Amount of life insurance to own

 When one decides to purchase the life insurance policy. The next step as to determine the appropriate amount of life insurance to own it is the determination of the amount to be insured. The insured amount should be determination based on the income of the insured however the correct amount of life insurance to own is the personal matter because the family needs and financial goals vary widely from family to family.

 However there are some rules regarding the determination of amount of life insurance to own based on data provided by insurance companies and experience it is found that people have generally insured the amount about six to ten times more than their annual earnings . so some financial planners have proposed certain arbitrary rules for determining  the amount of life insurance to own such as six to ten times annual earnings. But this rule is not scientific and meaningful. Because they do not take into account the family size income financial goals standard of living and needs which may very from in family

 Basically there are three modern approaches to estimate the amount of live insurance to own which are as given below

1.       Human life value approach: when family head dies prematurely the breadwinner’s earning is lost forever. This is the loss of regular income essential for livelihood of continued life of surviving family members. This is known as the human life value. The present value of the family’s share of the deceased breadwinner’s future earnings is called the human life value. It can be calculated by the following steps:

a.       Annual earning calculates the average annual earnings of the insured over his productive lifetime.

b.      Deductions: deduct life and health insurance premiums the costs of self maintenance and state income taxes. The balance remained is the share to support the family of insured.

c.       Number of years: determine the number of years from the insured’s present age to the contemplated age of retirement.

d.      Present value: determine the  present value of the family’s share of earnings using

2.       Need approach: the amount of live insurance to own can also be determined from needs approach. Under this method the various family needs that much be met if the family head should die are analyzed and the amount of money needed to meet these needs is determined the amount  of existing life insurance and financial assets is then subtracted from the  total amount needed. The most important family needs are given below:

a.       Estate clearance fund: it is the fund needed for funeral expenses medical bills inheritance income taxes etc

b.      Income during the re adjustment period: it is the period given to the family to adjust the living standard to a different level, during this period the surviving family should be given approximately the same amount of income received while the family head was alive

c.       Income during the dependency period: the period follows the re adjustment period. It is the period until the youngest child reaches the adult age. In this period the family should receive income enough for livelihood of surviving family. If the surviving spouse earns money the income needed is substantially reduced.

d.       Life income to the surviving spouse: the main objective of life insurance is to make life income to the surviving spouse. If the surviving spouse is older and has been out of the labor force the significance of life income becomes even greater.

Correspondence education

Correspondence education is an alternative mode of education. In Britain it is called distance education. In this method education is given through Correspondence between a learning center and students printed materials are used for this Correspondence. Experts develop these materials according to a predetermined curriculum. These materials are generally interactive in nature. it provides both lessons and practice exercise. It is used as a medium of communication between teacher and students. These materials are exchanged between the teachers and students through postal services. The students of Correspondence education courses spread in a large geographical region and unable to regularly attend the class of formal educational institutions may be benefited by this system. It can be used as an effective alternative to formal education too.

Correspondence education was at first started in the UK by a private organization in 1840. It was established in Germany in 1856 the USA in 1891. India has used this system in 1962. Still there in not any institution in Nepal that provides formal education but this morality.

Advantage of Correspondence education

1.       It proves an opportunity of education at workplace. People can get required education even formal education up to higher level by Correspondence education.

2.       It can provide need based education.

3.        It is useful for both formal and non formal education.

4.       It is more feasible and sustainable because it uses printed material which can be easily reproduced and stored. It reduces the problem related to lack of related reference materials.

5.       People can get higher education by using their leisure time.

6.        The learning is student centered. It makes the learners more active.

7.       It is also useful to education people to update their knowledge.

8.        It can support formal education system by developing more activity centered education materials.

Business income insurance

When certain expected accident takes place in the business organization it results a direct physical covered by the concerned policy. Such unexpected incident also affects the regular business income such as the loss of profit rent and extra expenses business income includes the net profit that would s and wages. The business income insurance is designed to cover the income of business interrupted  by the accident.

 Business income insurance is a specific insurance designed to recover the loss of business income and expenses that continue during the shutdown period. It also covers the extra expense incurred by physical losses to insured property. It is also called business interruption insurance. There are four for business income insurance.

