Saturday, May 9, 2009

Teen Pregnancy and Parenting:

Myths and Realities

Teen pregnancy has been called an "epidemic" and a national emergency. Stereotypes of teen parents abound: they are said to be uneducated, irresponsible, abusive, immoral, and destined to a life of poverty.

But what do we really know about teenagers who become parents? This article will begin by discussing how teen child bearing became defined as a problem and then examine a recent study to determine what myth is and what fact in our assumptions about teen parents is.

Census data reveal that the number of teenagers becoming pregnant and bearing children has not changed significantly since the Second World War. What have changed are society's norms about marriage and sexual activity.

In 1950, the median age of marriage for men was 22.5 years; for women it was 20. Thus, 50 percent of women were marrying in their teen years and 50 percent were marrying at age 20 or older. By the mid-1980s, this was no longer true: 50 percent of men were not marrying until they were 25 or older, while 50 percent of women were not marrying until they were at least 23.

Similarly, sexual activity outside of marriage has become more common and accepted. During the 1970s, the proportion of teen women who had experienced sex increased from 30 percent in 1971 to 50 percent in 1979. Contraceptive use among teens was also on the rise during the seventies. However, a large proportion of teens reported and continues to report sporadic and ineffective contraceptive practices (Chase-Lansdale & Invokes, 1987). These changes combined with economic and gender role shifts, have created the "problem of teen child bearing."

Of course, real issues do arise when young women choose to bear and rear their children without the personal economic resources or resources from a spouse. Thus far, the government has stepped in to help meet these needs, but ambivalence about allowing the government to take over the responsibilities of the family has caused policymakers to look for other means of addressing this phenomenon. In the meantime, teen pregnancy remains a concern for child welfare.

But is age really the problem? Consider a case scenario. Jan, a 15-year-old, lives with her parents in a small North Carolina town. She becomes pregnant and hides the pregnancy from her family until she is well into her second trimester. While her mother wants her to consider adoption, her father and boyfriend believe this will "scar her for life". In the end, she decides to keep the baby. Jan continues to live at home, but neglect reports begin to filter into the county CPS workers. Is Jan coming to the attention of CPS because her age prevents her from being a good parent, or is there some other problem?

In their 1993 article, Children of Adolescent Mothers: Are They at Risk for Abuse?, Ester S. Buchholz and Carol Korn-Bursztyn review a large sample of the literature to try to determine the role of age in parenting. Their work focuses on areas in which teen mothers are generally seen as deficient.

Teen mothers are often perceived as having inadequate coping skills and social supports. There is no doubt that teen mothers are caught between separating from their families and the need for help in child rearing. The literature suggests that a delicate balance must be in place for a teen mother to have the support she needs to be a good parent.

While teens who marry in response to pregnancy seem to have more difficulty than those who continue to live with their parents, a teen can also have trouble in her family's home. When the teen's mother "takes over", the young woman's sense of herself as a parent is undermined. In contrast, the mother who models parenting skills while encouraging her daughter to assume the maternal role provides the most social support. Child welfare workers will need to examine the dynamics between the teen mother and her family closely to understand whether a teen is truly a bad parent or whether her family is contributing to a sense of inadequacy.

Many assume that teens who become pregnant know the least about parenting. However, the literature reveals that pregnant and nonpregnant teens showed no difference in their knowledge of child rearing. However, all teenagers know less about child rearing than older mothers.

Another study, this time of married, rural teen parents, upheld the stereotype that teens are less nurturing and more negative and punitive in their interactions with their children. However, no comparison was made to older parents living in the same area, leaving open the question of what is considered "normal" parenting in the study community. A second study comparing teen and older parents in the same community found no difference in attitudes between the two.

Child welfare workers, then, would be advised to consider community norms when thinking about a teen's child-rearing attitudes. One way to consider this factor is to ask: would the behavior this teenager exhibits be so alarming if it were coming from an adult parent in the same community?

In terms of actual behavior with their children, the authors noted that while young mothers do not appear as equipped as older mothers to provide an environment that enhances their infant's cognitive development (i.e., age-appropriate toys and activities), they were not found to be more punitive than older mothers. Indeed, the children of teen mothers were well within normal developmental limits when studied at eight months of age. This finding came from a study hypothesizing that children of teen parents would have notable developmental delays.

When the potential for abuse was examined, studies cited by Buchholz and Korn-Bursztyn indicated that teens are more likely to be reported for maltreatment in cases that become "unsubstantiated." The authors suggest that teen parents may be more carefully scrutinized than older parents. When cases are substantiated, neglect is cited more often than abuse.

One of the most alarming findings noted by Buchholz and Korn-Bursztyn was the high rate of depression and stress in teen mothers. One study found their suicide rate to be seven times that of non-mothers. The difficulty of competing developmental crises--adolescent transition, child bearing, and possibly marriage or leaving home--leave the teen mother open to significant life stress that can impinge on her parenting ability. And at any age, depression and stress can predispose a parent to neglect or abuse a child.

This finding indicates that a teen parent's complaints of depression and stress should be taken extremely seriously. If the teen does not volunteer information about feelings of depression, ask questions such as "How does the stress you're feeling now compare to other difficult times in your life?" "Do you have people you can talk to about your feelings and who will give you a break from all of your responsibilities?"

The authors conclude that the role of age in teen parents' difficulties is much less clear than common assumptions would suggest. Rather, societal disapproval of teenage child bearing has reduced the social supports once available. Therefore, intervention should focus on increasing the number and quality of social supports and on maintaining an awareness of the stress and depression that threaten teen mothers.

Intervention Points: Teen Pregnancy

1.Examine both the sources and quality of social supports for the teen mother. Are the adults in her life "taking over" and keeping her from the responsibilities and rewards of motherhood?

2.Take statements about depression and suicide seriously. If these issues do not come up, ask. Symptoms of depression include dramatic changes in sleeping and eating patterns, inability to take pleasure in activities that were once enjoyable, and difficulty concentrating. Work with your local mental health center and medical clinic on screening and treatment for these problems.

3•Teen mothers may need help learning about their babies' development capabilities. See "Interventions with Teen Parents" for possible interventions in this area.

4•If teens are open to consider adoption, connect them with others who have placed children or have been adopted themselves.

5•Don't forget the father and his family. No matter what the young woman or her family says about his whereabouts or interests, his support of a plan can be crucial.

6•Teens do change their minds about placement. Consider interventions that will allow for parent education while supporting the adoption decision.

7•Help promote positive views of adoption in your community. Public service announcements, community forums, and question and answer sessions at local high schools are three possible forums for spreading the word about adoption.



Interventions with Teen Parents

Child welfare professionals working with teen parents may often find themselves wondering, "How can I teach this young mother better parenting skills and help her understand her infant?"

An Intervention Program to Build Competencies in Adolescent Parents speaks to this question. In this article, Butler and colleagues examine a year-long peer counseling program for teen parents. In this program, college women were trained to be "peer counselors" and matched with demographically similar teen mothers. The goals of the program were to decrease stressors and to increase parenting competencies in teen mothers. To see if having a peer counselor made a difference, the mothers were tested on a variety of measures before and after the intervention. They were then compared to a control group of teen mothers who did not have peer counselors.

