Insurance - Basics ...

What is insurance?

Insurance is a means of providing protection against financial loss in a great variety of situations. It is a contract in which one party agrees to pay for another party's financial loss resulting from a specified event.

Insurance works on the principal of sharing losses. If you wish to be insured, against any type of loss, agree to make regular payments, called premiums, to an insurance company. In return, the company gives you a contract, the insurance policy. The company promises to pay a certain sum of money for the type of loss stated in the policy.

History

Insurance is thousands of years old. The Code of Hammurabi, a collection of Babylonian laws of 1700BC, is believed to be the first form of credit insurance. A borrower did not have to repay a loan if personal misfortune made it impossible to do so. Insurance as we know it today can be traced to the Great Fire of London in 1666, which devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings.

Types of Insurance

Insurance generally covers situations involving pure risk - that is, situations in which only losses can occur. Such situations include fire, floods and accidents. People also buy insurance to cover unusual types of financial losses like, a dancer might insure her legs against injury. There are mainly three types of insurance policies sold:

1. Life Insurance

A life insurance policy provides that the insurance company will pay a certain amount when the person dies. This may be paid in a lump sum or in installments to the beneficiary [people named by the policyholder to receive the death benefit]. Some types of life insurance policies also enable policyholders to save money. Such policies have a cash value. A policyholder may borrow money against the cash value or surrender the policy for its cash value.

Annuities

These are savings plans sold by insurance companies to provide a fixed and regular retirement income. If the annuitant [owner of the annuity] dies before receiving the guaranteed number of payments, the insurance company must continue the payments to the beneficiary.

Dividends

Some insurance policies refund part of the premiums in the form of dividends. Such policies are called participating policies. An insurance company pays dividends if the money it collected in premiums exceeds the amount needed to pay benefits and administrative costs. Dividends may also include a share of the profits the company earned on investments made with premium funds. Dividends are most commonly paid on life insurance.

2. Private Health Insurance

Health insurance pays all or part of the cost of hospitalization, surgery, laboratory tests, medicines, and other medical care. The rising cost of medical care has increased the need for adequate health insurance. You could suffer a major financial hardship without such coverage, especially in case of a serious illness or accident.

Dental insurance is one of the fastest-growing types of health insurance. It helps pay for a wide variety of dental services.

3. Property & Liability Insurance

Individuals and businesses buy property and liability insurance to protect their assets against financial loss. Property insurance provides direct compensation if a policyholder's possessions are damaged, destroyed, or lost as a result of perils. Liability insurance protects individuals and businesses against possible financial losses if their actions result in bodily injury to others or in harm to property owned by others.

The main types of individual coverage are:
o Homeowners Insurance
This provides protection against losses from damages to an owner's home and its contents.
o Automobile Insurance
This is the most widely purchased and most important kinds of insurance. Drivers are legally responsible for any costs arising from accidents they cause. This insurance protects a policyholder against financial losses from accidents.

Financial viability of Insurance Companies

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

How Insurance Is Sold

Most insurance companies sell policies through agents. Exclusive agents are employees of an insurance company who sell only that company's policies. Independent agents sell policies for several companies.
David Dugan is a contributing author to the insurance information site http://insurance.divinfo.com/, a site that has information on auto, homeowners, life, pet and many other kinds of insurance as well as the retirement site http://retirement.divinfo.com

Buying and Collecting Ancient Roman Coins....

Ever wondered what Emperors like Constantine the Great, Nero or Julius Ceaser looked like and wanted to hold something in your hand that may have been held by one of these Emperors or someone living during that time.

If you are a collector with a low budget, particularly a coin collector then you should seriously consider taking up the hobby of Roman coin collecting.

There are a number of reasons why I prefer collecting Roman coins then other antiques including other ancient coins. Firstly there are a wide variety of Ancient Roman coins to suite your tastes. This is largely due to the vast time and area that the Roman Empire covered. From as early as 27 BC to 496 AD there were many millions of coins minted spanning a large area of the globe featuring coins that reflect the time from when they were created.

Also its great to have a real portrait of an Emperor in your possession. Many emperors came and went and it was customary to inscribe the portrait of the emperor on the coins that were minted during their reign.

