The History of Travel Insurance

Sometimes it seems that insurance cannot be more than a hundred years old … after all, before 1900 there were few people that owned cars, most built their houses by hand and did not take out an enormous bank loan for it, and there was almost no overseas travel (after all, many people had to walk for a full day just to get to the nearest town!). In fact, insurance in general (and even travel insurance) has been around for literally thousands of years. We travel from ancient Mesopotamia to the 21st century, exploring how insurance has changed.

What is Insurance?

The concept of insurance is that many people pay a relatively small amount to a central institution, for protection from financial loss in the event that an undesired event occurs. With regard to travel insurance, travelers pay a small premium before their trip, and can get protection from the loss that would be incurred if they became sick overseas, were the victim of crime, or inadvertently caused damage to someone else’s property, as well as a range of other circumstances.

The First Insurance Policies

These were inked 3000 years before the common era (BCE), as far as we know, and involved Mesopotamian merchants paying caravan operators a ‘risk surcharge’ to protect their goods in the event of them being damaged or taken. In a way, this was travel insurance for your luggage! In 1750 BCE the Code of Hammurabi created the first maritime insurance, with the terms ‘bottomry’ and ‘respondentia’ meaning ‘protection against loss of hull’ and ‘protection against loss of cargo’, respectively.

Early modern insurance

In 1574, Queen Elizabeth I granted the right to establish an insurance office in the Royal Exchange Building to a man named Richard Candler. A quarter century later, in 1601, the first recognised legislation relating to insurance was formalised, the Assurances Act. The Act stated “By means of which Policies of Assurance it cometh to pass upon the Loss or perishing of any Ship, there followeth not the undoing of any Man, but the Loss lighteth rather easily upon many than heavily upon few, and rather upon them that adventure not than those that do adventure.”

In 1666 the Great Fire of London occurred, and the idea of fire insurance sprang up not long after. By the 1690s, the British insurance companies had realised it would be smart to protect their investment against another such fire … and formed the first professional fire brigades!

The Industrial Revolution

During the industrial revolution, Benjamin Franklin started the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. This insurance agency refused to insure houses when the risk of being decoyed by fire was too great – all wooden houses were rejected.

Modern Insurance Policies – The Effect of the Internet

Today, you can insure just about anything you like. While common insurance policies include your house, car, life, travel, income and possessions, some people have also been known to insure things like their crossed eyes (Ben Turpin) and their sense of humor (Rich Hall).

Insurance nowadays, from home to travel insurance, depends on you telling your insurance company of any individual circumstances relating to your risk of having a certain adverse event happening to you, the company using statistical data to assess the risk, and setting a premium (monthly or yearly payment) for you to pay in order to be insured against certain things happening.

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Health Revolution

We don’t need Health Reform. We need a health revolution.
We hear the cry for health reform, and affordable health insurance. However that is not the real problem. The world health system is based on theories that have been proven false. That is why we have such a health crisis in our world.

The entire system is designed around the mistaken notion that if you create an opposite disease, you will counteract the disease you are fighting. So in an effort to fight disease they give sick people (who are overloaded with toxic chemicals) highly toxic chemicals, in an effort to fight disease.

Surgeons do much the same thing. Something in the body is malfunctioning. So they cut it out, to save the whole. It is a noble thought. However why not remove the cause.

If your water line brakes in your home, do you try to repair it without turning off the water? No, you turn off the water supply, repair the damage, then you turn the water back on.

Symptoms are like the leak in the pipe. They are the evidence of a problem with the body. Finding the valve and turning it off is like finding the cause of your disease and removing the cause. Once your stop causing disease, your body can heal itself.

If you have a splinter in your finger, would you smash your big toe to make your finger stop hurting? No, you would pull the splinter out.

If your body is overloaded with toxic chemicals, does it make sense to dump more toxic chemicals into your body? Would it not make more sense to help your body remove the toxins.

No matter what you hear on TV commercials, only the body can heal.

To eliminate the Health Care Crisis in our world we have to STOP fighting symptoms. We have to START removing CAUSE.

The ancient Chinese doctors used to charge only when the patient was well. If the client got sick they used to charge nothing to make them better.

Think about it. We spend trillions of dollars on health insurance, and the fight against disease symptoms.

Would it make more sense to pay the doctors a monthly fee when we are well to teach us how to stay well, then make them absorb the costs if they fail. If their expensive treatments and magic potions were their expense, not the patients, don’t you think they would try harder to get it right.

As long as we pay them for failure, they will continue to fail. If the only way your doctor can make money is if you get sick, what incentive do they have to keep you well?

We have created a monster. The majority of our people are blinded to the truth. You cannot be poisoned into health. You simply cannot be poisoned into health. No way. No How, It simply is not possible.!

The only solution to our health crisis is to teach people how to live so they do not create disease. Health care and the productions of disease causing products together are the largest industries in the world.

Governments are funded by business. There is no incentive for our government to step in and make a difference. They are willingly blinded by their need for money for all their programs.