At the beginning of the year, peer counselors worked at building rapport. This was followed by an education component, during which peer counselors gave the teens information about existing resources. The teen parents were very receptive to this information, in part because it was presented by someone close to their own age. The peer advocates attended childbirth classes, helped parents open bank accounts, and helped them consider education options.

At the start of the year, the mothers who were given peer counselors had more negative perceptions of their children than the control group mothers. During the year, all of the mothers' perceptions of their children became more negative, a common response to the realities of parenting. However, those with peer counselors were less negative than the control group. These mothers reported that they perceived their children's behavior to be "about average" or slightly better. The control group viewed their children in a more negative way, one that could lead to problem parenting.

Parent Education for Adolescent Mothers, by Dickinson and Cudaback, presents a less labor-intensive intervention aimed at helping teen mothers understand their child's development. The study examined the differences between two groups of teen mothers. One group received age-timed brochures detailing the developmental phases their children were in and suggesting activities to enhance the infants' development. A second group received the usual services offered to teen mothers in the area, but not the parenting brochures.

The brochures themselves were short, with a reading level of sixth grade or below. They explained specific tasks the babies were learning at a given phase of development and gave examples of how a mother could help her child's development. Toys, activities, and other types of stimulation were described.

Of the mothers who received the brochures, 93 percent reported reading them thoroughly, 95 percent tried at least one of the suggested activities, and 83 percent were motivated to obtain more things for their infant to touch, listen to, and play with. At the end of the intervention, these teens reported wanting more information about child development and requested a similar series for the toddler age.

Surveys showed that mothers who received the brochures were much less likely than the control group to have scores that would indicate risk to their children. However, the authors also note that in both groups the number of risk scores was high, indicating that brochures alone cannot address all the needs of teen parents. Mailing age-timed brochures to new teen mothers does represent an easily implemented, cost-effective way to provide teen mothers with strategies to assist in their child's cognitive development.

Preventing Pregnancy for Teens in Foster Care

With reunification issues to sort out, visitation and school plans to coordinate, and foster homes to support and monitor, working with children in care can be fairly complicated. Working with adolescents in care can be even more compels, especially when it comes to preventing pregnancy.

Society looks to the family to provide children with information about sex, and teens in foster care often find their families unable to provide guidance on sexual matters. This lack, coupled with the predisposing factors of abuse and neglect, may make teens in care more susceptible to becoming involved in early sexual activity and parenthood.

In Sex Education and Family Planning for Adolescents in Foster Care, researchers Polit, White, and Morton surveyed 48 states to determine what systems were in place to address sexuality for teenagers in foster care. The results of their survey were not encouraging. Only nine states had formal written policies on how family planning and related services were to be provided to child welfare clients. Five states mandated training on teen sexuality for foster parents, and only four required similar training for case workers.

Furthermore, when asked whose responsibility it was to talk to teens about sexually related issues, case workers believed it was the foster parents' responsibility, while foster parents looked to the agency to assume this role.
Many workers and foster parents were concerned about legal constraints regarding teen access to birth control and related information. Particularly when reunification is a goal, the responsibility of the birth parents was considered unclear. North Carolina law says that teenagers can consent without parental permission for medical treatment related to pregnancy or sexually transmitted diseases, mental health, or substance abuse (N.C. General Statute 9-21.5). Therefore, it would appear that family planning services can be accessed easily and without legal constraints.

The article described above was published in 1987. Perhaps new ways of dealing with this issue exist that are not documented in the literature. Practice Notes will keep you updated if we learn of progress in this area.

Friday, May 8, 2009

Refinancing your loan

7 Little-Known Facts about Refinancing Student Loans:

When graduates refinance student loans, it is so simple that many people tend to overlook some of the key factors that can make a major impact on overall cost. By ensuring that you've utilized every money-saving opportunity when it comes to college loan refinancing, you can realize huge savings over the course of the 10-20 years you spend repaying your loan. You might be surprised at how many ways there are to easily save money when you refinance student loans.



Your interest rate will be .60% less if you refinance student loans during the grace period:

The single most important way to reduce the total amount you repay is to refinance student loans during the post-graduation grace period. Following graduation, every student has the right to a 6 month grace period before they must begin repaying their loans.

During this grace period, the rates to refinance student loans are a full .60% lower than they are once the loan enters into repayment status. When you refinance student loans during the grace period, you will lock in these lower rates for the entire repayment period.

Lender incentives can save big bucks when it's time to refinance student loans

Not all companies that provide college loan refinance products are created equally, and where they differ the most is in the interest rate reduction incentives offered. Aside from choosing to refinance student loans during the grace period, lender incentives can be the most effective way to shave a big chunk of money off of your monthly payment.

Look for those that offer interest rate reductions versus dollar amount reductions then compare the percentage of the reduction. Reductions for on-time payments and auto debit are the most common types of incentives. While many companies offer a .25% rate reduction for payments made by auto debit, Scholar Point gives .5%. Many lenders also offer a 1% interest rate for making 36 months of consecutive on-time payments. Scholar Point offers this 1% rate reduction a full year earlier.

Deferment and Forbearance starts over

Student loans allow a post-grad to put loans on hold for a specific amount of time over the course of the student loan repayment period. During this hold, called a deferment or forbearance, the borrower does not need to make payments on the loan although interest does accrue and is added to the balance of the loan.

The deferment and forbearance benefits aren't lost when you refinance student loans - in fact, the "clock" starts over again so that these hold periods are refreshed and can be used again in full.

You could pay more by incorporating fixed rate loans into your consolidation

The reason it's smart to get started with student loan refinancing now is that most student loans are written with a variable interest rate. This means that every year when the federal government decides on a new interest rate, the payment on your old student loan will change if you haven't refinanced.

However, not all student loans are written with variable interest rates. Some types of loans like the Federal Perkins Loan and the HPSL loan are fixed interest rates, meaning that the rates always remain the same. If the interest rate offered when you refinance student loans is higher than that of your fixed rate loans, then you could actually pay more by adding your fixed rate loans to the mix when you refinance student loans. Scholar Point lending specialists can help you find the most cost effective solution in terms of which school loans to incorporate.

No reconsolidation after July 1st, 2006

For years, borrowers have enjoyed the flexibility of refinancing student loans multiple times in order to take advantage of better interest rates or to extend their repayment period. As of July 1st 2006, student loan borrowers no longer have this option except for in a few select circumstances. These new limitations are part of the "Deficit Reduction Act," a set of changes in place to begin repair of the nation's rising deficit.

Since July 1st, 2006 borrowers only have the option of college loan refinancing in cases where some of the loans were left out of the original consolidation or the borrower has new college loans to add in or if the current lender does not offer an income sensitive repayment plan. Because borrowers are more or less locked in with the first lender they choose, it's critical to find a lender with a solid reputation and high incentive savings options.

In order to refinance, loans cannot be in default

When refinancing a student loan, the payments must first be current and not in default. Loans that are current include those that are in their grace period, in deferment or in forbearance - as long as there are no payments due.