Roman coins are the most inexpensive of all Ancient coins. Other ancient coins include for example Greek, Barbaric, Celtic, Parthian, Nabathaean, Islamic, Indian and Chinese. This can come as a surprise to many considering how ancient these coins are. Yet they can be even cheaper then some of the modern day coins that coin collectors collect. There are two main reasons for this. Firstly as already stated the Roman empire was large and so there were a lot of coins minted. Many Roman coins are therefore not as rare as many believe. Another reason is that there are few collectors of ancient coins then modern coins. This makes the demand for them lower.

There are also less forgeries of Roman coins then other coins particulary modern day coins. This is largely due to the fact that they are less rare and expensive.

Another reason Roman coins are great to collect is that they do not just have historical value but also artistic value. These coins were cleverly and beautifully crafted and tell a story from the time and area that they were minted.

Unlike most coins today Roman Coins had intrinsic value being comprised of precious metals worth many times more then their weight in that metal. These precious metals include Gold, Silver and Bronze. This can make the coins more special and increase the value of the coin should you choose to collect the more expensive Roman coins.

Factors that determine a coins worth
The price of a coin ranges significantly due to a number of factors. The two biggest factors being the condition the coin is in and the grade of the coin.

The condition of a coin can depend on how corroded the coin has become while it has been in the ground or how it was stored. The grade of the coin is determined by how the coin was minted when it was manufactured. These coins were minted by hand and so do not always entirely circular or detailed. A coin can be less detailed and of less value if it was struck by dies that were worn down. Determining the grade of a coin can be tricky and sometimes you simply have to go with how appealing and detailed the coin is to your own eyes.

Another factor that determines a coins worth is its rarity. Surprisingly rarity is less of a factor in determining an ancient coins worth then modern day coins. Modern day coins will be worth a lot if there were few minted, or few in circulation. Given the large number of collectors this is more of a factor with Modern coins. This would drive up the cost of a rare coin if collectors are trying to complete their collection.

With ancient Roman coins there were a larger number and variety created and so each collection will be different and rarity will be considered less of an issue. There are rare ancient coins of course. Some emperors were not around for long enough to have many coins minted during their reign and hence they will be harder to find and cost more.

Sellers of ancient coins will often use terms such as scarce, rare or very rare to describe a coin. Just because someone describes a coin as rare does not mean that it actually is. Unfortunately, some sellers will attach this label to ancient coins to attract novice collectors who do not know better. If someone describes a coin as rare or scarce does the person explain why the coin is rare? Does he give it an RIC number and explain the variety? If you are new to collecting ancient coins, you should not jump on a coin just because is it described as rare.

If you build up a collection of ancient coins you will be able to tell for yourself if a coin is uncommon, scarce or even rare.

Price of different Roman coins
Truly rare coins that are sort after will not sell for much less than $100, and often for much more. Hence, a coin of Constantine described as rare with an asking price of just a few dollars is very unlikely to be so. There are sellers on eBay who claim that their coin is rare, or they have only seen one in 10 years, but there is another one just like it being offered on eBay by someone else.

To give you an idea of the variation of price for Roman coins, for $5-10 you can buy decent quality coins issued under a number of the late-3rd and 4th century AD emperors.

For about $10-20, you can collect a coin from the more famous 1st and 2nd century emperors, and of many later ones in very nice condition. In fact, for $20 a coin, you can quite easily assemble a collection of more than half of the emperors (over 50) in very nice condition with clear portraits and readable legends.

On top of this, there are numerous varieties available for each emperor. Of course, just as with modern coins, you can buy ones that cost much more; ones that are in better shape or are more scarce, but if you are just interested in decent coins and history then you may not have to look any further.

Once in a while you might want to spend a bit more on a scarce emperor, or something that really arouses your interest, or a coin in truly nice condition. But then again, you might be attracted to cheaper coins that are not fully cleaned or legible, which can add to their mystery.

So, to summarize, buy coins that you find interesting and that appeal to you. No two coins of the same type will be exactly the same; choose the one that you think is better value for your money. Look around to see if a nicer looking coin might be also affordable if that is what you really want, and hence save yourself the trouble of replacing it later or regretting that you bought it in the first place. Do not worry about rarity too much!
Ashley is an avid collector of Ancient Roman coins and provides general advice on how find genuine Roman coins for sale on Online Auctions.

