Private Mortgage Insurance Tax Deductible

The private mortgage insurance allows the borrower to acquire a mortgage in which the down payment is less than twenty percent. The borrowers pay the private mortgage out of their pocket. Now, the private mortgage insurance is tax deductible for US residents.


Actually, the mortgage insurance is either government or private. Whether the mortgage insurance is government or private, the mortgage insurance is tax deductible.
To acquire the mortgage insurance is an alternative for piggyback second mortgage. The piggyback second mortgage is plain simply a second mortgage. The borrower acquires another mortgage on top of the first mortgage for down payment.


The tax deductible applies for modest income earners. That means the borrower earns up to $100,000. In case the borrower earns over the $100,000, the borrower can only write off the private mortgage insurance partially.


Additionally, the tax deductible only applies to new mortgage. The mortgage financing must have happen in the calendar year 2007. Unless the borrower made a mortgage refinancing for the mortgage on or after the calendar year 2007, the tax deductible will not be allowed.
This is good news to the millions of Americans. Millions of Americans pays for the mortgage insurance. The mortgage insurance only cancels out when the home equity or total amount paid goes over twenty percent of the principal amount.


More importantly, the mortgage insurance will be made affordable with this turn of event.
Like the mortgage interest tax deduction, the mortgage insurance tax deduction benefits millions of American. Now, the borrowers or home owners have a choice between mortgage interests of second mortgage or mortgage insurance premiums as tax deduction.

American Liberal Political Philosophy

America has always had two dominant ideologies, conservatism and liberalism. The differences between them are probably not as deep as you think. In two articles, I present the classic definitions of conservatism and liberalism. Take a look before you sink back into your polarized conservative or liberal mold; you may find some surprises.


LIBERALISM DEFINED
The concept of liberty is integral to the liberal concept. There are, perhaps, two constant hallmarks of the liberal tradition of liberty:


1. John Stuart Mill argued in "On Liberty" in 1859 that it is the burden of those who want to limit liberty with any restriction or prohibition to prove their case. Otherwise, the presumption favors liberty. This is especially true of those who would limit liberty by coercion. Liberals naturally question whether political authority and law are justified. Think of the popular slogan, "Question all authority."


2. Under this presumption, Thomas Hobbes, John Locke, Jean-Jacques Rousseau, and Immanuel Kant maintained that humanity is a state of nature in which people are free and equal; any limitation of this freedom and equality must be justified


3. Since the liberal philosophy holds that all people are free and equal in this state of nature, government must protect the liberty of all citizens equally: the law must be applied equally to all.


Some say the most important idea of liberalism is the protection of individual liberty. However, problems can emerge when economic freedom and social justice come into conflict.


CLASSICAL LIBERALISM
Liberalism values individual rights over traditional values. Personal rights and freedom are valued over state or governmental power, which can only be achieved by the state or government. Liberals, under this classical definition, advocate a free market economy without government intervention; they tend to see government as a necessary evil, whose primary responsibility is to protect people's rights and freedom; this belief necessarily makes government more active to achieve these goals, than conservative philosophy. Classical liberalism supports the belief that the only true freedom is freedom from coercion.


A division in liberal philosophy occurs over private property and market order. For classical liberals, liberty and private property are inseparable.


Classical liberals insist that an economic system must be based on private property which allows individuals to employ their labor and capital as they see fit. A market order based on private property secures freedom. People must be free to make contracts and to sell their labor, free to save their income and invest it as they see fit, and free to run enterprises when they have obtained the capital; without this ability people are not really free.


Based on the above, classical liberals believe that private property is the only effective means of protection of liberty. The dispersion of power that results from a free market economy based on private property protects the liberty of subjects against encroachments by the state.


The classical liberal tradition was centrally concerned with bettering the lot of the working class. However, the goal was to make the poor richer, not the rich poorer; classical liberals reject the redistribution of wealth as a legitimate aim of government.


MODERN LIBERALISM
Today, liberalism is generally viewed as supporting a wider social and economic role for government, counterbalanced by stronger guarantees of civil liberties. Also known as 'new', 'revisionist', 'social justice', or 'welfare state', modern liberalism challenges the connection between personal liberty and a private property based market order:


1. In the late nineteenth and early twentieth centuries, the free market appeared unable to sustain prosperity. John Maynard Keynes, in "The General Theory of Employment, Interest and Money" argued that the free market eventually gets stuck in high unemployment.


2. As the modern liberals lost faith in the market, they looked to government to supervise economic life. This reevaluation, to some extent, was in reaction to many democracies developing and the decline of empire in Europe following World War I.


3. Another fundamental development was a growing distrust of property rights, being viewed as generating power in the hands of some, at the expense of the working class; liberals became especially sensitive to property rights that are taken at the expense of any another group.


Another variation of liberal philosophy occurred in the last century: American philosopher John Rawls (1921 - 2002), in his "difference principle," stated it is not enough that an individual is treated equally under the law; all must have the same opportunities in life. This is an altogether different concept than preventing government from treating a group or individual differently under the law than another; this puts government in a much more active role, that of providing the same opportunities to all people.


FRANKLIN D. ROOSEVELT
Franklin D. Roosevelt is considered by many as the founder of modern liberalism in America, in conjunction with American Psychologist John Dewey and British Economist John Maynard Keynes. He then led the United States in the creation of a more elaborate federal government to act as the bulwark of individual liberty, and a new (reformed) capitalism that protected its citizens against perceived excesses.


Some argue that Roosevelt's liberal policies led to an end of the depression, while others argue that they lengthened the depression and it was only World War II that lifted the United States out of the depression. FDR was certainly a controversial figure.