If you are a month or so behind on your student loans because of extenuating financial strain, try contacting your current lender about securing a hardship deferment before you refinance student loans. Oftentimes, if the payment is just a little overdue and your financial situation qualifies, the lender will backdate the forbearance thus bringing your loan current so that you can move forward in your effort to refinance student loans.

A consolidated education loan cannot combine private and federal loans

If you've got loans from a private lender as well as loans that were granted through a government student loan program, you'll need to secure two different loan consolidations.

Most lenders recommend consolidating federal student loans first, and then working on private loan consolidation afterward. Separate consolidations are only necessary for private and federal loans. Any type of federal loan can be combined such as subsidized and unsubsidized Stafford loans.

Refinancing student loans is a wonderful way to lower monthly payments and lock in low fixed rates. These 7 key factors can help you to save even more by taking advantage of every benefit that student loans have to offer.


Different loan choices:

1. School Loan Consolidation - Federal Loans

Due to legislative changes affecting federal student loans and turmoil in the financial markets, Scholar Point has suspended its Federal Consolidation Loan program. Please contact your financial aid office or current lender to apply for a consolidation loan.

Top Reasons to Consolidate:

• Lower Monthly Payments up to 53%
• Secure a fixed interest rate as low as 6.625%
• Defer payments up to 3 years

Why Should I Consolidate My Student Loans?

Since federal student loans are just about the lowest interest loans you'll ever have, it makes sense to secure a low fixed rate and payment for the remaining loan term, especially if you're repaying other debt at higher interest rates. We believe we have developed the best online platform out there to help you accomplish this yourself without any pushy sales people calling you. Thousands of graduates and parents have already chosen Scholar Point for our combination of convenience, service and savings.

Benefits of a Federal Student Loan Consolidation

It's not just about lower payments in the short term; here's a complete list of benefits for consolidating college loans with Scholar Point.
• Lower Monthly Payments up to 53%
• Secure a fixed interest rate as low as 6.625%
• Defer payments up to 3 years
• Cut your interest rate another .6% by consolidating during your grace period*
• Reduce your monthly bill-paying paperwork
• Flexible repayment plans
• Pay no penalty for early repayment
• No credit check, no co-signers needed and no fees

Ready to Get Started?
You can apply anytime after you finish school or once your loans go into a grace or repayment period. Use our application to enter your loan information and quickly access your new consolidation interest rate and repayment plan options. If you like what you see, you can e-sign your application. It's that easy.

Information You'll Need for the Application

•Personal information - Date of birth, address, phone, driver's license and email.

•Reference information - Names, addresses, and phone numbers of two references.

•Current Loan information** - Loan type, loan holder, approximate rate and balance.


Check Eligibility for Federal Student Loan Consolidation:

•Consolidate $10,000 to $150,000 in eligible private student loans.

•Be the age of majority (usually 18) in your state of residence.

•Be a U.S. citizen or U.S. Permanent Resident.

Be a graduate or currently enrolled in the final term of a degree program at an approved postsecondary institution.


2. Private Student Loan Consolidation:

Due to legislative changes affecting student loans and turmoil in the financial markets, Scholar Point has suspended its Private Consolidation Loan program. Please contact your financial aid office or current lender to apply for a consolidation loan.

Due to rising education costs, many former students like you borrowed non-federal (or private/alternative) loans in addition to federal loans to pay for their education. If you are repaying both federal and non-federal education loans, you may find repayment to be even more complex. For this reason, we offer a Private Student Loan Consolidation Program that features a competitive interest rate and repayment term flexibility to make your payments more manageable.

Benefits of Private Student Loan Consolidation:

You’ll enjoy numerous benefits when you consolidate private student loans through Scholar Point!
•Managing bills is so much easier when you have only one consolidated private student loan to pay rather than many.

•Reduce your interest rate by .25% when you choose auto-debit payments.

•Your repayment begins a full 45 days after your private student consolidation loan is funded.

•Choose to pay interest-only for one consecutive 12 month period.

•Qualified borrowers can defer payments up to 12 months with forbearance option.

Private Consolidation Loan Eligibility:

To save yourself valuable time, check to see that you meet the eligibility requirements for private student loan consolidation.

Helpful Hint:

i.Private and federal loans have different eligibility requirements. Your eligibility for Scholar Point’s Private Consolidation Loan does not in any way affect your eligibility for our federal consolidation program.

ii.Have at least satisfactory credit and a minimum income of $18,000 or apply with a credit worthy co-signer.

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Do you beleive in intercaste marriage?














































































Twin six sisters:























































































Girl with her amazing pet:




Finance your Nursing School Tuition

Whether your nursing school tuition fund is half-full or half-empty, chances are you can always use financial aid assistance. Nursing school is expensive, but there are many grants, loans, scholarships, work-study and loan forgiveness programs available to hard-working students — you just need to know where to find them.

Discover how easy it is to apply for financial aid, and learn how the Nursing Student Loan Forgiveness Program (NSLFP) can help you pay for your nursing degree. You should also complete the Free Application for Federal Student Aid (FAFSA), which is usually a prerequisite for financial aid eligibility. Here is a basic tutorial on how to tap into the many financial aid resources.

Nursing School Grants:]

Grants are a smart way to finance your education because it's "free" money—you don't have to pay back a grant. With over a thousand federal grant programs in the US, worth more than $400 billion, securing a student grant can help you save hundreds or even thousands of nursing school dollars. Sure, it takes time and energy to apply for a grant, but the payoff is well worth the application effort. Often, schools automatically consider you for grants when you complete a FAFSA and apply to school.

Nursing School Scholarships:

Scholarships generally recognize academic achievement, athletic ability or artistic accomplishments. Scholarships can be very competitive, but they do not need to be paid back and are an excellent way to help finance your education.

Some scholarships may have restrictions, such as applying to a specific course of study or active involvement in an organization or group. Some scholarships apply to general education (such as athletic scholarships), but usually a certain grade point average needs to be maintained to keep these types of scholarships.

For nursing students, the professional associations for your specialty may give scholarships to qualified individuals. For example, the Oncology Nursing Society offers scholarships to students pursuing a master's, doctorate or post-master’s certificate. Some of the best scholarship resources, however, can be religious organizations, private and public schools, small businesses, large corporations, community groups, generous individuals or philanthropic foundations.

Nursing School Work Study Programs:

Work-study programs help students finance their education by working in on-campus jobs, community-related jobs or assisting teachers. Work-study awards typically depend on factors such as level of financial need and school funding availability.
You can work with professors' on-campus or work with a nonprofit agency or public bureau off-campus. Often students choose work study programs that are related to their field of study which, not only helps them finance their education, but also gives them resume experience.

Work-study pays at least the federal minimum wage, and often more, depending on the skills and level of experience needed. You can indicate whether you want to be considered for work-study assistance when completing your FAFSA form.

Nursing School Loans:

While no one likes to take out a loan, college loans are an investment in your future. The investment you make now will pay big dividends later in higher income, better career opportunities and job satisfaction.

