not be rescinded "poolwide".

History

Mortgage insurance began in the United States in the 1880s, and the first law on it was passed in New York in 1904. The industry grew in response to the 1920s real estate bubble and was "entirely bankrupted" after the Great Depression. By 1933, no private mortgage insurance companies existed.[4]:15 The bankruptcy was related to the industry's involvement in "mortgage pools", an early practice similar to mortgage securitization. The federal government began insuring mortgages in 1934 through the Federal Housing Administration and Veteran's Administration, but after the Great Depression no private mortgage insurance was authorized in the United States until 1956, when Wisconsin passed a law allowing the first post-Depression insurer, Mortgage Guaranty Insurance Corporation, to be chartered. This was followed by a California law in 1961 which would become the standard for other states' mortgage insurance laws. Eventually the National Association of Insurance Commissioners created a model law.

Max H. Karl, a Milwaukee lawyer, invented the modern form of private mortgage insurance and helped put home ownership within reach for millions of families. In the 1950s, Mr. Karl became frustrated with the time and paperwork required to obtain a home backed by Federal Government insurance, the only kind available at the time. In 1957, using $250,000 raised from friends and other investors in his hometown of Milwaukee, Mr. Karl founded the Mortgage Guaranty Insurance Corporation (MGIC). Unlike many mortgage insurers who collapsed during the Depression, MGIC would only insure the first 20 percent of loss on a defaulted mortgage, thus limiting its exposure and creating more incentives for savings and loan associations and other lenders to issue loans only to home buyers who could afford them. The guarantee was enough to encourage lenders across the country to issue mortgage loans to buyers whose down payments were less than 20 percent of the home's price. The availability of credit helped fuel the home building boom of the 1960s and 1970s. By the time of Mr. Karl's death in 1995, more than 12 percent of the nation's nearly $4 trillion in home mortgages had private mortgage insurance.

In 1999 the Homeowners Protection Act of 1998 came into effect as a federal law of the United States, which requires automatic termination of mortgage insurance in certain cases for homeowners when the loan-to-value on the home reaches 78%; prior to the law, homeowners had limited recourse to cancel and by one estimate, 250,000 homeowners were paying for unnecessary mortgage insurance. Similar state laws existed in eight states at the time of its passage; in 2000, a lawsuit by Eliot Spitzer resulted in refunds due to mortgage insurers lack of compliance with a 1984 New York state law which required insurers to stop charging homeowners after a certain point. These laws may continue to apply; for example, the New York law provides "broader protection".

For Federal Housing Administration-insured loans, the cancellation requirements may be more difficult.

Still Doubtful About Buying Health Insurance?

Health procurement has been a major cause of concern and area of research for every civilization of the past and of the modern world. The evolution of medicines and courses of treatment is very diverse and dramatic. So much money and effort is being spent on research to find cure of diseases every year. So many medical schools are dedicatedly working to bring out quality medical professionals to solve health issues. With continued efforts and resources we have sufficient know how and infrastructure to cure or control many diseases and thus saving many lives or improving life quality in the process.

But can the common man avail this treatment? Availing medical treatment can be a big financial pain. Many in a country like India die or worsen their health condition because they don't take the required treatment or delay the treatment because of affordability issues. That is why health insurance is very important. Health insurance saves you in your most critical times. It acts as an alternative source of financing your hospital bills (including medicine bills of one month prior to hospitalization and three months post hospitalization).

Even though medical emergencies do not happen frequently to most people one cannot afford to not have health insurance. With rising medical costs one would be exposing oneself to high amount of risk if not well equipped with insurance. Generally the attitude of young people towards health insurance is very lax. Most people ignore when they are told the importance of having health insurance. Some still treat it as an avoidable expense or a luxury. They realize its value when they see some of their relative or friend in that situation where they need health insurance the most.

Health emergencies come uninvited; they can come in the form of a sudden road accident or heart attack. Immediately, a good amount of money has to be arranged to get the patient required treatment. Sometimes, the bill reaches in lacs. That kind of money is not available so readily for most of us. It is high time we understand the value of having health insurance cover for our family. With affordable premiums if we can get protection then why shouldn't we go for it?

Health insurance policies have many tax benefits also, under section 80D of the Income Tax Act, 1961, the premium paid is deductible from the total taxable income upto Rs.15000 for self, spouse and minor child. If individual or spouse is more than 60 years old the deduction available is Rs 20,000. An additional deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 15,000/- if less than 60 years old and Rs 20,000 if parents are more than 60 years old.

