Mortgages and Loans: Islamic Finance Avoids Interest.

Two million Muslims in the UK face an ethical dilemma if they want a mortgage or a loan. Conventional mortgages and loans all require the payment of interest and “riba” as interest is called under Islamic law, is forbidden by the Koran.

British financial institutions are increasingly catering for Muslims’ specialist needs through a number of alternative arrangements that respects the teachings of the Koran. Here are just two of them:

Ijara with diminishing Musharaka – the mortgage alternative.

Ijara with diminishing Musharaka is an Islamic alternative to a conventional UK mortgage and has been adopted by several British banks and building societies.

In essence, Musharaka means partnership. Under this Islamic financial concept, the bank buys the house and legally becomes its owner. Then throughout the pre-agreed period, say 25 years, a monthly payment is made. Each monthly payment includes a charge for rent and a charge that buys a small proportion of the house itself. It’s form of variable shared equity plan with the proportion of the house being owned by the purchaser, steadily increasing as payments are made. Once the final payment has been made, the house is owned outright. Ijara

Here you tell the bank or financial institution what you want, for example a car, and they buy it. In return for a monthly payment that covers the cost of the bank’s capital, the bank then allows you to use the asset for an agreed period. In reality, it’s a form of leasing

Islamic finance is not widely available in the UK – so where can find it? Here are three suggestions:

Over the last few years Lloyds TSB has introduced Islamic products to 33 of its branches. Their spokesperson says, “It’s important for our customers to see that we are following the right procedures. We have a panel of four Islamic scholars who over-see the products. They offer guidance on Islamic law and audit the products”.

Another high street bank, HSBC, is developing a special range of Islamic products under the Amanah brand name. This range includes home finance plans, home insurance, commercial finance, and various current accounts and pensions. Hussam Sultan, the Amanah product manager says, “As a bank, we are not here to moralise or tell our customers that Amanah finance is the way to please Allah. We’re just here to provide them with a choice”.

The Islamic Bank of Britain has three branches in London, two in Birmingham and one each in Leicester and Manchester. They’re the only British bank specifically providing for Muslim customers and claim to be halal throughout their operations. All their financial products are approved by their Sharia’a Supervisory Committee – all Muslim scholars who are experts in all aspects of Islamic finance.

For your interest we show below, definitions of some words used widely in connection with Islamic finance.

A Glossary of selected Islamic words used in finance.

Amanah: Means trustworthiness, with associated aspects of faithfulness and honesty. As a central supplementary meaning, amanah also describes a business deal where one party keeps another’s funds or property in trust. This actually the most widely used and understood application of the term, having a long history of use in Islamic commercial law. It can also be used to describe different financial activities such as deposit taking, custody or goods on consignment.

Arbun: Means a down payment. It’s a non-refundable deposit paid to the seller by the buyer upon agreeing a sale contract together with an undertaking that the sale contract will be completed during a prearranged period.

Gharar: This means uncertainty. It’s one of three essential prohibitions in Islamic finance (the others being riba and maysir). Gharar is a sophisticated concept that encompasses certain types of uncertainty or contingency in a contract. The prohibition on gharar is often used as the grounds for criticism of conventional financial practices such as speculation, derivatives and short selling contracts.

Islamic financial services / Islamic banking / Islamic finance : Means financial services that meet the specific requirements of Islamic law or Shariah. Whilst designed to meet specific Muslim religious requirements, Islamic banking is not restricted to Muslims. Both the customers and the service providers can be non-Muslim as well as Muslim.

Ijara: Means an Islamic leasing agreement. Ijarah permits the financial institution to earn a profit by charging leasing rentals instead of lending money and earning interest. The ijarah concept is extended to hire and purchase agreements by Ijarah wa iqtinah.

Maysir: Means gambling. It’s another of three fundamental prohibitions in Islamic finance (the other two being riba and gharar). The prohibition of maysir is often used as the basis for criticism of standard financial practices such as conventional insurance, speculation and derivative contracts.