College loans have lower interest because the federal government regulates the maximum interest that lenders can charge on federally guaranteed student loans. This helps make the loans easier to pay-back, which encourages more people to attend school. In addition, loan repayment does not begin until six months after graduation (or when enrollment in school is less than half time).

There is also assistance for borrowers having difficulty repaying their education loans, including deferment and forbearance. These options give borrowers more interest-free time on their loans.

1. Stafford Loan
There are different types of loans, including a Stafford Loan, the most common federal student loan available. The Stafford Loan includes the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan (Direct Loan) Program. Both programs are dispersed directly to students, and can be subsidized or unsubsidized, depending on the student's financial situation. Loan amounts are also need-based, and will be distributed accordingly.

2. Private Loan
Another type of student loan is a private loan. These loans offer higher limits and no payments until graduation, but interest starts to accrue immediately after the loan is distributed. Private student loans can be made out to either students or parents and are a nice alternative to credit card debt.
You do need to complete federal forms, such as the FAFSA to get private loans. Eligibility often depends on you or your parents' credit score, and your chances of being approved for a private loan are better if your credit score is above 650. Interest rates and fees are based on your credit score, so it is often better to apply with a cosigner to achieve a lower rate.

3. PLUS Loan
There are also PLUS Loans. These loans are through FFEL and Direct Loan programs, but they are geared toward parents. In order to qualify for this type of loan, you must be a dependent student enrolled at least half time in your undergraduate education, and your parent has to apply for the loan.
This loan also requires a good credit score, and there is a yearly limit. This limit is equal to your school costs minus other financial assistance you receive. In addition to the loan limit, the first payment is due 60 days after the loan is distributed with a small fee that your parents are required to pay (which is usually less than four percent of the loan).

4. Grad PLUS Loan
Graduate and professional degree students are now eligible to borrow under the PLUS Loan program, under the same terms and conditions. This program is referred to as the GRAD PLUS Loan program.


Nursing School Loan Forgiveness Programs:

Loan forgiveness programs, also referred to as loan repayment programs, help students pay back their nursing college loans as they work in a nursing setting. These programs are an ideal type of financial aid, because you can gain valuable nursing experience in a hospital setting, get paid for your work and get reimbursed for your nursing school education.
There are many loan forgiveness programs available in response to the growing nursing shortage throughout the US. The loan forgiveness program is funded by government agencies to help areas throughout the country that are desperate for nurses. So, in exchange for nursing services, the program offers to pay back or forgive student loan debt—usually at least one year of student loans is forgiven for each year the nurse serves in the area of need. This is a great way for you to get out of financial debt while gaining valuable nursing experience.


How to get Scholarships and Grants?

Many scholarship and grant opportunities are available to nursing students to encourage people to enter the nursing field and help alleviate the increasing nursing shortages. With a little research, you can learn how to obtain this free money for your nursing school education.
Uncovering these funding sources can help free you from financial worries, and instead let you dedicate your efforts toward your schooling. The following five tips can help start your nursing scholarship and grant search and guide you in the application process.

Tip #1: Complete a FAFSA (Free Application for Federal Student Aid)
Based on details you provide in your FAFSA, the US Department of Education produces a report that estimates your expected contribution toward college costs and indicates the types and amounts of financial aid for which you are eligible.

Each year that you want to receive financial aid for your schooling, you should submit a FAFSA. Your financial circumstances may change from year to year, making you eligible for additional assistance as you progress through college.

Tip #2: Research Funding Sources on a Regular Basis
Scholarships become available throughout the year. Set a recurring time in your schedule to research nursing school scholarship and grant options. You can start with your school's career center—discuss your goals with a career counselor who's familiar with the field or spend time looking through the valuable career resources available.

Another good place to start looking is the American Association of Colleges of Nursing (AACN). Along with an abundance of nursing career information, this group posts announcements for grants, scholarships, fellowships and other funding sources for nursing students. For details, visit AACN.

You should also inquire about nursing scholarships and grants at the colleges you are interested in attending. You may find alumnae or professional groups that offer scholarships specifically to students attending the college you have chosen.
Your search should continue throughout your college career, because your eligibility may change as your experience and level of education change.

Tip #3: Expand Your Scholarship Eligibility
Extracurricular activities at school and your community involvement efforts can play an important role in your search for nursing scholarships. Such activities reflect well on application essays, because they demonstrate your well-rounded background. Not to mention, you may meet teachers, parents and other organizational leaders who can recommend you for scholarships or inform you of available opportunities.

Additionally, your parents or other relatives may belong to clubs or be employed by businesses that offer scholarships to family members. Explore every avenue available—you never know where you might discover a source to help fund your nursing school education.

Tip #4: Craft an Exceptional Scholarship Application Essay
Your essay represents you better than any other piece of your nursing scholarship application and can boost your edge against the competition. Use these hints to make the most of your essay:

• Assume your audience will skim, so create a strong introduction that inspires essay reviewers to keep reading.

• Answer the essay question thoughtfully. Your readers are looking for an insightful and focused response to the essay question.

• Keep it personal and write with sincerity and individuality. You want your readers to establish a personal relationship with you.

• Use natural language and a professional tone. Write clearly and concisely, paying attention to spelling and grammar. A high quality essay will reflect well on your own personal qualities.

• Leave time for editing and revision. Ask a teacher, parents or others whose opinions could improve the quality of your writing to review your essay.

Tip #5: Explore Internships and Other Practical Opportunities

Working in the nursing field, anything from an unpaid internship to a paid position, can lend volumes to your efforts to get nursing school scholarships. Not only will you gain insight to practical nursing career information, but the experience will enhance the content of your application essays and demonstrate your dedication to the field.

In addition, your work experience can lead you toward a potential specialty area where you may find another set of scholarship opportunities. For example, groups such as the Oncology Nursing Society offer grants and scholarships to those who demonstrate a commitment to the field.

Medical Insurance and it's type

International Medical Insurance for Expatriates

Moving overseas is an important decision that, along with excitement, brings numerous concerns. Both new and experienced expatriates view the purchase of medical insurance to be an additional cause of anxiety and stress.
In your home country, the majority of people are provided with medical insurance by an employer. Even if your employer does not provide medical insurance there are many sources of good information to help and assist you. However, that changes once you move overseas. Not all companies have the experience to assist their employees with medical insurance overseas, and expatriates often have to take care of medical insurance on their own.

Professional Expatriate Medical Insurance

The process of finding a suitable expatriate medical insurance plan may seem complicated and confusing, but it is extremely important to take the time to find the right coverage. Finding the right plan is not as difficult with the assistance of professional advisors and there are actually many international medical insurance companies around the world who specialize in insuring expatriates.
International Medical Insurers
We work with the world's top insurance companies to help find you the best international medical insurance plans available. The plans that we offer are comprehensive, flexible, annual and adaptable. We will provide you with international medical insurance policies that offer complete medical cover anywhere in the world.

International Medical Insurance Cover

Wherever you may be, we can provide comprehensive medical insurance that are globally portable. We specialize in international medical insurance plans valid in China, Hong Kong, Thailand, Singapore, the UAE, Saudi Arabia, Israel, the United Kingdom, The United States, and Canada. However, we are not limited to working in these countries and can be of assistance no matter where you are located.