When buying health insurance one needs to carefully study the policy. There are some clauses that need special attention, for example, whether the insurer is providing reimbursement of the full room rent of the hospital or upto some limit. Some insurers have a clause like the room rent is paid upto 15% of the total sum insured, over and above it is paid by the policyholder. These technicalities can be discussed with a professional. Also if one compares the insurance plans online on the sites of insurance comparison portals, these points are highlighted in the best interest of the customer. Thus, plan and stay happy. Insurance not only gives us financial aid when needed it also gives us peace.

Obamacare Benefits Everyone, Especially Women!

Healthcare.gov provides a list of about 26 services that are free to women under the Affordable Care Act. Yes, you read it right - under Obamacare, there are 26 preventive services that women can have done for free as long as they are delivered by an in-network provider. I can't possibly discuss every single one here, but I feel that there are a few that are definitely worth mentioning.

These services are broken into two broad categories on hc.gov - services for women who are or who may become pregnant and other preventive services. First, we'll touch on some of the more general benefits available for all women.

General Preventive Services for All Women

Some general preventive services that are covered for women include multiple cancer screenings, including mammograms for breast cancer for women over 40 and cervical cancer screenings for sexually active women. These screenings are always highly unpleasant, so removing the financial burden makes them a little easier to deal with, in my opinion.

Other services include tobacco use screening and interventions, osteoporosis screening depending on age and risk factors, and domestic and interpersonal violence screening and counseling for all women. The list goes on, so I highly recommend visiting healthcare.gov for full explanations of services offered.

ACA Benefits for Women Who Are or May Become Pregnant

First, the ACA requires that FDA approved contraception must be covered by health insurance plans without requiring a copayment. This is personally one of my favorite benefits, because my birth control prescription that my doctor considers to be medically necessary, once cost me $30 a month. I know several ladies who have saved a substantial amount of money thanks to this free preventive services.

I also know several ladies who thrilled that breastfeeding support and counseling from trained providers and access to breastfeeding supplies are free preventive services for women. Also for those who are or who will become pregnant, new health plans must also include maternity coverage. Although not all maternity services will be free, health plans will at least help cover costs associated with pregnancy. A big Obamacare WIN!

Multiple other services are available at no charge, including folic acid supplements for women who may become pregnant, expanded tobacco counseling and intervention for pregnant women who are tobacco users. Again, the complete list, along with more detailed information, is available at healthcare.gov.

If you are a woman reading this article and have an ACA-compliant health plan, I suggest having a discussion with your doctor to take advantage of the appropriate services that are available to you. If you are a man reading this, please pass this information along to all the women in your life. These are benefits that all women should be taking advantage of!

A Guide to Travel Insurance

A holiday to an exotic destination is something we all look forward to. What do you do when things go wrong? It is important to be prepared. And prepare you will, when you go through this handy guide on travel insurance that is packed with helpful tips to ensure that your journey is a rewarding one!

Travel insurance is considered an important element for it helps cover essential medical expenses and financial losses when travelling. Some of the risks that travel insurance covers include sickness, medical consultations, missed flights, accidents, baggage loss, cancellation and the like. Specific travel insurance providers will also cover certain adventure sports such as scuba and skiing, a kidnap cover and supplier default at additional costs. There are two common types of travel insurance policies that can be arranged - a "single" trip - for one trip of a specific duration or a "multi-trip" - a policy wherein you are covered for multiple trips within a specified timeframe.

When scouting for travel insurance, it is recommended that you check for different policies that are available online. Check with the provider to see if your insurance policy is valid overseas. Comparing deals that are available with different providers is highly advisable. Choose a provider who has a customized deal available. Consider supplemental insurance if needed. Be honest and notify them of pre-existing medical conditions, specific risks associated with your trip and your requirements. This will ensure that your claim is accepted later. Go through the fine print. Without doubt, going through the minor details is absolutely essential.

While making a claim, ensure you have all documentation in place. Talk to the insurance provider who will provide clear instructions on the procedure to be followed. A dedicated claims assistant and an adjuster will usually take care of your claim. There are different forms for - Trip cancellation, medical issues, personal liability, baggage loss and travel delay, so being thorough helps. Keep copies of the claim form as well all travel-related documentation safely. Do make it a point to retain all receipts and an itemized report showing a clear break-down of all expenses incurred.