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All You Need to Know About Auto Insurance

This is the twenty first century and it is no wonder that there are thousands of motor vehicles whirring past us in a day. The real reason for such a turnaround is the automobile revolution which brought in the large scale production of vehicles. Though automobile revolution has benefited the mankind in a great manner, it is also a reason for the hundreds of road accidents that is happening each day across the globe. This has resulted in the birth of a concept called as the automobile or car insurance which protects the vehicle as well as the owner against the losses incurred in an accident by providing monetary benefits.

In case any of you guys have been searching for valuable information about the concept of car insurance then your search ends here because I have provided all information regarding car insurance in a simple manner. As said before in the earlier passage, car insurance provides monetary benefits to all those owners whose vehicles are insured because it is their liability to do so. This is the actual concept behind vehicle insurance. If you have insured your vehicle, then you have every right to claim money from your insurance company (of course certain conditions have to be satisfied before claiming).

The conditions for claiming include various factors. Some of the important factors that have to be satisfied in order to claim the car insurance without a glitch are that you will have to prove that the accident was genuine and not deliberate, the driver was in a sound state of mind during the accident i.e. not drunk/unconscious etc. There are other factors also which the company will consider before giving the claim and they are the past driving record of the driver, the condition of the car before the accident etc.

The company will pay for all the losses of the owner in case of an accident but then what about the profits of the company? This is where the actual concept of car insurance comes into play. You will have to pay certain amount of money called premiums for the insurance of your vehicle on a yearly basis. The premiums once paid to the company will not be repaid back to the vehicle owner even after the period of insurance ceases. So the company is never under a loss even if there are ten cases of accidents in a year and has to take the liability of these ten accidents.

The important factors that decide on the amount of premium to be paid by the owner and also the amount of coverage that the owner will receive are many. The important factors are the condition of the vehicle (a good vehicle always has better coverage and lesser premiums than a badly maintained vehicle), age of the driver (younger drivers are charged less than elderly drivers) and purpose of the vehicle (sports vehicles are charged higher premiums and insured at lesser coverages than a general utility vehicle).

I would like to conclude my article by providing you the six basic coverages that are provided by almost all insurance companies. They are bodily injury liability, property damage liability, collision, comprehensive, medical payments and uninsured motorist. I hope my article would have helped you gain considerable knowledge about car insurance and also the importance of availing a car insurance.

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Financial Book Review: The Bank On Yourself Revolution by Pamela Yellen

“The Bank On Yourself strategy gives you a rare combination of guarantees, safety, liquidity, and control. Your money grows by a guaranteed and predictable amount every year, and that growth gets better every year you have it,” Pamela Yellen- “The Bank on Yourself Revolution”

Several years have passed since the publication of “Bank On Yourself,” Pamela Yellen’s first attempt at articulating for a wide audience the benefits of using specially-designed whole life insurance in financial planning. Since that time, the ever-fluid, ever- chimerical world of personal finance has grown even more unfathomable and unpredictable.

As a Bank On Yourself authorized advisor, I believe that a sequel to the original Bank On Yourself book was long overdue. This is why I was so pleased to learn of the publication of this second, more comprehensive discussion of a truly unique cash management system.

In the sequel, The Bank On Yourself Revolution, Yellen has gone to considerable effort to deconstruct the Bank On Yourself method in a way that makes it even more accessible and understandable to the average person. She lays out a concise, solid, yet still passionate case for using specially-designed, dividend-paying whole life insurance policies as vehicles for preserving and growing wealth. When put together correctly, she says, these policies build up cash value as quickly as possible and provide unparalleled safety and security.

Yellen explains that a person can make tax-free withdrawals and loans from the accumulated cash value in the policy to finance large purchases, such as college tuition, automobiles, and cash-producing real estate. You use your policy and are able to pay yourself back, with the loan secured by the death benefit. This idea, which has been around in various forms for well over 150 years, is referred to by some as “becoming your own finance company.” Yellen does a good job of explaining the ideas behind Bank On Yourself without losing the reader in a fog of insurance-speak or marketing hype.

Implicit in her explanations is the understanding that anyone wanting to use the system laid out in BOYR should do their own due diligence. It is definitely not for everyone.

In The Bank On Yourself Revolution it is evident that Yellen has put a lot more thought and effort into the content and layout of the book, making navigation from topic to topic easier and keeping her commentary focused and free of anything that could be perceived as excessive verbiage. She does an admirable job of making the ideas presented clear and easy to understand, even for those who have little financial education.

The Bank On Yourself Revolution introduces us to some old school financial concepts that Yellen admits aren’t “sexy,” but which work, such as the “10-10-10″ money management method and the common sense idea of not having much debt. She makes a strong case for designer whole life polices over both term insurance and the always trendy indexed universal life (IUL) policies

Nice additions to this volume are the “takeaways” at the end of chapters which give the reader nuggets of information designed to be easy to grasp, retain and implement. Yellen also includes stories of real-life users of the system ranging from housewives to entrepreneurs to former professional athletes. Such anecdotes obviously have value, especially to financial professionals who are introducing the concept to their clients for the first time.

People feel better knowing that “real people” just like themselves are finding success with Bank On Yourself.