Regardless of his critics, FDR had such a profound impact on American politics, Republicans are still fighting some of FDR's policies 60 years after his death. If his distant cousin Theodore Roosevelt had thrust America into the international spotlight with the Spanish-American War, FDR made America a major player in world affairs with efforts to bolster Europe against Hitler, embargo against Japan, and summit meetings with Churchill and Stalin. America went from isolationism to a position as a leader of the world.

Disability Insurance 02 - Disability Covered by Government Pension Plan

As we mentioned in the previous article, most working people are covered under government insurance plan. In this article, we will discuss how government pension plan covers in case of disability of working people. These plans provide death benefits, income for surviving spouses and dependent children as well as disability income benefits for qualified member.


In order to receive the disability income from government pension plan, working people must
1.Be disabled, according to the definition of disability contained in the Government pension legislation.


2. Have contributed to government either
a) In two of the last three years or
b) Five of the last 10 years


3. Be under 65 years old


4. Not have received a government retirement pension for longer than 12 months.


The disability must be a physical or mental impairment that is both severe and prolonged:
Severe means the inability to pursue any substantially gainful employment and prolonged means that such disability is likely to be of indefinite duration or is likely to result in death.
Benefits begin after a three-month waiting period. They consist of a flat amount plus an earnings related amount, which equals 75% of the contributor's retirement pension. Also an addition flat amount is paid for each dependent child. Disability benefits are payable monthly and the amounts are indexed to go up each year according to increases in the Consumer Price Index.


This is payable only until age 65 or prior death or recovery. At age 65 the disability pension is replaced by the retirement pension.

You Can Get a Cheap Health Insurance Plan Now Or Get Forced Into a Government Plan Later

As you may know, the health care reform bill has dominated the news lately. With the successful passage of the new bill, all Americans will have access to a cheap health insurance plan. The millions of uninsured Americans will now have insurance and have access to quality health care. In 2014, there will be state plans available that will be subsidized by the government. If you had difficulty finding a cheap health insurance plan, you will now have an opportunity to have insurance. However, like most legislation, there are many people opposed to this bill and for good reason.


Yes, many American will have access to affordable health care but this bill requires ALL Americans to have health coverage or face a fine. Yes, you will be fined for not having health care. Although there are many people who are uninsured due to cost, there are some people uninsured due to choice. There are people who rather not pay the extra cost of insurance although they may be able to afford a cheap health insurance plan. Many citizens believe it is their personal right whether they should have health coverage and the government should not be able to force them into a plan. If you don't find a cheap health insurance plan, the government will fine you every year.


There are groups of people who can't afford the extra expense of health coverage. Especially with today's economic condition, a lot of household budgets are pushed to the limit. In 2014, many households will be saddled with the expense of a cheap health insurance or the costs associated with not being insured. This can be a huge expense if you are unemployed or self employed and don't have the luxury of being enroll in your company's group plan. There is also the unknown of what type of coverage is included in the state plan. As of now, we don't know if the government provided plan would provide adequate coverage.


The best way to avoid being forced into a plan or paying fines is to start looking for a cheap health insurance plan now. By starting now, you have enough time to educate yourself on various plans and their costs. A good place to start is to search online for health insurance. You can search under "health insurance" and get plenty of results. You will get results from national and local providers. You should research all of them to be sure you are getting the best rate and coverage. All plans are not the same, so be sure you are comparing similar plans. Plans with higher deductibles are cheaper than ones with lower deductibles.


The health care bill will be put in place in a few short years. If you're not paying for coverage now, it's inevitable that you will pay one way or another; whether it is through fines or a new health plan. Start your research for a cheap health insurance plan now before you are forced into a state. If you wait until the last minute, you might find yourself settling for a more expensive plan with less coverage.

Advantages of Government Run Healthcare

Having a universal, or government regulated system would offer a plethora of beneficial aspects of quality health care for the American people. First and foremost, improving the basic system through the offering equal, quality healthcare for everyone is an obvious advantage.


The current burden laden on the average citizen to come up with money for health insurance premiums, out-of-pocket costs, prescriptions and co-payments is ridiculous. It has become a hardship to simply afford to go to the doctor's office for a check-up, let alone having to deal with the high costs of hospital visits and dealing with chronic conditions.


A second advantage to a government run plan involves the regulation of insurance companies. Health insurance companies' over-charge consumers deny coverage for chronic conditions and medical testing, hike up premiums and reject consumers due to pre-existing medical conditions. Government regulated health insurance would force insurance companies to be accountable for these infractions, alone with guaranteeing health care to everyone, especially children and those with pre-existing conditions.


A third benefit of government health care is eliminating the need for competition, because there would be just one health care administration. This abolishes processing multiple claims, dispensing insurance forms, negotiating contracts and weeding through the sea of insurance regulations. This allows doctors and medical professionals ample time to actual focus on the treatment of patients and healing rather than wasted concentration of unnecessary systems of insurance procedure, which is all aimed at saving big businesses money instead of the consumer.


Allowing individuals to receive guaranteed medical services should be a benefit provided to everyone, regardless of economic standing. Under a unified health care, more Americans would have healthcare, shrinking overall administrative costs in the long run.

Disparate Types Of Government Health Insurance

Health insurance coverage is necessary and has become an integral part of one's lifestyle. Like any other insurance, health insurance is basically an arrangement of some kind wherein a premium is paid by the insured and in return, the insurer will cover the insured's medical expenses. Knowing how medical costs have skyrocketed, getting a health insurance is a wonderful step.


Unlike some undeveloped countries, 85% of the United States is covered by insurance. People acquire health insurance in different ways like through their employer, organization or union, and individually on their own. However, group health insurance is a lot cheaper compared to individual health insurance. Aside from any of these, government health insurance is also available.


