Cutting Costs

Everyone would like to cut insurance costs without cutting out the policy. But is this possible to do? Yes, it is. And some respected insurance men say that this is really what you ought to do—in some cases.

These men advise the public to keep their whole life insurance policy six or seven years until the cash values are substantial. Then they advise lapsing the policy without taking out the money. By law, extended term insurance will keep one covered for as many years as specified in the table printed in one’s whole life policy. You will recall the case of the New York widow who collected $6,000 on the death of her husband from his lapsed policy.

Extended term insurance can run for many years if one’s policy is seven years old or older. A person with terminal illness, for example, could utilize this suggestion to help pay medical bills with saved premiums. But there are also other ways to cut insurance costs.

Is a person’s policy rated? For example, if he has been paying a penalty for being overweight and he has been normal weight for a year or more, he can ask to have the rating removed. This applies to any rated physical condition or handicap that has been corrected. It is worth a try.

Another way to cut insurance costs is to request a “reduced paid-up policy.” Under the table of cash values, one’s policy will show how large a paid-up policy one is presently entitled to. Of course, it will not equal the face amount of the contract. That is why it is called “reduced” paid up.

If you are shopping for life insurance, first estimate your family Social Security benefits should you die. They could equal many thousands of insurance dollars. Then look around for inexpensive group coverage. Try your employer or trade union. Postal workers, teachers, nurses, lawyers, electrical engineers, for example, can buy excellent group coverage at reduced rates.

For those living in New York, Connecticut or Massachusetts the answer may be savings-bank life insurance. This costs less because one is not paying for the services of a licensed insurance agent.

Once a person gets the kind of life insurance that he wants, he should form the good habit of paying premiums within the thirty-one-day grace period. If he is late and the policy lapses, the company is obliged to reinstate it up to three years after it has lapsed, but only if he proves to be in good health.

Another disadvantage in letting a policy lapse is that each reinstatement turns the clock back to the start of the two-year contestable period. After holding a policy for two years, it becomes incontestable. However, prior to the termination of the two-year period, any important omission uncovered as a result of a claim could void the contract. So, for such reasons, it is important not to let a policy lapse.

Life insurance should be treated as valuable property similar to a savings account, stocks or bonds. It takes some of the economic sting out of death. It can serve a useful role.

Auto insurance

The average price of an automobile in the United States increased about 35 percent in the last four years. The cost of gasoline went up about 50 percent. Automobile insurance rose sharply, over 50 percent in many areas, as inflation made auto repairs and medical expenses more costly.

Auto insurance rates for those under 25 years of age are high. This is so because they were involved in well over one third of U.S. highway deaths last year, yet they compose only about one fifth of the drivers. The chances of this age-group having a fatal accident are more than two thirds greater than for those over 25. About one fourth of U.S. drivers had an accident of some kind last year, but of drivers under 25, 42 percent had accidents. 

            INSURANCE

 A Business With a Long History

John’s carpentry shop was the best built and best stocked in his community. It was his pride and joy. But one night fire broke out. In a few hours, his beautiful shop was reduced to smoldering ashes.

EARLIER, John had thought about buying fire insurance with some of the funds that he put into building his shop. However, he reasoned: ‘I’m very careful. And if I never have a fire, insurance will be a waste of money.’ But there was a fire. If John’s shop had been insured, very likely he could have rebuilt it. Without insurance, he could not.

What Is Insurance?

Insurance is not necessarily an investment from which one expects to get one’s money back. Nor is it gambling. A gambler takes risks, while insurance offers protection against risks that already exist. Insurance is a way to share risk with others.

The Origins of Insurance

Insurance has existed for thousands of years. A form of credit insurance was included in the Code of Hammurabi, a collection of Babylonian laws said to predate the Law of Moses. To finance their trading expeditions in ancient times, shipowners obtained loans from investors. If a ship was lost, the owners were not responsible for paying back the loans. Since many ships returned safely, the interest paid by numerous shipowners covered the risk to the lenders.

It was likewise in a maritime setting that later one of the world’s most famous insurance providers, Lloyd’s of London, was born. By 1688, Edward Lloyd was running a coffeehouse where London merchants and bankers met informally to do business. There financiers who offered insurance contracts to seafarers wrote their names under the specific amount of risk that they would accept in exchange for a certain payment, or premium. These insurers came to be known as underwriters. Finally, in 1769, Lloyd’s became a formal group of underwriters that in time grew into the foremost market for marine risks.