Article Source: http://EzineArticles.com/?expert=Simon_Ashley

Stock market investment strategy ....

1.Gathering information about the broker activity with the services and  the fees charged.
2.Development of a portfolio of shares
3.The broker company will open an account in the stock market registry in the name of its new customer  where the portfolio will be maintained and the broker will operate according to customer's claim.

Money, Friend or Foe?

Is money a friend or a foe? I dare say neither. Money just is. It is a medium of exchange (nothing more and nothing less) that our society has elevated into a determination of status.
Much of western civilization has determined that the size of one's bank account determines the value of that person. You hear much to the contrary, but as the saying goes, actions speak louder than words.
Next Thursday, we in the United States usher in the start of the holiday season with our celebration of Thanksgiving. The next 30 - 45 days will be filled with good cheer and best wishes and thoughts of "Peace on Earth" and "Good Will to Men". Charities find the next 6 weeks to historically be their best season in receiving monetary donations. The homeless are given shelter as churches and synagogues seek special donations for Christmas and Chanukah gifts for children. Everyone of every faith prays for peace and understanding.
But what happens the other 46 weeks of the year? Oh, sure, the charities and foundations are still there. But how do we as a society treat them and those with less or no money? How do we as a society treat those with less status?

According to the most recent statistics I have seen, the numbers of people without any health care coverage in the United States are approaching 46 million. Why? Unemployment in the United States is officially over 6%. But what is the real figure? Millions have been out of work so long, the government doesn't even count them anymore. If one has become so discouraged in not being able to find employment and so he/she gives up for a while, that person isn't counted anymore as being in the workforce. I have seen estimates that put the actual unemployment figure at close to 10%.

And this doesn't apply to the United States alone. Different countries, different societies have different ways of handling this. But, as a general rule, Western civilization has determined money to be a determinative of one's value.

And, this is not good. Yet, contrary to where you might think I am going, money is not evil. Money is good. Some think the Bible states that money is the root of all evil. It does not say that - anywhere. The Bible does say, "the love of money is the root of all evil".

And the Bible does not refer just to "money" when it calls the "love of money" the root of all evil. "Money" serves, here, as a euphemism for material goods, selfishness, even thoughts and ideas.

When material items, such as money, and thoughts and ideas become more important than the person and people in general, we are entering upon evil. In the movie "Wall Street", Gordon Gekko, played by Michael Douglas, states in one scene that "Greed is good".

Gordon Gekko was wrong. Greed is evil. I am not a linguist, but I dare say that the statement in the Bible that "The love of money is the root of all evil" would be better translated as "Greed is the root of all evil".

The "love of money" being the root of all evil, and hence taken by many people as money, itself, being the root of all evil has caused many of us to have deep seated thoughts of hostility towards and fear of money and financial riches. Nothing can be further from the truth, and this underlying hostility towards money has probably caused untold heartaches and poverty and hopelessness in our world.

If you are having difficulties in achieving your financial and material goals, your attitude towards money may be what is holding you back.

Ask yourself these questions:

What does money mean to me?

What are my core beliefs about money?

What did I learn as a child about money?

What do I think it really takes to earn and acquire financial abundance?

Ask yourself these questions and ponder your answers. Do you have answers such as the following?

 Money doesn't grow on trees.

 We can't afford it.

 God loves the poor.

 I just need enough to live.

Or do your answers resemble these?
With enough money, I can give a good education to my children.
Money enables me to travel and enjoy God's creation.
Money relieves the stress from day to day living.
With money, I can help all those who are less fortunate.
If you find that your beliefs about money are holding you back from achieving and empowering your dreams, then you need to change your beliefs immediately.
Money is not the problem. As with many things in our lives, it is our attitude that is the problem.

Teaching Your Children About the Value of Money.....

We take it for granted that children know how money gets into our wallets. The tips below will guide you through teaching your children the value of money.

Now I'm not referring to the value of stocks and bonds, compounding interest, or the current market value of a U.S. dollar.