1.       Business income and extra expense coverage form: this form is used to cover the loss of business income whether the income is derived from retail or service operations manufacturing or business rest. When a form has a business income loss profits are lost and certain expense may still continue such as rent, interest, insurance premiums and some salaries. This form covers both the loss of business income and extra expenses insured from a physical damage loss to covered property of business. This insured peril is listed in the cause of loss form attached to the policy. For example if a rubber factory has a fire and must suspend manufacturing rubber for six months all regular employees are laid off during the shutdown period. If estimated profit of the firm per year is 10 lakes during the shutdown period of six months it will lose net income of 5 lakes. In addition it will have had continuing expenses of 1 lake for rent, interest utilities and other expenses. Thus the total business income and extra expenses would be 6 lakes which is covered by this policy.

The business income and extra expense converge form has the following coverage

a.       Loss of business income: Loss of business income and extra expense coverage form covers the loss of business income due to the suspension of operations during the period of restoration

b.      Additional coverage: the business income from automatically provides several additional coverage such as given below

. extra expense: the extra expenses incurred by the firm during a period of restoration such as the cost of relocating temporarily increased rent at another location and the rental of substitute equipment.

. Action of civil authority: the loss caused by action of a civil authority that prohibits access to the described premises.

. Alterations and new buildings: it includes the loss of business income because of alteration or additions to existing buildings.

. Extended business income: after occurrence of an accident a business may experience reduced earnings after the repairs are completed. It will take additional time to recapture the old business market.

c.       Co insurance: Co insurance is the act of purchasing business income coverage for extra income and expenses during shutdown. The basis for coinsurance is the sum of net income that would have been earned plus continuing normal operating expenses. The business income coverage from can be purchased with coinsurance for 25, 50 or 75 percentage as required by the insured. If the firm expects to be shut down for no more than six months a coinsurance percentage of 50 percentage is recommended. If the firm expects to be shut down for more than one year even 125 percent option should be selected. The premium is increased as the higher percent option is selected.

d.      Optional coverage: by appropriate entry on the declarations page the business income

.

Open education

Open education is an alternative approach to formal education at higher level. It  is a non formal approach to formal education. The institutions are established to fulfill the need of those people who cannot get higher education from educational institutions such as schools and universities due to many reasons. One of the reasons is that students should attend the classes of schools and universities regularly to get higher education. These educational institutions function at a certain place for certain duration and time. The people who are engaged in different jobs cannot get education from these institutions due to their formal structure. Institutions of open education are established to fulfill the needs of those people who are not benefited from schools or universities.

 The basic principles of open education are learning opportunities should be provided without delay and provide education when it is needed and take examination when the students are ready. The students need not attend the class as it is needed in general schools and universities. They function by using alternative means  for acquiring knowledge. These means include correspondence courses self learning materials contact classes contact with resource persons ,contact centers, mobile library, learning kits programmed instruction use of communication media such as radio as television, instruction material etc. in open education students learn by self study.

 The delivery approach of open education is paced according to ability of students. Students take their own time for learning a  lesson. They learn through self study using their leisure time. All students learn in their own rate by using different alternative means. When they finish one learning task they enter In the learning of other task. In this way they finish the learning of a certain level according to their pace. When they feel ready to take examination, educational institutions provide an opportunity to the students to appear in the final examination. After the success in final examination they are awarded the academic degree which is termed equivalent to the degrees provided by formal education institutions. With the rise in the filed of information technology many educational institutions and universities have provided online courses. A student can get the higher degree utilizing his or her leisure time. Open education provides a chance for earning and learning at the same time .

 A true Open education system not only provides a chance to get higher education by using alternative approaches other than face to face learning in classroom it should provide higher education to the capable persons withdrawing the need of a prerequisite educational background. In a true open education a person should be provided an opportunity whatever he or she want to learn without a prerequisite degree. Students should be allowed to learn any area of knowledge and the institution of Open education should accredit their learning if they become successful in the final examination.

 Although Open education is a new concept it has been successfully practiced in other countries. The first open university was established in the uk in 1960 in the name of university of air. It was inaugurated in 1970 in the name of national university. The first chancellor  of his university was Harold Wilson the prime minster of the uk of that time. Allam ikbal university of Pakistan is the first open university of SAARC region.

Development education

Development education has been defined by different scholars in different ways. Development education bringing out of the ideas of universal validity which are latent in the mind of every human. Development education is the all those capabilities in an individual which will enable him to control his environment and fulfill his possibilities.