Here are some different types of Medical Insurance mention below:

Individual Medical Insurance:

An Individual or individual insurance plan is the most common plan sold by international medical insurance companies. Premiums are based on the age of the applicants, area of cover and the plans selected. The location and occupation of the policyholder do not normally impact the premium.

Almost all international insurance companies offer Individual and individual insurance plans that are guaranteed renewable each year. This ensures that, even after suffering from a serious illness or accident, the insurance company will not refuse cover the following year. One of the biggest reasons to consider a worldwide insurance plan is that no matter where the individual decides to move, the plan can be kept in force and the benefits will not change.

Individual and individual insurance plans include core in-patient coverage with various additional options such as out-patient coverage, emergency evacuation, maternity and dental. In some cases insurance companies offer ‘individual' rates and give extra discounts for more than one child or offer free cover to children under 10.

Family Medical Insurance:

Our family health insurance plans are suitable for all ages, occupations, are annual and guaranteed renewable. We do not calculate your premium based on your nationality or your occupation but instead the premium is dependant on your age and where your family lives. You can relocate to a new country or back home and your overseas health insurance plan can normally go with you as they are not specific to one country.

The health insurance plans are designed for families traveling abroad regularly and expatriate families. Policies can be designed to include chronic conditions, maternity, dental, emergency evacuation, personal accident cover and numerous other benefits.

Group Medical Insurance:

A company can also apply for international medical insurance for its employees, (it is also possible to form an affinity group around a social group or sports team). In this case it is often possible to receive significant discounts over individual rates and get better benefits. Not all employees need to be in the same location or country.

For larger groups (20 or more employees) it is possible to get coverage that includes ‘Medical History Disregarded' (MHD). This means if some group members have a pre-existing condition, the insurance provider will often allow this to be covered. This is advantageous for the employer since it is a very good employee benefit.

For larger groups that include MHD the renewal insurance premiums take into account the claims performance of the group. If the performance is good then the premium can drop but if the claims are bad then the premium can increase.
Normally in groups scheme employees can be enrolled part way through the policy year, or terminated in the policy year, and premiums are paid or refunded on a pro-rata basis.

On leaving the group some insurance companies allow employees to maintain coverage on an individual basis but at individual rates. In some cases the insurer will even continue to cover the pre-existing condition that manifested itself while the employee was insured on the group scheme.
Group insurance plans can also be customized, so the benefits can be tailored to the group's preferences. It also allows more senior staff members have higher levels of coverage.

Teacher Medical Insurance:

Teaching overseas is a challenging and rewarding experience and the number of expatriate teachers has been continuously rising. Insurance companies have therefore developed special expat teacher medical insurance plans that offer competitive premiums but similar benefits to a regular international medical insurance plan.
International health insurance plans for teachers can cover all the essential elements of a comprehensive medical plan: in-patient; out-patient, emergency evacuation, maternity and dental. The plan can be kept in force as long as the teacher works at an international school but upon returning home or changing occupation the plan would need to stop or be changed to a ‘normal' international plan.

Expat teachers typically only teach for a short period of time abroad (1-2 years), and the plan is not really designed to be taken out indefinitely. Teacher plans are very good value but if you are looking for a long term health insurance solution then a regular international health insurance plan should be considered.

Travel Medical Insurance:

Travel insurance is designed to cover a person for a short duration, normally from a few days up to a year. During the period of cover the insured person is covered for medical expenses and benefits such as emergency evacuation and out-patient coverage.

Monday, May 4, 2009

Consolidation loan

Student Loan consolidation:

Loan consolidation is the channel through which you can bring all your loans under one single policy and reduce the monthly payments by increasing the duration of the loan. Consolidation has loads of benefits, some being:
• Lower rate of interest
• Locking in loans at a lower interest rate
• Lower monthly payments
• Worrying about just one loan instead of many
• Longer repayment schedule

The logic behind consolidation is simple. Consolidation merges all your loans and bills into one single payment. It reduces your (the borrower's) monthly bill of loan repayment. In simpler terms, think of it this way: If you have to pay $100 in 5 years, you pay $20 every year (ignoring any interest component), and if you have to pay the same $100 in 10 years, you pay $10 every year. And in certain cases, the monthly payment burden gets reduced, and the loan payment period also doesn't get increased. This is what consolidation does; it reduces your monthly expenditure on loan repayment and gives you that extra cash in hand.
Now to tell you a little bit more about the Student Consolidation Program. If your loan is eligible to be consolidated under this program (see the list below) then you don't have to worry about variable interest rates anymore. Under the Student Consolidation Program, the interest rates are fixed based on many technicalities such as the amount of loan outstanding, the interest rate currently paid, etc. This rate of interest would be fixed throughout the life of your loan. So no more watching the interest rate markets for fluctuations that can hamper your lifestyle.

The list of loans that can be consolidated under the Student Consolidation Program:
• Unsubsidized Federal Stafford Loans
• Federal Parent Loans for Undergraduate Students (PLUS)
• Federal Supplemental Loans for Students (SLS)
• National Direct Student Loans (NDSL)
• Health Professions Student Loans
• Federal Perkins Loans
• Subsidized Federal Stafford Loans
• All Federal Direct Student Loans (Direct Loans)
• Health Education Assistance Loans (HEAL)
• Nursing Student Loans
• Student Consolidation Loans
• Federally Insured Student Loans (FISL)
• Loan from the Department of Education

If your loan falls under any of the above, then loan consolidation is a realistic option for you.

Federal Loan consolidation:

Federal loan consolidation allows you to consolidate your outstanding federal education loans into a single new loan, even if your loans are currently held by more than one lender and are of different loan types. By consolidating your student loans, you can significantly lower your monthly payments by lengthening the term of your loans and locking in a low fixed interest rate. Most importantly, you can save thousands of dollars during the entire repayment term.

Additional Federal Loan Consolidation Benefits:
• Fixed rates as low as 6.75%
• Extended repayment term with lower monthly payments
• No fees
• No credit checks
• No prepayment penalties
• Seven flexible repayment plans
• Turn several monthly payments into one
• Deferment and forbearance available

Extended repayment term with lower monthly payments

By consolidating your loans you can extend your repayment term up to 30 years, depending upon your loan balance. This has the added benefit of lowering your monthly payments, so you are left with more money in your pocket each month

No credit checks

There are no credit checks whatsoever for a federal loan consolidation. As a matter of fact, consolidating your loans can actually improve your credit rating, as a result of having lower monthly payments. This can actually make it easier for you to qualify for mortgages and other major loans.

No prepayment penalties

Although you have the option of extending your repayment term, you will not be charged any fees or penalties for paying off your loans early. This means that if you take advantage of the low consolidation interest rates, you can save thousands even if you pay down your loan early.

Combine several monthly payments into one

If you are currently making payments to more than one lender, consolidating your loans allows you to eliminate the complications of having to make multiple payments. Instead, you can combine those payments into one easy monthly payment.

Deferment and forbearance available

Loan consolidation is done through the federal loan consolidation program, and thus you retain government benefits such as deferment and forbearance. Like your current federal loans, federal loan consolidations are guaranteed and insured by the federal government.