Insurance Today

When people buy insurance today, they are still sharing their risk. Modern insurance companies study statistics that show the frequency of past losses—for example, losses from shop fires—to try to predict what losses their clients will experience in the future. The insurance company uses the funds paid by many clients to compensate the clients who suffer losses.

Do you need insurance? If so, what kind of insurance is right for your circumstances? And whether you have insurance or not, what precautions can help you to cope with life’s risks?

Do You Need Insurance?

IN SOME lands certain kinds of insurance are compulsory. In others, most kinds are practically unknown. In addition, the cost of insurance and the type of coverage provided vary widely from country to country. But the fundamental principle of insurance—sharing risk—remains the same.

Naturally, the more property a person owns, the more he has to lose. Similarly, the more family responsibility a person has, the greater the impact if he or she dies or becomes physically disabled. Having insurance can alleviate one’s concern about the possibility of suffering a loss of property or a disabling accident.

Yet, is it wise to spend money on insurance even though a claim may never be made? Well, is keeping a spare tire in the car a wasted investment, even if the tire is never needed? The sense of security to the car driver may make the expense of the extra tire worthwhile. While financial compensation cannot make up for certain losses, it may compensate for other losses.

What types of loss do insurance policies cover?

Types of Insurance

Much of the insurance purchased by individuals falls into the categories of property, liability, health, disability, and life insurance.

Property insurance: Insuring against the loss of property—home, business, car, or other possessions—is among the most common forms of risk management. This is the insurance that John, mentioned in the preceding article, decided not to buy for his carpentry shop and tools.

Some home-insurance policies include coverage of certain items inside the home. If you buy this type, it is wise to make an inventory of your insured household possessions, if possible including photographs or a videotape. This inventory along with any appraisals or purchase receipts for the items should be kept in a safe location outside the home. Having these records could make settling a claim much easier.

Liability insurance: Anyone who drives a car this type is called auto insurance, owns a home or other real estate, operates a business, or employs others runs the risk of liability for an accident. And that accident may result in property damage or injury or death to another person. The car driver or the owner of property or a business may become liable to pay for property repair or for the medical treatment or even the pain and suffering of another. In many countries employers and drivers are required by law to carry liability insurance to help pay these expenses. Even where insurance is not a legal requirement, a driver, property owner, or employer may be held legally or morally responsible to help victims of an accident or their families.

Health insurance: Many countries have some form of state-sponsored insurance that provides such benefits as pensions for seniors and medical care. Even where this is the case, however, such insurance may pay only a portion of medical expenses or may pay for only certain ones. Some individuals, therefore, obtain additional private insurance to help them pay the remainder. In many places workers may receive health insurance as a condition of their employment.

Some health-care plans, including managed care arrangements and health maintenance organizations (HMOs), provide comprehensive medical care for a set monthly or annual fee. These organizations endeavor to lower costs by providing less-expensive medical care and by promoting preventive medicine. However, in an HMO, a patient’s choice of doctors or treatment may be more limited than with traditional health insurance.

Disability insurance and life insurance: Disability insurance provides some income if a person is injured and cannot work. Life insurance provides financial assistance to a person’s dependents in case of his or her death. Such insurance has enabled many families to pay off outstanding debts and carry on their routine of life after the injury or the death of their main breadwinner.

What About Body Piercing?
‘When I first saw people with lips and other parts of their body pierced, I thought “Wow! That’s special.”’—Lisa.
LISA is not alone. Increasing numbers of young people are wearing rings and studs through various body parts, even their eyebrows, tongue, lips, and navel. It’s a practice called body piercing.
A 16-year-old named Heather is eager to jump on the bandwagon. She is convinced that a ring in her navel will look “absolutely awesome.” Nineteen-year-old Joe, however, already sports a gold barbell through his tongue. And another young girl chose to have her eyebrow pierced because she wanted something “highly visible” that would “freak people out.”
The idea of attaching jewelry to the body is hardly new. Back in Bible times, a godly woman named Rebekah wore a nose ring. (Genesis 24:22, 47) When coming out of Egypt, the Israelites wore earrings. (Exodus 32:2) It is not known, though, whether such jewelry was attached by means of ear and nose piercing. Faithful slaves did have their ears pierced, however, as a symbol of their loyalty to their masters. (Exodus 21:6) Piercing has been prominent in other ancient cultures too. Aztecs and Maya pierced their tongues for spiritual reasons. Lip perforation is still widespread in Africa and among South American Indians. Insertion of decorative objects through the nose is common among Melanesians and inhabitants of India and Pakistan.
Until just a few years ago, piercing in the Western world was generally limited to women’s earlobes. But now teenagers and young adults of both sexes are wearing jewelry on just about every part of the body to which it can be attached.