Mudarabah: A Mudarabah is a form of Investment partnership. Here, capital is provided by the investor (the Rab ul Mal) to another party (the Mudarib) in order to undertake a business or investment activity. Profits are then shared according to pre-arranged proportions but any loss on the investment is born exclusively by the investor and the mudarib then loses the expected income share.

Mudarib: The mudarib is the investment manager or entrepreneur in a mudarabah (see above). It is this managers responsibility to invest the investor’s money in a project or portfolio in exchange for a share of the profits. A mudarabah is essentially similar to a diversified pool of assets held in a conventional Discretionary Managed Investment Portfolio.

Murabaha: means purchase and resale. As opposed to lending money, the capital provider purchases the required asset or product (for which a loan would otherwise have been taken out) from a third party. The asset is then resold at a higher price to the capital user. By paying this higher price by instalments, the capital user effectively gets credit without paying interest. (Also see tawarruq the opposite of murabaha.)

Musharaka: This means profit and loss sharing. It’s a partnership where the profits are shared in pre-arranged proportions and any losses are shared in proportion to each partners’ capital or investment. In Musharakah, all the partners to the commercial undertaking contribute funds and have the right, but without the obligation, to exercise executive powers in that undertaking. It’s a similar concept to a conventional partnership and the holding of voting stock in a limited company. Musharakah is regarded as the purest form of Islamic financing.

Riba: This means interest. The legal concept extends beyond interest, but in simple terms, riba covers any return of money on money. It does not matter whether the interest is floating or floating, simple or compounded, or what the rate is. Riba is strictly prohibited under Islamic law..

Shariah: This is the Islamic law as disclosed in the Quran and through the example of Prophet Muhammad (PBUH). A Shariah product must meet all the requirements of Islamic law. To facilitate this, a Shariah board is usually appointed. This board or committee is usually comprised of Islamic scholars available to the organisation for guidance and supervision for the development of Shariah compliant products.

Shariah adviser: Means an independent professional, usually a classically trained Islamic legal scholar, appointed to advise an Islamic financial organisation on the compliance of its products and services with Islamic law, the Shariah. While some organisations consult individual Shariah advisers, most establish a committee of Shariah advisers (often known as a Shariah committee or Shariah board).

Shariah compliant: Means the activity that ensures that the requirements of the Shariah, or Islamic law are observed. The term is often used in the Islamic banking industry as a synonym for “Islamic”- for example, Shariah compliant financing or Shariah compliant investment.

Sukuk: This has similar characteristics to a conventional bond. The difference is that that they are asset backed and a sukuk represents the proportionate beneficial ownership in the underlying asset. The asset is then leased to the client to yield the profit on the sukuk.

Takaful: This is Islamic insurance. Takaful plans are designed to avoid the characteristics of conventional insurance (i.e. interest and gambling) that are so problematical for Muslims. They structure the arrangement as a charitable collective pool of funds based on the comcept of mutual assistance.

Tawarruq: When used in personal finance, a customer with a cash requirement buys something on credit on a deferred payment basis. That customer then immediately resells the item for cash to a third party. The customer thereby obtains cash without taking an interest-based loan. Tawarruq is the opposite to murabahah.

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“NO MONEY DOWN!” “100% FINANCING!” “103% FINANCING”

Buyers love seeing and hearing those words. And why wouldn’t they? First-time buyers make up 40 percent of the home buying market. This is nearly half of all homes sold.

Consider this. There were just over seven million homes sold in 2005, not including new construction homes. This means that nearly THREE MILLION buyers bought their first home last year.

Marketing to this segment, if you are a real estate agent, is an absolute must! Of these first-time homebuyers more than four out of every 10 bought this home with no money down.

On average, first-time homebuyers put down less than 2%. Around 10 years ago, the average first-time homebuyer put down a little more than 10%.