A deferment is a temporary suspension of loan payments for specific situations such as reenrollment in school, unemployment (up to 3 years only), or economic hardship (up to 3 years only). Forbearance is a temporary postponement or reduction of the payments on your consolidation loan for a period of time due to financial difficulty.


Private Loan consolidation:

Private loan consolidation means combining your outstanding private education loans into one loan, including private loans used to cover educational expenses such as tuition, housing and/or other educational expenses. This is in addition to already consolidated private educational loans. Consolidating your private educational loans allows you to lower your monthly payment significantly by lengthening the term of your loans, while receiving a low variable interest rate. This is possible even if your private educational loans are held by more than one lender or are of different types.

Eligibility:

Eligibility to consolidate private educational loans is based on the following criteria:
 Be at least 21 years old at the time of application
 Have a minimum of $7,500 in US issued private educational loans
 Are in repayment status of private education loans at the time of application
 Have good credit standing Are a US citizen or permanent resident (eligible non US citizen)

Benefits:

Consolidating private educational loans permits several benefits.
 Simple repayment terms
 Low, variable interest rate
 No penalties for prepayment
 One low convenient monthly payment to one lender rather than various monthly payments

Business Insurance

Business insurance and its types:

Business insurance is a broad description that can be broken down into a list of nine types of insurance policies and here I will briefly explain the coverage and expand on these as individual topics. For now, these are general descriptions so that we are talking about the same thing when I use these terms in later articles.

Property insurance:

Property insurance insures against loss or damage to the location of the business and its contents. It can also insure the property of others in your control when the loss occurs. Property insurance can be for a specific risk. For example, a fire insurance policy insures only against a fire loss to the location. A tornado is not a fire and, therefore, that loss would not be covered. The insured location can be owned, leased or rented.

Casualty insurance:

Some insurers will lump property and casualty insurance together and refer to the coverage as property and casualty insurance. In fact, packaged policies of property and casualty are often the best purchase a business owner can make. However, to have an understanding of the difference between the coverage, I will discuss this as a separate type of insurance. Casualty insurance insures against loss or damage to the business.

Liability insurance:
Liability insurance insures against liability legally imposed upon your business because of the negligence of the business or its employees. Put another way, it protects your business when the business is sued for negligence

Commercial Auto:
Your personal automobile policy does NOT cover vehicles used by your business. If your business uses vehicles or anything that is required to be titled by your state, then you need a commercial auto policy. Commercial auto coverage insures against property damage to vehicles and damage caused to others by those vehicles

Worker s Compensation:
You will need to insure your employees against on-the-job injuries. Every state is different. But, most states have put into place some form of workers' compensation system. Workers' compensation is a system where the employee is not allowed, by statute, to sue their employer for on-the-job injuries; but, in return, the employer must participate in a system that provides nearly automatic payment to the employee in case of injury for medical bills and damages. There are many options for workers' compensation coverage. Some states allow an employer to opt-out of the system if the employer is self insured, some run the system

Business Interruption:
through private insurers while others use state agencies Business interruption insurance insures against loss or damage to the cash flow and profit of a business caused by the business being unable to operate because of interruption. The easiest example is to think about a critical piece of machinery being struck by lightning. The repairs to the machine may be covered by other coverage such as property or casualty insurance. But, if you can not make widgets for three months, than there is no replacement of that income without this coverage.]

Health Insurance:
To be competitive, most businesses need to offer their workers health insurance. This insurance offers a health coverage benefit to your employees (and you).

Life and disability Insurance:
Life and disability insurance protects the business against the death or disability of key employees. For example, one partner carries a life insurance policy naming the partnership as a beneficiary. If that partner dies, and the business has planned properly, the proceeds of the policy can be used by the business to buy out the share of the decedent's partnership interest from the estate

Other Insurance and scripted policies:
It could very well be that your business is so unique to have need for coverage that is a mixture of some of the coverage listed above or something written specifically for your particular risk. One can think of some actresses, actors, or sports stars that have had legs insured at some point in there careers. This would be an example of a scripted policy.

Before you choose any insurance Company:

Choosing an insurance company to provide your business insurance is an important part of your business insurance plan. Once you have chosen an insurance professional, you will need to choose among different policies and programs offered by different insurers.

Here are some things to consider in choosing an insurance company for your business insurance.

Price, Stability, and Service:

Price, stability and service are three important considerations in choosing an insurance company.

· Price: The cost of coverage can vary greatly from one insurer to the next without any difference in coverage. Have your insurance professional secure quotes from at least three insurers.

· Stability: Insurance companies do fail and the results can be disastrous. Companies are rated for their stability by various rating services such as A.M. Best or Standard & Poor . Consider companies with a Best's Rating of B+ or better.

· Service: You will want an insurance company with an excellent reputation for customer service

Registered in Your State:

You will want an insurance company with a physical location in your state. You will also want a company that is registered to sell insurance in your state.

Sometimes smaller insurers will sell policies through another company registered in the state. For your business, stay with a company registered and physically present in your state. You can search on your state insurance department website to determine if an insurer .

Sunday, May 3, 2009

What is term life insurance?




Life Insurance:





The term is simple. You pay premium for a period of time(the term) form one to thirty years and if you die during that period the insurance is paid to the person or the persons you designate to receive it- called the beneficiary.






The term life insurance usually have the lowest premium in the early years, making it most affordable life insurance-initially. Term doesn’t build cash value.





It covers you for a specified period of time (usually from 5 to 30 yeas of time you choose). If you purchase $1000000 term life insurance for 20 years period and you die any of those 20 years, your beneficiary receives the million dollars.





If you are still living at the end of the term, your insurance policy is over unless you can renew the policy. When you renew the policy (assuming your policy has that feature) it will renew at higher price reflecting now your older age. Term insurance has no buildup of cash as with whole life insurance. Some term life insurance policies do offer return of premium.





LIFE INSURANCE BASICS:


Why should I buy life insurance?

Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations:


Replace income for dependents

If people depend on your income, life insurance can replace that income for them if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, siblings or adult children who continue to rely on you financially. Insurance to replace your income can be especially useful if the government- or employer-sponsored benefits of your surviving spouse or domestic partner will be reduced after your death.


Pay final expenses:

Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.


Create an inheritance for your heirs:

Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.


Pay federal “death” taxes and state “death” taxes:

Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance. Changes in the federal “death” tax rules between now and January 1, 2011 will likely lessen the impact of this tax on some people, but some states are offsetting those federal decreases with increases in their state-level “death” taxes.


Make significant charitable contributions:

By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.


Create a source of savings:

Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request. Since most people make paying their life insurance policy premiums a high priority, buying a cash-value type policy can create a kind of “forced” savings plan. Furthermore, the interest credited is tax deferred (and tax exempt if the money is paid as a death claim).



How much life insurance do I need?



In most cases, if you have no dependents and have enough money to pay your final expenses, you don’t need any life insurance.



If you want to create an inheritance or make a charitable contribution, buy enough life insurance to achieve those goals.