What every child should be taught at some time, is: the purpose of jobs (how we earn money), saving for goals (how to save money), limit needless spending (how to budget).

It's up to you to decide when and at what age it is appropriate to discuss the following topics. But keep in mind that if you don't teach them the skills to make educated, responsible decisions with their money, you will be holding back a valuable lesson that should be taught. Learning how to successfully manage money is a skill they will have for life.

Where To Start

Don't assume your children know the meaning or purpose of a job, bills, banks, etc...

Let them see you pay your bills. Explain to them how you have 'X' amount of dollars per month to pay for everything. Point out the dangers of getting into debt (credit cards). Explain that ATM machines are not magic money dispensers that give you as much money as you need, for free.

Learning comes from experience. Just talking about money will not get the job done. Learning how to earn, save and spend money appropriately comes from real life experiences.

If your children do not have an allowance already, think about starting one. Only when they have their OWN money to manage, can they put your lessons into practice.

When you are discussing allowance with your children, relate it to your own life. Explain to them that when you want to buy something, you must first work to earn money, then save enough money in order to purchase it ie: car, house, clothes. Tell them that if you don't go to work and earn money, there's no way you can afford to buy what you want.

You can then explain to your children that if they want to buy a new toy, they must earn the money in order to buy it.

It's Up To You

You can design your childs' allowance and chores however you see fit: weekly, bi- weekly, monthly, pay-per-chore.

One method that's effective is designating 'X' number of chores, for 'X' number of dollars per week.

For example: "Johnny. You will earn $5 a week if you do these jobs/chores: water the lawn (twice), take out the garbage, vacuum the house (twice), and feed the cat everyday."

It's up to you to develop a list of chores that can be done around the house, and an appropriate allowance amount to go with it. In other words, you shouldn't have your child painting the whole house for a quarter.

You should also be sure and make the jobs/chores age appropriate. A twelve year old will be able to do more than a seven year old, so take this into account when thinking of chores.

Now don't confuse allowance, with the basics. What are the basics? Keeping their room clean. Doing their homework. These are jobs that should be done without question. Period.

Once You Start

When your children earn their allowance for the first few times, they will want to immediately go and spend it. Fear not. This should be expected. Here is where you can start to teach your children.

Sit down with your children and talk about the "things" they want to buy. Have them prioritize their items on a list, in order of importance. This list can be considered their "Goal Sheet" - the reason they are saving their money.

Have them keep this list in their wallet/purse/piggybank, so they will always be able to look and see what they are saving for. You should also keep a copy of this list just in case they lose it, or want to purchase something that's not on it.

The next time you are in a store, and your children want to use their money to buy something, first ask them: "Do you have your wallet/purse that has the money you've been saving?".You can then ask them if that particular item they want to buy is on their list.

Asking these questions will get them thinking about the items importance. Is it more important than the other items on their list? Let your child make the decision whether to buy or not.

Regardless of what you say, more than likely your children will make the purchase even if the item is junk. That's ok! This is a lesson your child must learn. Only when the initial thrill of the toy wears off, or when your child realizes that the other items on his/her list were more important, will they begin to understand the value of their money.

Conclusion

These are only some of the possibilities you might want to look into. Regardless of what you can take from this article, adapt it so it fits into your family lifestyle.

Money management is a learned skill that comes from real experiences. It is very important that children learn the value of money and the role that it plays in our lives. Teach them how to make smart, educated buying decisions. Stress the importance of setting priorities and working to achieve that goal.

Once your child achieves one of his or her goals, they will understand what it takes to be successful. They will know how to budget their money and limit unnecessary spending in order to buy what they REALLY want or need.
Gregory Thomas has been writing effective money-saving tips for SavingSecrets.com for over six years. Hop on over and you'll find FREE money-saving articles, a monthly newsletter, and even a FREE Ebook download just for stopping by! http://www.SavingSecrets.com

Article Source: http://EzineArticles.com/?expert=Gregory_Thomas

Stock market investing...

It is a risky way to invest your savings but gains may be large and rapidly obtained.
Anyone can invest in stock market no matter if the person is a native or a foreigner.Stock market transactions are made through a broker company which must be member of the stock association.