When you get laid off from work, or hurt during working hours, do you have any idea whom to contact? Can you tell the difference between Federal Disability and State Disability? Medical insurance can be very complicated. Full knowledge of your insurance and what kind you are getting is extremely important. You should know the kind of medical health insurance you have and what benefits it offers.


It may sound absurd but it happens that some people are not well informed of what government health insurance they are getting. Do not be among those who just realized what kind they are getting only when they were confronted with the situation. Unfortunately then, they realized what coverage of their health insurance not covered.


There are quite numbers of government health insurance. Each is categorized according to the purpose and causes it serves. When a person is laid off from work, he or she qualifies for unemployment insurance. While those who cannot work due to some illness may get a State Disability insurance. And those who were not able to return to their jobs and were jobless for a year or less, they can avail of the Federal Disability insurance. Those who are permanently disabled may acquire Medicare Insurance, but this one is a case-to-case basis.


The distinction between State and Federal Disabilities insurance has not been fully comprehended yet by many. It is still an existing confusion differentiating the two. Realistically, there are consumers who are lost in the medical jargon, and complications that some government agencies are throwing.


You may be wondering what will happen to your medical insurance when you return to work. Do not assume your benefits are closed. These types of government health insurance may change due to several problems. Always inform the Social Security office before you either stop or start any government health insurance plans.

Government Help on Health Insurance - Lower Costs

Health insurance costs have been on the rise for a very long time now. Health insurance plans are getting out of reach for many middle class families to afford. The biggest problem with this increase is that salaries have not risen nearly as fast. The only way most families can afford rates like this is for both parents to work. However this just causes more visits to the doctor's office, because most of the times the kids have to be put in day care.


If you have kids in day care or know someone that has kids in day care, then you know they are much more likely to get sick than kids that are not in day care. The reason kids get sick more often in day care is that they are around a bunch of kids that they can catch an illness from. Many people have tried to develop new ways to lower health insurance costs, but they have not worked very well so far. I believe that the only way that health insurance costs can be lowered is with the help of the federal government.


I think the largest problem with health insurance costs today is the higher insurance costs that hospitals must pay for malpractice insurance. The burden of these larger costs is then placed on the patients that visit the hospital. The malpractice insurance costs are high because of the many frivolous lawsuits that are filed every year in America.


I believe that the federal government needs to get involved to place limits on the amount of money that can be won in these lawsuits, because this will slow down people who might want to sue for no reason. In turn this will allow malpractice insurance costs to be lowered, and also allow health insurance costs to go down as well. I do not think that these things will happen on there own, so I believe the only way health insurance costs will become more reasonable is if the federal government gets involved.

Obama's Health Insurance Plan - How to Use Government Money to Find Cheap Health Insurance Providers

The Obama Administration has expressed interest in making a health insurance plan and policy universally available for consumers free of charge, however this could create serious potential problems for our current budget deficit and make interest rates sky rocket for loans. In this article I will take as a given that the Obama Administration is going to make a health insurance plan universally available and explain how to use government money to find cheap health insurance policies.


It is important to understand that even though the Obama Administration is positioned to make a health insurance policy universal and free for all American citizens we will all be paying for this one way or another. I say this because in order to make insurance for health free for all citizens we will undoubtedly be paying higher taxes. Thus, since we will all be paying higher taxes I feel it is our duty to find the health care insurance provider that can quote us for the lowest price. If everyone does their part to find the health care insurance company that is willing to offer the lowest quotes then we can decrease the tax burden for American citizens.


So the question stands. How do you go about using government money to find cheap health insurance providers when Obama passes this plan? It is simple; find a website that offers multiple quotes from multiple companies. This will ensure that you are both doing your part to make sure taxes don't rise too much and you are finding a respected and reputable health care insurance agent in your area.


So, in summary; if the Obama Administration does indeed pass the bill that will make health care insurance universally available then every American citizen should do their part to lessen the tax burden by comparing health care insurance quotes to find the cheapest policy. Taxes are sure to rise if a health insurance plan is free across the board and you the consumer have the ability to lessen the tax burden for all citizens!


Ryan Golembiewski is a seasoned financial expert in the health insurance industry. He spent his collegiate career studying Economics and Statistics at The Ohio State University. He has a wealth of experience working with health insurance quotes websites and certainly recommends using a health insurance quotes comparison site prior to signing up for a policy.

Does the Government Think You Have a Cadillac Insurance Plan?

The details of the Senate version of health care reform are murky at best. Now that they have cut off debate in a 1:00 am vote, the details should start to trickle out to the American people. One way that the Senate bill is financed is through the taxing of so-called Cadillac insurance plans. The exact details are unknown, but the Baucus version of the bill has been out for awhile.


The Baucus health care bill version of Obamacare relies on several funding mechanisms. One of those mechanisms is a tax on Cadillac insurance plan. To many Americans, this means some plan that only rich fat cat CEOs or billionaires can have. However, many Americans that have employer based health care are deemed Cadillac insurance plans by the Baucus health care bill. This leaves many Americans asking, what is a cadillac insurance plan.


So how do you know if you are in a Cadillac insurance plan? The Baucus health care bill defines a Cadillac plan as insurance coverage that costs $8,000 per year for individuals and $21,000 per year for family coverage. The current bill in the Senate ups this to $23,000.


So how do you calculate the total cost of your insurance plan?


Many employer based plans have the employer covering between 60 and 80 percent of the costs. To calculate the costs, take your monthly cost for health, dental, and vision coverage, divide it by your percentage, and add your total monthly cost to that number. You then have to multiply that by 12 to get the total yearly cost.