Keep your insurance provider's contact information such as contact centre number(s)/hotline and e-mail handy. Confirm if you can access your policy documentation online. Make sure that you send out copies of incident reports, if applicable. A claim made will usually involve a claim reference number. Quote this number in all correspondence for fast processing. The turnaround time for a claim filed is about four to six weeks. In certain cases, it might take longer if there is extensive research involved. Depending upon the nature of the claim, additional notes and papers maybe called for. Make sure your application is complete in all respects. An incomplete form is likely to be rejected. Do not withhold information pertaining to household or any other insurance cover that you may have. Check with your provider if there is unnecessary delay. Do note that in the case of your claim getting rejected, you have every right to appeal. Follow up with a financial ombudsman if required.

Travel Insurance - Yes or No

Most people (and governments) will advise travelers to purchase travel insurance, especially when traveling internationally. Our personal insurances (medical and other) do not normally cover us when we are in another country. Taking out appropriate travel insurance will reduce the risk of high costs should something bad happen. Most travel agents will offer some travel insurance and in order to satisfy yourself, you should review the policy.

What Travel insurance will You Need?

Generally, the two largest risks associated with travel are the medical and emergency assistance risks and the risk of altering your travel plans. However most policies will include other items like lost/stolen baggage, loss of travel documents, flight delays or interruption, death insurance, car rental risk, specialist equipment and other items.

When purchasing our tickets for a vacation, we usually look for the "best price" option. However, the "best price' option is often the one that is most expensive to alter. So, if circumstances change, you look to the travel insurance to support you. There are several clauses in insurance policies that detail the circumstances for support. Be aware that in some cases, if you purchase a discounted ticket and circumstances change, and the discounted fare is no longer available, the support from insurance may fall short of the new price. You should always read the clauses relating to cancellation and change as they impact the cost of the premium, particularly the "deeming" phrases."

Cheap policies may be more restrictive

Medical Care and Emergency Assistance are often expensive in foreign places. Most places have hospitals and doctors of varying proficiency. However, they will most likely want payment in advance. Contact your insurer as soon as you can for advice and direction. Should you fall ill on a cruise, for example, and need to be flown to the nearest hospital, the costs will run into the tens of thousands.

Consider the other items listed above, but if you have the opportunity you may be able to reduce the cost of the premium by lowering the insured amounts and even taking up a small excess. That is, you agree to pay the first $100, say of the claim.

Most times we think of what is the best that can happen. In considering insurance, however, it may be better to ask, what is that worst that can happen. This may be the cancellation of the whole trip coupled with the associated cancellation costs or some emergency medical mishap that will require emergency evacuation or local care. Not good thoughts before a vacation of a lifetime, but necessary, especially when considering that travel insurance is not expensive.

All About Travel Insurance And Its Categories

One of the best ways to protect yourself from unexpected occurrences during your travels is to secure travel insurance. Most banks offer this product as a safety net of sorts and a means of helping travellers gain peace of mind throughout their trip.

For those who do not really know about it, travel insurance covers financial losses or medical expenses that you might incur during your domestic or international journey. Typically, this insurance product has five major categories that you might want to know.

- Trip cancellation insurance. You will be covered in case you or your travel companions will have to interrupt, delay or cancel the trip (perhaps due to weather issues, injury or illness, problems with passports or visas, unexpected business conflicts, acts of terrorism, or accidents on the way to the airport).

- Travel medical or Major medical insurance. This provides coverage in the event that the policyholder falls ill or becomes injured during the trip. The difference is that travel medical insurance provides only short-term coverage (from five days up to one year), while major medical insurance is ideal for people who will be travelling between six months and one year or longer.

- Emergency medical evacuation insurance. If you find yourself in a remote rural area or any place where there is limited or no access to the necessary medical facilities, this insurance policy will cover medically necessary evacuation and transportation to the proper facilities.

- Accidental death/flight accident insurance. If such an accidental death or a serious injury due to a flight accident would occur, this insurance policy will pay benefits to the policyholder's surviving beneficiaries.

It's best to evaluate the nature of your trips, your health background and the activities you will be involved in to help you determine if travel insurance will prove to be especially helpful. You may consider, for example, your ability to pay for the full cost of a trip back home in case an emergency takes place and you need to make an unscheduled trip home, or whether you will be able to pay for medical care in case someone in your party with a health condition becomes sick. Factors such as these can help you figure out whether the insurance will prove to be valuable or not. Should you decide to get it, remember to carefully read through the fine print and ask the bank personnel to explain every policy so you can make a fully informed decision.


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