Why They Get Pierced
Many get pierced because they feel that it is fashionable—the in thing to do. Others feel that it will enhance their appearance. Certainly, the fad has been fueled by the use of body jewelry by top models, sports stars, and popular musicians. And for some youths, piercing also seems to serve as an expression of independence, a quest for individuality, a way for them to say that they are not like everybody else. Observes columnist John Leo: “The yearning to irritate parents and shock the middle class seems to rank high as a motive for getting punctured repeatedly.” Dissatisfaction, nonconformity, defiance, and rebellion seem to drive this need for self-expression.
There are even those who get pierced to meet deep psychological or emotional needs. For example, some youths feel that it will boost their self-respect. Some victims of child abuse have seen it as a means of claiming control of their bodies.
Health Risks
But is all such body piercing safe? Many medical practitioners say that some of it is not. Certainly, do-it-yourself piercing is hazardous. And going to a so-called professional piercer may have its risks. Many lack extensive training, having learned their craft from friends, magazines, or videos. As a result, they may not use sanitary techniques or even understand the risks of piercing. Also, many piercers lack an understanding of anatomy. This is no small problem, since making a hole in the wrong place can cause excessive bleeding. Hitting a nerve can cause permanent damage.
Another serious risk is infection. Unsterile equipment can transmit such lethal diseases as hepatitis, AIDS, tuberculosis, and tetanus. Even when sterile techniques are used, care after the procedure is still essential. A navel piercing, for example, is subject to irritation because it is constantly rubbed by clothing. It can thus take up to nine months to heal.
Doctors say that piercing the cartilage of one’s nose or ears is more dangerous than piercing an earlobe. A newsletter from the American Academy of Facial Plastic and Reconstructive Surgery explains: “Multiple earring holes placed around the top of the ear are a particular cause for concern—serious infections can cause the loss of the entire top curve of the ear. Nose studs also are risky—an infection in this area may involve nearby blood vessels and spread to the brain.” Concludes the newsletter: “Ideally, [piercing] should be limited to the earlobe area.”
Other hazards are ugly scarring and allergic reactions to piercing jewelry. If rings in very sensitive areas, such as the breast, get caught or pulled by clothing, the piercings can easily tear. Scar tissue formed in the breast of a young girl can block milk ducts, and if she does not seek treatment, she may find it difficult or impossible to nurse a baby in the future.
The American Dental Association recently dubbed oral piercing a public health hazard. Additional risks of piercing the mouth area include choking after swallowing jewelry, numbness and loss of taste in the tongue, prolonged bleeding, chipped or fractured teeth, increased salivary flow, uncontrolled drooling, gum injury, speech impediment, and difficulties in breathing, chewing, and swallowing. When a young woman named Kendra had her tongue pierced, it “swelled up like a balloon.” To make matters worse, the piercer used a stud designed for the chin, and it cut into Kendra’s tongue and ripped through tissue underneath. She almost lost the ability to speak.
God taught his people the Israelites to respect their bodies and to avoid self-mutilation. (Leviticus 19:28; 21:5; Deuteronomy 14:1) And while Christians today are not under the Mosaic Law, they are still encouraged to treat their bodies with respect. (Romans 12:1) Does it not make good sense, then, to avoid unnecessary health risks? Nevertheless, there are other factors you should consider besides health.

WHY DO WE YAWN

Scientist cannot explain why everybody on the planet yawns-in most cases,several times a day. Even babies in the womb do it. So do, hedgehogs, ostriches, snakes, and fish. There are lot of theories, often contradictory, but none satisfy all the researchers. Many scientists have proposed that an explanation for this gulp of air, lasting six seconds on average, is to augment the brain’s oxygen supply. Yet “so far, researchers haven’t found evidence supporting this suspicion,” says Science News. New studies on rats seem to seem to suggest that “a yawn may be a thermostat, cooling an overheated brain.” But no one really knows. 

A GREEN WALL ACROSS AFRICA.

A pan African project, launched by the African Union in 2007, aims to halt the desert’s advance with a green wall. From Senegal in the west to Djibouti in East, 11 countries are planting millions of seedlings of appropriate species, in an effort to create a swath of vegetation 7,600 kilometers long and 15 kilometers wide. “We have to plant species which offers no incentive for logging,” says Aliou Guisse, professor of plant ecology at Cheikh Anta Dioup University in Dakar, Senegal. It is hoped that the reforested areas will also serve as a nature reserve and provide sustainable resources for local communities.