For example, if you pay $350 per month for health coverage and your employer covers 75%, take 350 and divide it by.25 which comes to $1,400. This is what your employer pays per month. Add your $350 to that which comes to $1,750. Multiply that by 12 resulting in $21,000. You also need to include participation in FSAs or HSAs when determining your total cost of the plan.


The end result is that many Americans will see the cost of their health insurance go up under the Baucus health care bill as they currently participate in Cadillac insurance plans. This would seem to be counter to the goal of the bill to make health care insurance more affordable.

Buy A Home Or Rent? What The Government, Realtors, Lender's and Insurance Companies Won't Tell You!

Should you rent or should you buy a home? That is obviously a question only you can answer but with all the hype about home ownership and equity appreciation I thought I would offer up a few thoughts contrary to mainstream thinking so carefully crafted and cultivated by our government and real estate industry.


First, a quick overview of some key words: "Real estate" is a derivative from the words "Royal Estate" which was a term used way back in time when the European feudal system was used. You know, when people use to farm the land of the rich landowners and get a small slice of the crops for their efforts? I am not a history buff but you get the idea. And "Mortgage" is a derivative of the word "Morgue" or, in so many fancy words "Debt to death". My understanding is that way back in the old days, the government (composed of wealthy landowners) decided they could make more money by "selling" the land (Royal Estate) to people. How? By providing an interest earning loan to them in the form of a (Morgue-deed). The rich government also decided they could further benefit themselves by "taxing the property" they sold to these poor people. Then, these same rich people decided to make it a law that people had to "insure" these properties to protect the wealthy. So what you have is:


The wealthy people own the land (Royal estate)


The wealthy people convince the poor to buy the property on credit to death (Mortgage)


The wealthy people who held all the money forced the poor to (insure) the real estate (Did I mention the wealthy just so happen to own the insurance companies too?)


The wealthy people who comprise the government then (taxed) the poor slobs that bought into this program!


Real estate = debt to death (30 years) + interest + tax + insurance. Or to look at it another way:


Asset = liability + liability +liability +liability. Now ask yourself is this in the best interest of the poor slobs buying the property or the wealthy landowners? Aha! A new perspective!


But there is more to consider... when you purchase a home you basically lose your ability to relocate quickly because of the obstacles associated with listing the home, finding a qualified buyer, selling, etc. That's good for the government, they get the tax and they know where you are located. Speaking of tax, you can pay off your mortgage and still never really own the home because you will always pay taxes.


How do real estate taxes benefit your bottom line? What do you really get out of insurance? Insurance protects the lender...and it's nice to have IF something were to happen. But statistically it probably won't or the insurance companies wouldn't insure you.


Don't forget the government's ability to take your property away under eminent domain. They just changed that law so the rich who have a better use for your property than you do can steal it from you legally. Which means to me, that a person pays and pays and pays and pays and never really owns their home.


And let's not forget about those catastrophic home repairs like roof, HVAC systems, sewage, etc.


And there is no guarantee that a home will appreciate...all it takes is a massive layoff in a geographical area to wipe out property values.


So the next time you hear the president brag about increasing in" home ownership" in America or the next time you hear about "owning a home is the American dream" you'll have a slightly different perspective.
It's the American dream all right! It's the American dream for the government, the rich, the real estate industry, the mortgage lenders and the insurance companies. But...the little person?


Like I said in the opening paragraph of this article--home ownership is something only you can decide. But does it make sense to rent and invest your money into stock, something that has equally impressive growth potential without all the liabilities, risks and limitations?

Illinois Low Income Government Health Insurance Guide

There are a number of different Illinois low income government health insurance programs that residents of Illinois can take advantage of. Whether you are looking for Illinois low income health insurance for your children, for someone who is disabled, or even if you are looking for an IL low income health insurance plan for yourself or your entire family then there are different options, bother governmental and private, that you should look into.


The state of Illinois is one of the largest states in the United States when speaking about population. Although the state is not very big compared to Texas or California, it houses approximately 12 million people and population has been growing about 3% every 5 years. With this in mind it is important to understand that the need for quality health insurance is a common one in this great state. With the health care costs rising, the state government has been faced with important decisions regarding what to do with families that have no money to afford health care, or families that do have money; but cannon really afford it because they live from paycheck to paycheck. The state of Illinois is one the best states in the nation regarding health insurance for low income families.


The Illinois Department of Health Care and Family Services is a prime place for low income families to find coverage for them or for their children. A program started by the former governor of Illinois, Mr. Rod R. Blagojevich is called Illinois Covered. This program is designed to allow those 1.4 million of uninsured people residing in the state of Illinois to gain health insurance coverage. The program which provides "affordable healthcare for all" was started simply because the governor is tired for waiting for Washington D.C. to come up with answers to the health care crisis that is roaming America in the last decades. The program in whole is divided into different categories depending on eligibility requirements a person needs to have in order to qualify.


One of the programs is called Family Care and its main focus is to provide health care coverage for Illinois people who are below 185% of the poverty line. The governor is trying to get a piece of legislation started in which the eligibility for this plan would go up to families below 400% the poverty line, which would include a larger percentage than those under the program now. What this plan does is offer healthcare coverage to parents living with their children 18 year old or younger and to relatives who are caring for children of those ages. The plan includes doctor visits, dental care, hospital care, emergency services, prescriptions, etc and these services will have small copays of approximately $5. Parents should expect to pay a monthly premium of $15 to $40 depending on the number of family members covered under the plan.