I would say that nearly seven out of every 10 loans I do has 100% financing and it’s not just first-time homebuyers. However, most potential first-time buyers don’t even realize this option is available to them and that’s why this newsletter will focus on them.

The real estate market flourished over the last few years in large part to 100% financing for first-time homebuyers. Suddenly, buying a home is possible for nearly everyone. More first-time buyers have been able to enter the marketplace than ever before. Banks have become more liberal and lending standards have loosened. There are many, many ways to get 100% financing.

You can get 100% conventional financing with credit scores as low as 620 and a fairly recent bankruptcy.

You may be able to get a government loan with an even lower credit score. 100% financing is available for nearly every borrower. You can even buy a $2,000,000 home with no money down today. That’s two MILLION, not a typo at $200,000. Amazing, but true.

Many potential first-time homebuyers never think of buying a house because they don’t believe they have enough money for the down payment.

They’ve been told through the years that they need a 10-20% down payment to buy a home. Obviously, this simply isn’t true.

Let’s look at most of the 100% financing options:

1) 100% No Down Payment Programs.

These programs require the buyer to pay ordinary closing costs. These programs come in all varieties from 2, 3, 5, 7, and 10 year adjustable rate mortgages to 30 year fixed mortgages. All are usually available as interest-only too.

PROGRAM HIGHLIGHTS AND HOW DO I QUALIFY FOR THIS?

o 2.5%-3.5% of the total loan amount in cash required to pay closing costs and two month’s of your new loan payment in the bank for reserves.

o Stated income, stated assets and even No Doc is an option with decent credit.

o Plan on having a mid credit score of at least 660 if you cannot fully disclose your income to qualify.

o If you can fully disclose your income to qualify, your mid credit score can sometimes be as low as 580.

o These loans are designed for people who have some money for closing costs. You can qualify for this with credit scores as low as 580.

This is the most popular 100% financing option on my team.

2) 100% No Down Payment and Seller Pays Your Closing Costs.

The exact same loan program as #1, with all of the same loan program options above, but with a different twist. The seller pays all of the 2.5%-3.5% in closing costs. This is the way to go if your buyer has no money at all but fairly decent credit.

PROGRAM HIGHLIGHTS AND HOW DO I QUALIFY FOR THIS?

o The seller pays the 2.5%-3.5% of the total loan amount to pay closing costs.

o You are still usually required to show two month’s of your new loan payment in the bank for reserves.

o Stated income, stated assets and even No Doc is an option with decent credit.

o Plan on having a mid-score of at least 660 if you cannot go fully disclose your income to qualify.

o 580 mid credit score is usually the minimum required on full doc loans but plan on a much higher interest rate.

o These loans are designed for people who have no money for closing costs.

Nearly every loan program out there today allows for the seller to pay your closing costs. This means no money out of your pocket.

If you don’t have the necessary reserves or you don’t have the ability to get them, it is not a big deal, and you should still be able to get the loan. However, it’s important to notify your preferred lender of this immediately as this could change the availability of the loan program and likely your interest rate.

3) 103% Loan With No Down Payment, Little or No Closing Costs.

Maybe your seller refuses to pay for closing costs and your buyer has no money to close. Then 103% loan programs may be the way to go. This means the lender finances the closing costs as well. The requirements on this program are stricter and the options fewer.

PROGRAM HIGHLIGHTS AND HOW DO I QUALIFY FOR THIS?

o The lender pays the 2.5%-3.5% of the total loan amount to pay closing costs and ties this into your loan.

o You still may be required to show two month’s of your new loan payment in the bank for reserves.

o Stated income, stated assets and even No Doc is NOT usually an option regardless of your credit.

o Plan on having a mid-score of at least 620.

o These loans are designed for people who have no money for closing costs and the seller refuses to chip in.

The interest rates on these programs are higher and the program selection is more limited. If possible, it’s a better move to go for #1 or #2.