If you have dependents, buy enough life insurance so that, when combined with other sources of income, it will replace the income you now generate for them, plus enough to offset any additional expenses they will incur to replace services you provide (for a simple example, if you do your own taxes, the survivors might have to hire a professional tax preparer). Also, your family might need extra money to make some changes after you die. For example, they may want to relocate, or your spouse may need to go back to school to be in a better position to help support the family.

You should also plan to replace “hidden income” that would be lost at death. Hidden income is income that you receive through your employment but that isn’t part of your gross wages. It includes things like your employer’s subsidy of your health insurance premium, the matching contribution to your 401(k) plan, and many other “perks,” large and small. This is an often-overlooked insurance need: the cost of replacing just your health insurance and retirement contributions could be the equivalent of $2,000 per month or more.



Of course, you should also plan for expenses that arise at death. These include the funeral costs, taxes and administrative costs associated with “winding up” an estate and passing property to heirs. At a minimum, plan for $15,000.



What are the principal types of life insurance?



There are two major types of life insurance—term and whole life. Whole life is sometimes called permanent life insurance, and it encompasses several subcategories, including traditional whole life, universal life, variable life and variable universal life. In 2003, about 6.4 million individual life insurance policies bought were term and about 7.1 million were whole life.



Life insurance products for groups are different from life insurance sold to individuals. The information below focuses on life insurance sold to individuals.

Term:

Term Insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from one to 30 years. Most term policies have no other benefit provisions.



There are two basic types of term life insurance policies—level term and decreasing term.



  1. Level term means that the death benefit stays the same throughout the duration of the policy.

  2. Decreasing term means that the death benefit drops, usually in one-year increments, over the course of the policy’s term



In 2003, virtually all (97 percent) of the term life insurance bought was level term.



Whole Life/Permanent:



Whole life or permanent insurance pays a death benefit whenever you die—even if you live to 100! There are three major types of whole life or permanent life insurance—traditional whole life, universal life, and variable universal life, and there are variations within each type.



In the case of traditional whole life, both the death benefit and the premium are designed to stay the same (level) throughout the life of the policy. The cost per $1,000 of benefit increases as the insured person ages, and it obviously gets very high when the insured lives to 80 and beyond. The insurance company could charge a premium that increases each year, but that would make it very hard for most people to afford life insurance at advanced ages. So the comapny keeps the premium level by charging a premium that, in the early years, is higher than what’s needed to pay claims, investing that money, and then using it to supplement the level premium to help pay the cost of life insurance for older people.



By law, when these “overpayments” reach a certain amount, they must be available to the policyowner as a cash value if he or she decides not to continue with the original plan. The cash value is an alternative, not an additional, benefit under the policy. In the 1970s and 1980s, life insurance companies introduced two variations on the traditional whole life product—universal life insurance and variable universal life insurance.





What is a beneficiary?

Beneficiary is the person or entity you name in a life insurance policy to receive the death benefit. You can name:


  1. One person

  2. Two or more people

  3. The trustee of a trust you’ve set up

  4. A charity

  5. Your estate

If you don’t name a beneficiary, the death benefit will be paid to your estate.


Two “levels” of beneficiaries:


Your life insurance policy should have both “primary” and “contingent” beneficiaries. The primary beneficiary gets the death benefits if he or she can be found after your death. Contingent beneficiaries get the death benefits if the primary beneficiary can’t be found. If no primary or contingent beneficiaries can be found, the death benefit will be paid to your estate.


As part of naming beneficiaries, you should identify them as clearly as possible and include their social security numbers. This will make it easier for the life insurance company to find them, and it will make it less likely that disputes will arise regarding the death benefits. For example, if you write "wife [or husband] of the insured" without using a specific name, an ex-spouse could claim the death benefit. On the other hand, if you have named specific children, any later-born or adopted children will not receive the death benefit—unless you change the beneficiary designation to include them.


Besides naming beneficiaries, you should specify how the benefits are to be handled if one or more beneficiaries can’t be found. For example, suppose you have two children and you name each one to receive half of the death benefit. If one of the children dies before you do, do you want the other child to get the entire death benefit, or the deceased child’s heirs to get his or her share?


If the death benefit goes to your estate, probate proceedings could delay distributing the money, and the cost of probate could diminish the amount available to your heirs.


Choosing beneficiaries, and keeping those choices up-to-date, is an important part of owning life insurance. The birth or adoption of a child, marriage or divorce can affect your initial choice. Review your beneficiary designation as new situations arise in order to make sure your choice is still appropriate.



TYPES OF LIFE INSURANCE:



What are the types of term insurance policies?


Term insurance comes in two basic varieties—level term and decreasing term. These days, almost everyone buys level term insurance. The terms “level” and “decreasing” refer to the death benefit amount during the term of the policy. A level term policy pays the same benefit amount if death occurs at any point during the term.



Common types of level term are:


  • yearly- (or annually-)

  • renewable term5-year

  • renewable term10-year term

  • 15-year term

  • 20-year term

  • 25-year term

  • 30-year term

  • term to a specified age (usually 65)

Yearly renewable term, once popular, is no longer a top seller. The most popular type is now 20-year term. Most companies will not sell term insurance to an applicant for a term that ends past his or her 80th birthday.


If a policy is “renewable,” that means it continues in force for an additional term or terms, up to a specified age, even if the health of the insured (or other factors) would cause him or her to be rejected if he or she applied for a new life insurance policy.


Generally, the premium for the policy is based on the insured person’s age and health at the policy’s start, and the premium remains the same (level) for the length of the term. So, premiums for 5-year renewable term can be level for 5 years, then to a new rate reflecting the new age of the insured, and so on every five years. Some longer term policies will guarantee that the premium will not increase during the term; others don’t make that guarantee, enabling the insurance company to raise the rate during the policy’s term.


Some term policies are convertible. This means that the policy’s owner has the right to change it into a permanent type of life insurance without additional evidence of insurability.“


Return of Premium”


In most types of term insurance, including homeowners and auto insurance, if you haven’t had a claim under the policy by the time it expires, you get no refund of the premium. Your premium bought the protection that you had but didn’t need, and you’ve received fair value. Some term life insurance consumers have been unhappy at this outcome, so some insurers have created term life with a “return of premium” feature. The premiums for the insurance with this feature are often significantly higher than for policies without it, and they generally require that you keep the policy in force to its term or else you forfeit the return of premium benefit. Some policies will return the base premium but not the extra premium (for the return benefit), and others will return both.



Here’s a Return of Insurance Premium Example:

You obtain a20 years of premium insurance policy at $50 per month. At the end of 20 years you get a check for $12000(100% of what you paid $600 per year x 20 years) from the life insurance company, tax free. There is no obligation to keep it for 20 years but if you do, you are guaranteed to get all your money back.


What are the different types of permanent policies?


Whole or ordinary life:

This is the most common type of permanent insurance policy. It offers a death benefit along with a savings account. If you pick this type of life insurance policy, you are agreeing to pay a certain amount in premiums on a regular basis for a specific death benefit. The savings element would grow based on dividends the company pays to you.