Another program the Illinois government has is called All Kids "Healthcare for kids" and it was started on July 1, 2006. This program is available for children ages 18 and younger, and recently the governor has proposed to cover people up to the age of 21 with this plan. There are a quarter of a million children (approximately 250,000) in the state of Illinois who do not have health insurance coverage. This program is designed to cover kids at an affordable price, and make them eligible to go see a doctor or get surgery when needed. The plan includes services such as doctor visits, hospital stays, prescription drug coverage, vision and dental care, and medical devices such as glasses and asthma inhalers. They rates are affordable and for middle income families the rates will be much lower than those in the private health insurance market.


Health Benefits for Workers with Disabilities coverage is another program in the state of Illinois, and they began providing services for in the year 2002. Families that were once middle class and are now low income families due to the disability of a family member is covered with these health plan as well. After a person is injured, many people fear going back to work because that would mean losing their health insurance coverage and many others just simply cannot afford private health insurance coverage. This program eases the transition from a disability back to work by making sure those people are fully covered with Medicaid. If you are an individual between he ages of 18 and 64 that is disabled and you earn a monthly income of $1,702 per month for individual and $2,282 for a couple you might qualify for this health benefit.


Two other important programs in that the state of Illinois offered that are somewhat linked to each other are Illinois Covered Assist and Illinois Covered Rebate. Illinois Covered Assist is a new program that focuses on primary care and disease management of very low income families, primarily speaking families making less than $10,210 annually for an individual or $13,960 for a family. They will provide access to a medical home through a medical center in the community and prescription drug benefits. On the other hand, Illinois Covered Rebate was designed to help middle income Illinois families to pay for their health insurance premiums. This will pay up to 20% of their premium or up to $1,000 per year.


Although healthcare in the state of Illinois is not perfect and there is still a lot to be done to improve it, the former governor has been doing a great job expanding the benefits so that his programs cover a variety and a high number of people. If you want more information about low income coverage for families in the state, you can contact the Illinois Department of Healthcare and Family Services or a local Illinois health insurance agent or broker.

Flood Insurance - Another Example of Excessive Spending by a Government Agency

How can this be? The short version is that FEMA which is the federal emergency management agency typically pays close to 20% more than it should pay for flood insurance claims. These payments are made to the individual participating insurance companies. Last year that meant close to $350 million in overpayments as reported by the (GAO) Government Accountability Office in expenses to insurance entities that were considered overpayments for their expenses.


The Government Accountability Office says that this is excessive. Over 97% of the national flood policies are in place and are managed by just 87 insurance companies. These 87 companies control roughly 89% of the insurance premium for flood policies in the United States. The government's participation with private insurance companies with regards to flood insurance began in 1983 as a co-op.


As insurance premiums continue to rise especially in the coastal areas, the government is now pressing the private insurance companies to produce ongoing reports comparing their actual expenses in comparison to the 34% the government allocates for every premium dollar in expenses for flood premiums.


This over payment of close to $350 million of budgeted expenses compared to actual expenses is definitely within the radar of the GAO. The GAO also found that claims expenses are adjusted based on the size of the claim. The government has unknowingly incentivized the insurance companies in that the greater the claim the greater the reimbursement. This tends to organically inflate claims to newer and higher levels as the government is paying for damages and not private insurance company. The insurance companies are only adjusting the claims and being reimbursed for their expenses albeit in the form of overpayments.


As is the case in most government programs there is fat and abuse and clearly this over payment of approximately 20% for reimbursed expenses needs to stop.

Government's Effort in Health Insurance to Assist Unemployed

Health is very important for everyone. Maintaining good health is essential even during economy downturn. One of the hard efforts taken by the Federal Government to overcome the effects of financial crisis is to help the citizens, either adults or children, with health insurance coverage and quality medical facilities. Here comes the amendment for Consolidated Omnibus Reconciliation Act of 1986 (COBRA) and Children's Health Insurance Program (CHIP).


The increasing unemployment rate among the nations has caused the loss of valuable health insurance coverage for many people who were previously covered by the group healthcare plan. In response, the Federal Government has enacted new legislation to help the unemployed with COBRA coverage, where the unemployed is able to continue on their employer's group insurance plan for up to 18 months after losing the job.


For a person to be qualified for this program, he or she must have lost his or her job between 1st September 2008 and 31st December 2009. The annual household income must be less than USD 125,000 for an individual and less than USD 250,000 for a family. Under the reauthorized act, the qualified citizens pay 35% of the premium and the government pays the remaining 65%. This assistance could continue for a maximum duration of nine months.


Besides COBRA, another important measure the Federal Government has taken recently is the reauthorization of State Children's Health Insurance Program (SCHIP). This customized program enables children and teenagers under the age of 18 as well as pregnant women to be eligible for receiving health insurance and directly obtaining medical assistance. Under the new law, families can earn up to 300% of the poverty level and they are still qualified for SCHIP. This program is a state administered program. As a result, the eligibility criteria and the benefits for this program may vary from state to state.


The two recent government measures mentioned above are basically meant for citizens who are out of job and out of health insurance coverage. The government assistance is given to support both jobless citizens and their families to overcome their health problems during hard times. If you have been retrenched at the moment, get more detailed information about these measures and apply for it!

Can the Government Cut Average Car Insurance Costs?

In Washington a bipartisan group in Congress has put forward a plan designed to cut Americans' auto-insurance rates by $45 billion a year; an average of $243 per driver. The proposal does that, say sponsors of the Auto Choice Reform Act, by giving drivers nationwide the option of participating in traditional auto insurance or choosing a "no-fault" policy.


"This is a really sensible idea," Senator Joseph Lieberman (Democrat) of Connecticut said during a Senate hearing on the measure last week. "The potential here for savings is enormous." The traditional insurance system allows drivers to sue each other and each other's insurance companies to determine fault and assess damages for "pain and suffering." Change is needed, the bill's sponsors say, because this tort-based system costs consumers too much, clogs up the courts, and funnels huge sums of money away from victims and into the pockets of trial lawyers.