Have you ever asked yourself why is gold so valuable?

Gold is precious because of the following :
- is a rare metal(throughout world history have been drawn about 88,000 tonnes of gold.Annual extraction ranges around 1,500 tonnes.).If all the gold in the world would be gathered together would form a cube with sides of less than 17 meters.
- is very resistant to the action of chemicals.
- gold retains its brilliance in time.
- difficult to extract
- can be processed easily
- is malleable and ductile
- from an ounce of gold (31.10 grams) could be processed a string of 80 km or a sheet of one square meter gold.
- in the last 38 years the gold price rose continuously from $ 65 an ounce to about $ 1,300 today.Next year is estimated to grow to $ 1,600 per ounce and in a short time (approx.5 years) $ 2,300 per ounce.
Gold rated as 24 carat is practically 100% gold (pure gold) but only pure gold alone can not be used for the manufacture of jewelry because it isn't resistant enough.The alliance with nickel and silver creates white gold , or with copper and nickel creates pink gold or red.
in Europe is most appreciated the 18 carats gold and 14 carats in the U.S..

My opinion on Zeitgeist Moving Forward ...

Hello everybody , this morning was very cold here where I live (eastern Europe
) so I watched the last part or the latest edition of the film series Produced by Peter Joseph , Zeitgeist, on youtube ( link: http://www.youtube.com/watch?v=4Z9WVZddH9w )
"Zeitgeist Moving Forward is a film that had it's theatrical premier on January 15th, 2011. This third Zeitgeist movie was released in theatres in 60+ countries and in 30+ languages around the world with most locations selling out."
The film is exceptionally well done. The ideas presented force people to think critically about the world, which is precisely what we should all be doing.
When one looks critically at the problems that surround us, it is easy to see that our problems are not political. Our problems are all technical and have technical solutions. ZMF presents these scientifically-based solutions in a way that cannot be rationally argued with.
My only criticism is that the film is a little long and little too technical for the general public. I would like to see a "first-step" film that presents the ideas in a shorter and easier to follow form.
But in the end it is a very good documentary wich opens a new perspective on the society we are living in and presents us the outrageous and harsh reality of the corruption of the human kind.

The impact of money on the society...

At a fairly young age (6-8) I learned that money was very important because my parents would tell me about how important it is to save money and not to waste it. They also would explain monetary limits to me (like how we can't just pack up one day and go on a 3 week safari in Africa because we don't have the excess money for it). as i grew older, my parents continued to advise me to spend wisely.
I also hugely learned about the impact of money in the last several months as I'm applying to colleges. I applied to some expensive colleges. Now, the way my scholarships/financial aid work out will be one factor in deciding where I go.
Well i believe money are important for every person because they help you survive in the contemporary society , but we can t rely only on them , making the purpose of our life a run for wealth.I totally disagree with the statement that happiness means to be reach, let's just have look at how many suicides occur in the wealthier social classes , but i tend to agree that money is just a contribution to happiness.
Western society revolves around money and possessions and that is probably why people are so depressed and stressed.
You look at some African countries where they have no money and the people are so happy with their lives even though they have nothing ! It can teach us an important lesson.
I guess society is to blame, from childhood we are taught to achieve and to get good jobs so that we can have nice houses etc, but I think instead we should be taught to concentrate on enjoying life, primarily.
For most of us, money causes stress, not happiness. Unfortunately money is important, sadly, but it should never be more important than "happiness" and really enjoying our lives and helping others.

How do banks make money...

I believe everyone has asked himself at least once in their life this question.Well the the banking system is not that complicated , every person who posses at least a general education can understand it.So let me explain it to you as simple as I can.
       
In simple terms Banks make their money from lending out money to consumers and businesses in need of loans by using depositor funds such as savings accounts and checking accounts. The way the bank makes a profit is by charging an interest rate for those seeking loans. The bank offers free checking to induce more depositing customers so they can in return lend out more money ultimately making more profits.But because depositors need their money from time to time they have to keep part of it in reserve to be able to pay out withdrawal requests.. The percentage they have to hold onto in reserve varies depending on the type of account.In more simple terms banks make money by lending money at a higher interest rate than they pay on deposits. The gap is the profit margin.