Human beings are inherently social animals by their nature. They are always in the effort of being adjusted with their complex social environment and maintaining societal relationship. They have to play a specific role in the society according to its specific and changing needs. Development education helps them in the process of their adjustment with the changing context of society. the process of this development education adjustment is also termed as education development  because human beings develop specific skills in the process of this adjustment. In this way education is a process of development thought which people learn the skill of development adjustment.

School

Schools are the formal agencies of socialization. They prepare the child to face the problems of the future in a planned manner. They develop the character of citizenship in them. Schools socialize children in a systematic manner. Schools teach all the behavior which is needed for the child to be  a responsible member of society. Society has established schools for the purpose of socialization of child and school play this role in a formal manner. Schools of modern age have become a very important agency for the socialization of the child. On the one hand they develop the character of citizenship in the child they also prepare them according to the need of the future. The schools of modern age are playing two fold duty of socialization of the young and preparing them for the future at the same time. Schools are considered as the secondary agencies of socialization. Their relationship with the child is formal. The relationship of individuals with the school differs from person to person

Loan

Loan is the sum lent to other for certain time period with the agreement to charge interest on principal. The interest is charged certain percentage on the principal. When money belonging to one is advanced to another to be used for certain time period it is called loan. The basic objective of loan advancement is to earn interest as the reward for lending the sum for specific period.

 Commercial banks are organized institutes providing loans for the needed. The loan advancement is the main function of commercial banks .similarly interest on loan has become their main source of income. Bank do deposit accepting and lending business. Lending is a risky business. Loans are provided to earn interest. However sometimes it may be difficult even for the repayment of principal. In the situation there should be proper loan management in banks. Indeed making loan is the principal function of banks to fund consumption and investment spending by business individuals and government office. The fact how well a bank performs its lending function has a great deal to do with the economic health of the country. Bank loans support the growth of new businesses and jobs and promote economic vitality. Loan advancements account for more than half of bank’s total assets and about two thirds of their revenues. More risk in banking tends to be concentrated in the loan portfolio. When a bank gets into serious financial troubles its problems usually spring from loans. Generally loan problems emerge from the following reasons:

1.       Loans have become uncollectible due to mismanagement

2.       Illegal manipulation of loans

3.       Misguided lending policies

4.        Unexpected economic  downturn

Delivery approaches of education

 As discussed under the headings of meaning, aims forms and functions of education it is mainly regarded as the process of bringing out the potentialities within an individual towards his of her fuller development. It is mainly concerned with how education takes place in an individual. The education process may be intended or unintended however society emphasizes on the approaches to education among which formal education in the form of schooling remains at supreme level. Society established schools prepare a curriculum for the planned academic development of future generations. This system uses more formal delivery approach of education. Beside the formal approach education can be provided by other alternative approaches.

Term life insurance

The insurance policy with a specific period is called term insurance. It has several basic characteristic. Firstly the period of protection is temporary in this policy. It may be from 1 year up to 20 years. The protection from the life policy expires at the end of the period if it is not renewed .this policy can be renewed. It means the coverage period can be added without evidence of insurability. The premium is increased at each regeneration based on the insured’s attained age.
Since term insurance is renewed without evidence of insurability generally insured’s in good health tend to drop their insurance as the premium increase. This selection may adversely affect the insurer’s benefits. To minimize adverse selection many insurers have an age limitation beyond which renewal is not allowed such as age of 70 however some insurers permit term policies to be renewed to optimum age as the premium rate is increased with the risk factor.
 Term life insurance policies have no cash value or saving’s element. Although some long term policies develop a small reserve it is used up by the contract expiration date. Term life insurance policies are also convertible in other types of life policies. While conversion the policy owner must also pay the difference between the premiums paid on the term policy and those that would have been paid on the new policy with interest on the difference at a specified rate. The purpose of financial adjustment is to place the insurer in original age.
 There are different types of term life insurance policy sold as per needs of the clients. The most common term life insurance policies are given below:

a. Yearly renewable term policy: this is the policy which can be renewed for successive one year periods without evidence of insurability. Premiums increase with age at each renewal date. Most such policies can be converted to a cash value policy as the requirement  of the policy holder.

b. Term policy with more than one year’s period: term policy can also be issued for different periods such as 5yrs, 10yrs, and or20yrs.ect. The premiums paid during the term period are equal but they increase when the policy is renewed.

c. Term policy up to age 65 year’s: a term life policy can also be issued expanding the period up to 65 years of age. At the expiry of the policy it can be converted to a permanent plan of insurance.