The Bank On Yourself Revolution makes for an entertaining read and is a worthy contribution to a growing body of evidence supporting the wisdom of using permanent life insurance in financial planning. If you are someone who is looking for alternatives to banks, Wall Street, and finance companies, this book will help you understand one such alternative- Bank On Yourself.

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Secrets to Auto and Home Insurance

Can we start an auto insurance revolution?

I saw this article on the web and read the comments section where one woman asked a question about why her home insurance premium went up, I thought I could help.. Plus the article although well written did what most do – Tips on Cutting Your Insurance Costs – gives you a good title, some good basic information and then sends you to the money makers for the insurance industry. Please see it at the bottom of this article.

The article lists that there are five comments but I can only see three and it does not show mine or the other two. I did not use profanity, I did not bash any company but I did mention the stats that I have posted here below about who owns the auto insurance market, and that it is not all that it seems. If you have a comment section and the people commenting are not using profanity or attacking an individual but does have some sort of opinion or questioning something is that censorship not to post it? I know it is a private company and business – but I never said that GMA was bad, why can one woman talk about her home insurance going up after she bought it the next year but I can not tell the reading market that the shopping sites only point you to who is paying them, or comment to this woman why her rates went up.

I was watching the weather channel the other night and not one, but two, Progressive commercials came on the air, during the same commercial break. The first one touts that they will shop other companies for you there-by saving you time of shopping other sites or insurance companies. The second commercial from Progressive then says you can pick your price – you get to choose what you want to pay, sounds like Priceline – but it’s not. Both of these are ludicrous but what infuriates me more is that I’m watching this with another person who is successful, smart and they are buying it. How many of you are buying this crud? The auto insurance market is a $160 billion dollar business of which Geico (a Warren Buffet owned business) and Progressive spend over $700 million dollars in advertising with a return of over 70% of the market share. So, many, many people are listening and buying it. How can you avoid it? You receive mail every week from Geico, advertising from Progressive constantly and these same advertisers are dominating the media which then allows a simple comment to be censured.

Progressive does give you rates of other carriers such as Farmers, Allstate, etc., what is wrong with that? Nothing, but here is how it works, if Progressive wants you as a client the only other companies that come up are ones that are more expensive than Progressive. If Progressive does not want your business, you know if you have too many tickets, they pull up one of the more competitive options that will take you. What you are not seeing is that there are between 20-40 insurance carriers per state to shop from and two out of the 20-40 are by far more competitive and they know that you do not have the time to try to find those 2 out of 40.

Why doesn’t picking your own price work with Progressive? The real question is do you really want to take less coverage or drop collision coverage just to lower your rate when all you really have to do is find the right carrier? Wouldn’t it be better to find a carrier that would save you $400 a year but you could still have collision coverage, and good liability limits? Before you buy auto insurance you should decide what you feel is the coverage you need and want, then get quotes to support what you want.

Many other sites have stories of helping you find the best insurance rates, the person who owns this site owns another one too and again in concept it is all good and it is a shopping site. There is nothing wrong with a shopping site but what is wrong is the likely hood of finding the best deal is only predicated on the most cost-effective company signing up and paying for this service, and for some reason many of the most cost effective carriers don’t subscribe to these services.

These companies get so much attention it is staggering but yet I have never seen anyone state the truth, transparency or anyone really trying to educate the public. Here is the truth, I can tell you how to find the most competitive insurance carrier for you and it would not take more than a few minutes of your time. You would know exactly where to go and you would save the most money. If I give it to you for free, I will have no time to earn a living. How do you find truth and transparency in this type of system? I encourage people to think about what they buy and how the business works. If you are receiving tons of media from a Gecko isn’t it possible that they are just paying the most, but not necessarily painting the whole picture? Look beyond the obvious so you can be a savvy consumer.

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Online Car Insurance Revolution

An article on how the internet has changed and revolutionised the way in which we look for and purchase our car insurance policies with the intervention of online car insurance price comparison companies.

The UK consumer market place for car insurance has been revolutionised over the past few years by the massive impact of the internet and the accessibility of advertising information at fingertip availability via the web.

Microsoft boss Bill Gates once envisaged that every home would have computer and it certainly looks as though this will come to fruition. The love of the internet and what information it can provide pleases every age group, every taste and almost every market place.

One of the biggest commercial market places is the motor industry, and the accompanying market of car insurance is likewise immense. It wasn’t so long ago that drivers looking for cheap car insurance were totally reliant on informed and chanced luck in finding a value for money car insurance premium.

Advertising was pretty restricted to papers, telephone directories and TV adverts with consumers having to spend great lengths of time shopping around, usually until they got totally bored and gave in to the cheapest policy they had managed to find.

Online car insurance has been dramatically revolutionised by the addition of a new wave of web based price comparison companies. These insurance aggregators allow shoppers to input their personal and driving details into their online car insurance systems once in order to retrieve dozens of results from insurance company quotes from insurers offering their most competitive prices on a whole range of polices from motor insurance to home insurance.

The impact of these online price comparison companies on the insurance providers has been quote dramatic because the motorist insurance consumer now has access to market rates which is making a lot of companies look at pricing strategies which is great for competition and great for the consumer.

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