But no-fault insurance is not a new idea - and critics say that in states where it has already been implemented, motorists have seen their premiums rise faster than they would have under the tort-based insurance system. "After nearly 25 years of experimentation with no-fault..., the only conclusion that can be drawn is that this grossly unfair system is an absolute failure," says Harvey Rosenfield, architect of California's Proposition 103, a 1988 ballot initiative that rolled back auto-insurance rates and slapped strict controls on insurance companies doing business in the state.


The bill gives drivers a choice: They can stay in their state's traditional program and retain the right to sue for pain and suffering. Or they can choose a "personal-protection system," in which they trade the right to sue in return for prompt reimbursement of economic losses as outlined in their insurance policy - a system usually referred to as no-fault.


A state could adopt the bill as its own insurance law or exempt itself from the provisions. State officials could also exempt their states if they find the no-fault program would not reduce rates at least 30 percent for people with the personal-protection system. It is this partial preemption of state law that alarms opponents, including some states-rights advocates. While no state would be compelled to adopt the measure, these opponents worry the bill might be only the beginning of federal meddling in an area traditionally reserved for the states.


But supporters believe no-fault is the best way to control ever-rising auto-insurance costs. "The culprits behind the high cost of auto insurance are expensive, excessive pain-and-suffering lawsuits and the rampant fraud and abuse that too often accompany those suits," says House majority leader Dick Armey of Texas, a bill cosponsor in the lower chamber. "Between 1987 and 1994, these forces combined to drive rates up 44 percent - 1-1/2 times the rate of inflation."


Both sides cite studies to back their positions. Bill supporters point to a 1995 report by the California-based Rand Institute for Civil Justice, which shows that individuals suffering less than $5,000 in economic losses often get two to three times the amount of their losses under the conventional insurance system. On the other hand, those with economic damages of more than $100,000 often receive only 9 percent.


But a joint study by Mr. Rosenfield's Proposition 103 Enforcement Project and Public Citizen, a national consumer group founded by Ralph Nader, concludes that no-fault states have the highest average car insurance cost - and their premiums are rising 25 percent faster than in other states.


Financial adviser and author Andrew Tobias, who supports the bill, says no-fault has not been fairly tested. Only Michigan has a true no-fault system that prevents most drivers from suing for pain and suffering, he says. And only Michigan offers unlimited medical benefits and "significant" wage-loss protection. "If this [proposal] is a terrible choice and doesn't save people money, people won't choose it," he says.

FERS - Disability Insurance For Federal Government Employees

It is all too often that I hear Federal Government employees speaking of how great their benefits are because they work for the Federal Government. In some ways they are correct - the Federal government does provide high quality benefits for its employees and in most cases they are very well taken care of. In regard to their group Long-Term Disability insurance however, the Federal Employee Retirement System (FERS) program falls short of their elite reputation.


Traditionally, group Disability insurance will cover 60% of a person's salary up to a maximum monthly benefit of $6,000 - $10,000. If the employer pays the premiums, benefits are received on a taxable basis and will be considered ordinary income. With benefits being taxable, even someone who has group coverage like this can experience a severe shortage of income if they become disabled. When 60% of your salary is provided on a taxable basis, it is the equivalence of having 45-50% coverage. I think it is fair to say that most people cannot survive on 45-50% of their regular income.


The FERS program takes this shortage of coverage even further. It works very similarly in that 60% of your annual income is covered, but only for the first 12 months of a disability claim. After the first 12 months, your benefits will drop to 40% of your income. Once again, I believe it is fair to state that most people cannot survive on 40% of their regular income.


There are many details associated with the FERS Disability insurance program and as a Federal employee you should take the time to fully understand them. If you are serious about protecting your income and the future of your loved ones, you need to understand the coverage you have so that you can obtain an individual policy to cover the gap in your coverage. You can learn more about the specifics of the FERS Disability program by visiting Disability Insurance Resources  and selecting "Disability Insurance for Federal Employees".


Your ability to work and earn an income is your most valuable financial asset. Most things you will need, desire and achieve in life revolve around your income you earn. As a Federal government employee, you have a gap in your Disability coverage and the only way to properly protect your income is by obtaining an individual policy to supplement your group coverage.

High Risk Pool - Government Insurance for You

Beginning July 1, 2010 and ending January 1, 2014, the United States government has created a high risk pool program that all states are able to benefit from. $5 billion dollars has been allotted to go towards the funding of this health insurance option for those Americans who are uninsured. To be eligible for this program there are certain criteria that you must fit into before you can even apply for coverage. First and foremost, you must be a citizen of the United States or in America by permission of the country (lawfully present). Next, you must have been uninsured for six months before you apply for the program. Finally, you must have a pre-existing condition that makes it impossible to purchase private insurance or maintain insurance through your place of work. All of these stipulations may seem unreasonable, but this high risk program has been created for a specific reason.


The great benefit about the high risk pool created by the United States government is that it will be affordable. With the affordable cost, you who have a pre-existing condition will be able to afford this high-quality insurance. All premiums will be standard for the individual states and will not vary too greatly depending your age. However, it is important to understand that this is a temporary fix to a sometimes permanent problem that you are having. Make sure that you take into account that this program will only be available for a few years and then gone.


The Department of Health and Human Services has made this high risk pool effective for all states within America. However, it is the state's duty to choose which of the option they want for their individual state. A state can choose to make a new risk pool, use their current risk pool, join in with another HIPAA carrier or simply do nothing. The state must make a declaration of how they want to take part in the program. However, it is important to note that no matter the choice of the state, if you are and eligible American you can have the chance to take advantage of this risk pool.