d. Decreasing term policy: it is a term insurance with gradually declining face value. The premium is equal throughout the period. In some policies the premiums are structured  so that the policy is fully paid for a few years before the coverage expires. For expires. For example a 20 year decreasing term policy may require premium payments for 17 years only. This method avoids paying a relatively large premium for only a small lament of insurance near the end of the term period.

e. Re entry term policy: this is a revertible term policy. Under this policy renewal premiums are based on select mortality rates if the insured can periodically demonstrate acceptable evidence of insurability. Select mortality rates are based on the mortality experience of recently insured lives. However to remain on the low rate schedule the insured must periodically show that she is in good health and is still insurable. The rates are substantially increased if the insured cannot provide satisfactory evidence of insurability.

Alternative approaches to education

Education is one of the most important basic needs of human beings. It opens the door for  all round development for them. It develops their potentialities. It develops the understanding of the individuals about their surroundings. It makes them able to be adjusted in life and solve the problems of their practical life. It helps for their individual and social development. An individual in the modern world must be education properly to enable him solve the problems of life.
 Providing basic education to all the citizens is included in the developmental plan of  all the countries. Schools are opened in all parts of the country to meet this objective. Facilities are provided to educate all without any discrimination. Despite these endeavors often a large portion of population cannot be able to utilize these opportunities properly due to various reasons. The formal education system established by the state cannot incorporate all the citizens. For example, census 2001 has reported that Nepal has established primary schools which can enroll about 122% of total primary level age children and education is free at primary level but more than 8% of children of this age group are still out of school. Among them only more than half complete primary level. A large amount of government’s investment is being spent in vain. Still a large number of students are out of school. if we examine this education opportunity from the perspective of quality the situation seems to be more desperate. A large faction of Nepalese children is studying in sub graded schools with a lack of quality education.
 There are various reasons behind this problem. Some educationists hold the formal arrange, of schools for posing barriers in the access of some portion of society in their schools. It is arranged, dissemination passive learning only. Claimed that present schools are not capable to fulfill the needs of learners. They should be closed.  The school is dead has that the schools are not capable to end the conflict in society, instead they are themselves subjected to the conflict.
  All the above reasons highlight on the use of alternative approach to education which can function as a complementary system to formal schooling to guarantee the access of all people to education.

Inland marine insurance

When goods are transported on land they are financially protected by inland marine insurance. This insurance policy is purchased in case the goods are transported through road, bridges and tunnels. The means of transportation may be train, tram, lorry truck etc. it includes insurance on imports and exports, domestic shipments. In addition inland marine insurance can be used to insure fine art, jewelry furs and other property.

Inland marine insurance grew out of ocean Inland marine Insurance Ocean Inland marine Insurance protects property from the departing port to the destination where the cargo is landed. But cargo must be carried inland to the customer from the port too. To protect the cargo is land transport inland marine Insurance is developed.

 The commercial property that can be insured by inland marine policy can be classified into the following categories:

A.      Domestic goods in transit:  the domestic goods may be shipped by a common carrier such as a trucking company railroad or airline or by the company’s own trucks. The goods may be damaged from the collision, derailment or overturn of the transportation vehicle. They can also be damaged because of fire, lightening fold earthquake etc. such losses can be insured by an inland marine policy. Although a common carrier is legally liable for safe delivery of the goods, liability does not extend to all losses for example, a common carrier is not responsible for losses due to the causes of nature, improper packaging, public authority, enemies

B.      Property held by bailee: a bailee is the person entrusted with goods. By bailment a part is temporarily entrusted by bailment. The property held by a bailee can be insured under Inland marine insurance.dry cleaners, laundries, and television repair shops are the bailee who can legally be liable for damage or loss to customer’s property while in the bailee’s possession.

C.       

Mobile equipment: inland marine property can be used to cover property that is frequently

Moved from one location to another such as a tractor, crane, or bulldozer.  It is called equipment floater policy. Property floater policy can be used to insure some other types of property too such as livestock, theatrical property, computers etc.

D.      Precious property: the dealer of precious property such as gold jewelers diamonds fine art also can insure inland marine insurance. This policy provides coverage of most risks.

E.        

 means of transportation and communication: bridge, tunnels, docks, pipelines, power transmission lines, radio and television towers are among the most  common means of transportation and communication of modern society. Such means may be damaged by a flood, ice jam, earthquake, collisions etc. the loss incurred by such risks can be indemnified by indemnified by inland marine insurance policy.