Universal or adjustable life:

This type of policy offers you more flexibility than whole life insurance. You may be able to increase the death benefit, if you pass a medical examination. The savings vehicle (called a cash value account) generally earns a money market rate of interest. After money has accumulated in your account, you will also have the option of altering your premium payments – providing there is enough money in your account to cover the costs. This can be a useful feature if your economic situation has suddenly changed. However, you would need to keep in mind that if you stop or reduce your premiums and the saving accumulation gets used up, the policy might lapse and your life insurance coverage will end. You should check with your agent before deciding not to make premium payments for extended periods because you might not have enough cash value to pay the monthly charges to prevent a policy lapse.


Variable life:

This policy combines death protection with a savings account that you can invest in stocks, bonds and money market mutual funds. The value of your policy may grow more quickly, but you also have more risk. If your investments do not perform well, your cash value and death benefit may decrease. Some policies, however, guarantee that your death benefit will not fall below a minimum level.


Variable-universal life:

If you purchase this type of policy, you get the features of variable and universal life policies. You have the investment risks and rewards characteristic of variable life insurance, coupled with the ability to adjust your premiums and death benefit that is characteristic of universal life insurance.



Why should I purchase permanent insurance?


A permanent life policy provides lifelong insurance protection. The policy pays a death benefit if you die tomorrow or if you live to be a hundred. There is also a savings element that will grow on a tax-deferred basis and may become substantial over time. Because of the savings element, premiums are generally higher for permanent than for term insurance. However, the premium in a permanent policy remains the same, while term can go up substantially every time you renew it.



There are a number of different types of permanent insurance policies, such as whole (ordinary) life, universal life, variable life, and variable/universal life. In a permanent policy, the cash value is different from its face value amount. The face amount is the money that will be paid at death. Cash value is the amount of money available to you. There are a number of ways that you can use this cash savings. For instance, you can take a loan against it or you can surrender the policy before you die to collect the accumulated savings.



There are unique features to a permanent policy such as:


  1. You can lock in premiums when you purchase the policy. By purchasing a permanent policy, the premium will not increase as you age or if your health status changes.

  2. The policy will accumulate cash savings.Depending on the policy, you may be able to withdraw some of the money. You also may have these options:


  • Use the cash value to pay premiums. If unexpected expenses occur, you can stop or reduce your premiums. The cash value in the policy can be used toward the premium payment to continue your current insurance protection – providing there is enough money accumulated.



  • Borrow from the insurance company using the cash value in your life insurance as collateral. Like all loans, you will ultimately need to repay the insurer with interest. Otherwise, the policy may lapse or your beneficiaries will receive a reduced death benefit. However, unlike loans from most financial institutions, the loan is not dependent on credit checks or other restrictions.


HELP!


If I can’t pay my premium, what should I do?


If unexpected expenses come up and you can’t pay your life insurance premium, you should know the possible consequences. The effect depends on the type of policy and coverage you have and the policy terms and conditions.

Term:

If you stop paying premiums, your coverage lapses.



Permanent:



If you have this type of policy, you will have the following choices:


Cash out the policy.

This means that you can stop paying the premium and collect the available cash savings. You will no longer be covered by life insurance, but you will at least save some of the proceeds of the policy. You may, however, have to pay taxes on some of the cash value if the sum exceeds what you have paid in premiums.


Non-forfeiture options

There may be a “reduced paid-up” option. This means that you can stop paying premiums completely in return for a reduced death benefit and no cash saving. You may also be able to convert the permanent policy to an extended term policy for a time period based on the accumulated cash savings in the policy.


Policy will lapse

If this happens, see if the policy can be reinstated. Some insurers may allow this if you do it within five years of lapsing. You will most likely have to pass a physical examination for the reinstated policy and pay back the premiums you would have paid plus interest. Annual premiums for the reinstated policy may be lower than those for a new, comparable policy.



How do I file a life insurance claim?



To begin the claims process:


  1. Get several copies of the death certificate.

  2. Call your insurance agent. He or she can help you fill out the necessary forms and act as an intermediary with the insurance company. (Don’t keep life insurance policies in your safe deposit box. In most states, safe deposit boxes are sealed temporarily upon the death of the owner, which can delay the settlement. ) If you don’t have an insurance agent, or don’t know who the deceased's agent was, contact the company directly.

  3. Submit a certified copy of the death certificate from the funeral director with the policy claim. Once the claim is submitted, a settlement should be issued to you shortly. Once a life insurance claim is submitted, you must determine how the proceeds will be distributed.

These are some of the options available:



  • Lump sum -- You receive the entire death benefit in a single amount.

  • Specific income provision -- The company pays you both principal and interest on a predetermined schedule.

  • Life income option -- You receive a guaranteed income for life. The amount of income depends on the death benefit, your gender and your age at the time of the insured's death.

  • Interest income option -- The company holds the proceeds and pays you interest on them. The death benefit remains intact and goes to a secondary beneficiary upon your death.



How can I locate a lost life insurance policy?



If a family member dies and you are unable to locate his or her life insurance policies, there is, unfortunately, no national or statewide database of all life insurance policies that you can consult. However, you can try to determine:


  • which insurance company might have issued the policy

  • which agent or broker might have sold or serviced the policy

  • whether the deceased might have had insurance through an employer, union or trade association, or other group to which he/she belonged.

Here are some strategies that might turn up useful information:


Look for insurance-related documents.



Search through files, bank safe deposit boxes, and other storage places to see if there are any insurance-related documents. Also, look through address books to see if the names of any insurance agents or companies are listed. An agent or company who sold the deceased their auto or home insurance may know about the existence of a life insurance policy.


Contact current and prior financial advisors.

Contact current or prior attorneys, accountants, investment advisors, bankers, business insurance agents/brokers and others who might have known about the deceased’s life insurance.


Review life insurance applications.

The application for each policy is attached to that policy. So if you can find any of the deceased’s life insurance policies, look at the applications for them. The application will have a list of all other life insurance policies owned at the time of the application.


Contact previous employers.

Former employers may have a record of a past group policy or policies.


Check bank books and canceled checks.

See if any checks have been made out to life insurance companies over the years.


Check the mail for a year following the death of the policyholder.

Look for premium notices or dividend notices. If a policy has been paid up, there will no notice of premium payments due. However, the company may still send an annual notice regarding the status of the policy or it may pay or send notice of a dividend.


Review the deceased’s income tax returns for the past two years.

Look for interest income from and interest expenses paid to life insurance companies. Life insurance companies pay interest on accumulations on permanent policies and charge interest on policy loans.


Contact all relevant state insurance departments.

The National Association of Insurance Commissioners has a “Life Insurance Company Location System” to help you find state insurance department personnel who might help identify companies that might have written life insurance on the deceased.



Check with the state's unclaimed property office.

If a life insurance company knows that an insured client has died but can’t find the beneficiary, it must turn the death benefit over to the state in which the policy was bought as “unclaimed property.” If you know (or can guess) where the policy was bought, you can contact the state comptroller’s department to see if it has any unclaimed money from life insurance policies belonging to the deceased.


Contact a private service that will search for “lost life insurance.”

Several private companies will, for a fee, contact insurance companies for you to find out if the deceased was insured. This service is often provided through their Web sites.




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