Take the time to research how your state is participating in the high risk pool. If you have been uninsured for at least six months and have a pre-existing condition that causes you to be denied for health insurance coverage this could be a great option for you.

Fleet Insurance Company Investigates If Government Fleet Incentives Will Be Enough

The necessary focus on going greener in the midst of our economic challenges makes us as a fleet insurance company pose the question whether the government incentives will be enough?


The UK Government announced at the end of July 2010 that more than 1 million pounds will be made available to fleet managers. This is part of the Infrastructure Grant Programme and is an incentive for switching to electric vehicles or alternative fuels.


This programme will be managed by Cenex, who will manage the programme on behalf of the Department of Transport. All of this is part of the initiative to cut the sector's carbon emissions by 14 per cent over the next ten years.


Cenex is the UK's Centre for Excellence for Low Carbon and Fuel Cell Technologies. Robert Evans, Cenex Chief Executive explained that the costs of installing, recharging and refuelling has been quite off putting to fleet managers when considering the switch.


The funding will be available to businesses of all sizes and the grants can account for as much as 50 per cent of the total cost of installing a new fuel infrastructure.


So what are the criteria to qualify for this funding?


-Grant applications need to be made and accepted before the investment
-Refuelling sites must be open for third party access and be based in the UK
-Dispensing attachments need to comply with industry accepted vehicle health and safety standards
-Grants are awarded after successful assessment and allocation of funding by an independent private sector led board


Who is eligible?


-Companies of all sizes are eligible to apply
-Any private of public sector firm who is interested in installing refuelling or recharging vehicles can apply for a grant
-Companies located outside of the UK may apply once the investments will be carried out in the UK


Plug In Car Grant


Additionally there is the Plug-In Car Grant, as announced by Philip Hammond. From 2011 fleet drivers and private motorists will be entitled to a 'Plug-In Car Grant' of up to 5,000.


To qualify for this grant you need to buy an electric, plug-in hybrid or hydrogen fuel cell car. The vehicles must meet reliability, performance and warranty standards set by the Office for Low Emissions Vehicles (OLEV) in consultation with industry.


Short Term Leasing On The Increase


However the Managing Director of Equalease, Paul Ashton, has announced in August 2010 that the number of fleets which are renewing on a rolling short term basis is increasing. Therefore companies are opting to renew on 3 or 6 month contracts.


Many businesses do not want to enter into either long term lease arrangements or buy new vehicles at a time of such economic uncertainty. Even though there is an additional cost of 20-25% per month, many businesses are opting to pay this in favour of the flexibility it allows to them.

FEGLI - Life Insurance For Federal Government and Postal Workers

Most large companies provide their employees with group life insurance benefits and the Federal government is no different. Traditionally, Federal government employees are eligible to participate in the Federal Employee Group Life Insurance program, also know as FEGLI. This program offers three different forms of benefits: Option A (Standard), Option B (Additional) and Option C (Family). This article will focus on Option B; also know as the supplemental option.


When enrolling in Option B of the FEGLI program, employees are able to elect up to five times their annual income, in life insurance. This can be done in the first 31 days of employment and then again during open enrollment periods, which only seem to occur every few years. If an employee enrolls within the first 31 days of employment, he/she can do so without providing any form of medical information. To the average person this may not mean much, but avoiding medical underwriting can be a very important benefit to someone who would otherwise not qualify for coverage. Regardless of whether you are in excellent health or not-so-good health, you can qualify for Life insurance coverage and pay the same premium as every other participant. Again this is great news for someone who otherwise may not qualify for coverage, but what does this mean for someone who is in average or better than average health?


In order for an insurance company to offer coverage without reviewing medical information, their prices must be adjusted. The pricing for the FEGLI program is designed to increase in five-year age group increments. For example: between ages 35-39, every $1,000 of insurance will cost $0.04 bi-weekly; between ages 45-49, every $1,000 of insurance will cost $0.09 bi-weekly; and between ages 55-59, every $1,000 of insurance will cost $0.28 bi-weekly.  A Federal employee who earns a $100,000 salary and elects the full $500,000 of Option B FEGLI coverage, he/she will go from paying $40/month at age 35 to paying $280/month at age 55 - a fairly steep increase for a relatively short period of time. Again, for someone who would otherwise not be eligible for Life insurance, this is a great deal. However, for someone who can qualify for individual coverage, the price increases are too much to justify staying with the FEGLI program.


It is a shame that most Federal employees do not recognize the inflated prices they pay until around age 50-55. This is where premiums will start to increase exponentially and become a bit more cost prohibitive for many people. The good thing is that even at age 50 or 55, Federal employees who are in standard or better health are able to obtain coverage at lower rates. A 55-year old Federal employee in average health, with $500,000 of FEGLI coverage would pay $280/month and at age 60 would increase to $600/month. The same 55-year old Federal employee in average health can obtain an individual $500,000 Term-life policy for under $200/month without facing an increase at age 60. If he/she is in really good health, coverage could cost as low as $80/month. A savings of $80-$200/month or $960-$2,400/year is certainly something worth evaluating, especially for the long run.


So why wait until age 55 to start saving on your life insurance premiums? The earlier a Federal employee identifies the inflated prices they are paying with the FEGLI program, the sooner they can replace it with an individual life insurance policy and begin saving. A 35-year old in good health can lock into a $500,000, 30-year Term-life policy for approximately $50/month. By the time that 35-year old reaches age 65, he/she will have saved a cumulative amount of approximately $63,000 by maintaining the individual policy instead of the FEGLI coverage.


FEGLI is a great program - it's easy, convenient, and the insurance is through Metropolitan Life, which is a solid insurance company. Financially however, it often just does not make sense. Someone who is in average or better than average health will spend tens of thousands of dollars in excess, by using the FEGLI program for their Life insurance. Don't let this happen to you. Review your options, look into an individual policy and most importantly look toward the future. Perhaps you will not save money this year, but year three alone may save you enough to make up for the first two years. Talk to an insurance broker today and find out how much an individual Term life insurance policy could be saving you.


MR Insurance Consultants is a web based insurance consulting firm that helps consumers obtain Disability insurance and Life insurance over the internet. We provide our clients with personalized quotes and advice to help them obtain the most appropriate and quality coverage for their circumstances.


We have saved many Federal employees and Postal Service workers significant amounts of money by helping them replace their FEGLI coverage with an individual Life insurance policy. If you or someone you know uses the Federal Employee Group Life Insurance (FEGLI) program, have them call us at 800-817-4522 or visit us on the web at FEGLI Life Insurance.

Individual Disability Insurance Benefits For Federal Government Workers

As a Federal Government worker, it is important that you understand the benefits provided to you by the FERS Disability program. A proper understanding will allow you to effectively assess the income protection you have and make an educated decision of whether or not you should obtain individual Disability insurance as a supplement to what you are already provided.


Without going too far into detail, Federal Government workers are provided Disability insurance benefits through the FERS program once they have completed 18 full months of service. For any injury or illness which restricts you from performing your current job and is expected to last beyond one year, you are eligible to receive 60% of your annual salary during the first 12-months of a disability claim and 40% of your annual salary for each year thereafter.


Something that you may not know is that although you are provided 60% and 40% Disability coverage, you may actually receive a substantially smaller benefit than you expect at claim time. Since FERS Disability benefits are primarily paid for by the Federal government, any benefits you receive during a claim are taxable as ordinary income. Due to this taxation of benefits, along with the reduction from 60% to 40% coverage, Federal government workers are faced with a tremendous shortage in income protection. Thus, Federal workers are able to obtain individual Disability insurance as a supplement to their provided coverage.


Similar to how individuals in the private sector purchase individual Disability insurance to supplement their group Disability insurance, Federal government workers can also obtain individual Disability insurance to supplement their FERS Disability benefits. Amongst the many options that are made available for Federal employees, there are some that are more attractive than others.


As you consider purchasing individual Disability insurance, look for two primary characteristics in a policy. The first is to be sure that you are not restricted to which policy provisions and riders can be added to your policy. If you are going to spend money on obtaining individual coverage to properly and effectively protect your income, be sure that you are not restricted on what you can add to your policy. Secondly, be sure that your individual policy benefits will not offset with Social Security disability benefits. Your FERS Disability benefits will already be off-settable with Social Security Disability. It is bad enough that the majority of your FERS benefits may offset with Social Security benefits but again, if you are spending money in order to properly protect your income, you should be sure that you are not paying for Disability insurance that will be reduced as your FERS benefits are already.


Purchasing individual Disability insurance as a means of supplementing the shortage that exists in your FERS Disability coverage is a responsible and intelligent way of effectively protecting your income, your family and your future. Be sure that you work with someone who is familiar with the details associated with FERS Disability benefits and also the individual options available for Federal workers. For more information relating to your FERS benefits, visit Disability benefits for Federal Government workers.


Michael Relvas is a Disability Income Specialist with MR Insurance Consultants, an insurance and financial services firm. Based just outside of Washington DC, Michael has worked with many Federal Government employees to improve their understanding of FERS Disability benefits and also to obtain individual Disability insurance as a supplement to FERS. If you have questions related to FERS Disability insurance and the individual options available to you, call 800-817-4522 or visit us at Disability Income Insurance.

Insurance Jobs a Protective Shield for a Nations Assets

The Insurance sector in India has registered significant growth in the past few years achieving an average annual rate of 20% and total size of around $ 10 Billion. By allowing 26% Foreign Direct Investment the government hoped that through healthy competition peculiar requirements of the customers could be met.


The insurance sector comprises of life and non-life business such as car, marine, accident, medical and fire insurance. The government still holds 78% share of the market with LIC having a formidable advantage whereas in the non-life field, private sector companies both independently as well as joint ventures with foreign insurers account for 20%.


After the government loosened its grip the sector welcomed the participation of both foreign and domestic private players thereby providing an insurance cover to the people and job security too. The entry of private players in the service sector brought with it a big demand for professionals. The job options available to an individual in the insurance sector include agents jobs, advisors jobs, sales jobs for experienced salespeople and financial advice and management to some extent.


The first step for a career in insurance sector is to become an agent or an advisor. Insurance is a matter of solicitation; hence the responsibility of the agent to inform the legalities, process and specific plans to the policy holder is immense. risk management tool, the advisor must always be well equipped to provide best suited solutions to the clients whether individual or corporate. The agent must not forget that he is the authentic source of information and also the face of the company. Therefore, he should try to forge strong ties with the customers following a friendly, confident, enthusiastic and disciplined approach dispelling correct information about the products and services of the company.


The field of non life sector is so vast, one can even specialise in selling health, car and accident policies according to expertise and interest. Here the experience of sales is very helpful and sales jobs are available for those who can avail the opportunity and make a foray in the sector.


Provides a cover or protection against any threat to life. An policy is a financial and legal binding between an insurer and insured. The policy holder is always exposed to many risks including the failure of the product to meet its forecast or delay in services etc. To address such grievances the government established Insurance Regulatory Development Authority. It is the nodal agency to regulate Life and General service sector in India. The knowledge of IRDA guidelines and being web savvy is useful for insurance agents jobs.