4) VA Loans

If you are a Veteran, VA loans require no money down and the seller can pay your closing costs. The rates are very good and the credit requirements are not very high.

PROGRAM HIGHLIGHTS AND HOW DO I QUALIFY FOR THIS?

o Must be a veteran in active duty, or honorably discharged.

o The seller usually pays the 2.5%-3.5% of the total loan amount to pay closing costs but the Veteran can pay too.

o Must fully disclose your income to qualify. You cannot go stated income or No Doc.

o You will not be required to show two month’s of your new loan payment in the bank for reserves.

o Stated income, stated assets and even No Doc is NOT an option regardless of your credit.

o Plan on having mid-score of at least 560 – 580 although there is no formal guideline on this.

o These loans are designed for Veterans only.

5) FHA Loans

This isn’t really a “No Money Down” option, however many first-time homebuyers have found that the FHA loan is one of the best alternatives when they don’t have much money to put down.

With an FHA loan, you could put down as little as 3%. FHA loans are easier to qualify for. If your credit is less-than-perfect, the rates on an FHA loan are usually far better than the sub-prime alternative that you may be facing. For example, if you have a 580 mid-credit score, your options may be FHA or a sub-prime loan. FHA would probably be cheaper for you.

Now, 3% may seem like a lot to come up with, but many people find that when they put their minds to it, it’s not that difficult. FHA allows this 3% to be gifted to you by a family member, employer, or even a charitable organization.

FHA loans do have very strict requirements and restrictions. Not all town homes and condos qualify, and there is a maximum loan amount you can get. You can check the FHA website

PROGRAM HIGHLIGHTS AND HOW DO I QUALIFY FOR THIS?

o You are responsible for the 2.5%-3.5% of the total loan amount to pay closing costs but the seller can pay too…all the way to 6%.

o Must fully disclose your income to qualify. You cannot go stated income or No Doc.

o You will not be required to show two month’s of your new loan payment in the bank for reserves.

o Stated income, stated assets and even No Doc is NOT an option regardless of your credit.

o Plan on having mid-score of at least 550 – 580 although there is no guideline on this, and you may be able to qualify with a lower score.

o If you are using a non occupying co-borrower or you have a roommate, renting a room from you, whose income you would like to help you qualify; this may be the best way to go.

Many other loan programs don’t allow you to consider these sources and do 100% financing.

6) Owner Financing

Owner financing means the owner (or seller) finances all or a portion of your home purchase.

For example, you might borrow 80% of the value of a home from a mortgage bank, and “borrow” the other 20% from the owner. In this situation, the owner “carries back” a second mortgage. Or he could carry 100% of it.

For the average homebuyer, owner financing is very difficult to find and requires some tricky negotiating. In my opinion, it’s generally a bad idea.

However, if your credit score prevents you from getting a 100% loan, this may be the only way to go. If you have successfully negotiated a deal where the seller carries the mortgage, you should contact a skilled attorney to protect all parties, especially you.

Sellers don’t usually want to carry loans for 30 years like mortgage companies do so plan on your seller-financed loan having a much higher interest rate than a mortgage company can offer you.

Also, plan on having a balloon payment of some kind. Two to five years is normal. This means you will have to pay the loan in full or refinance it with a mortgage lending institution at the end of the balloon period. If the seller goes into bankruptcy or has serious personal financial troubles and loses the house, you may be out as well, including all of the money you have in the property.

PROGRAM HIGHLIGHTS AND HOW DO I QUALIFY FOR THIS?

o Closing costs are usually minimal.

o No minimum credit score required…just an agreeable seller.

o No income disclosures are usually necessary.

o You will usually not be required to show two month’s of your new loan payment in the bank for reserves nor any other banking information.

o Risk is very high as you are not dealing with a trusted institutional lender.

o Plan on higher rates and unconventional terms.

You shouldn’t rule out owner financing if you have poor credit. Just keep in mind that by looking for someone who is willing to help finance your purchase, you severely limit your choices and there is a tremendous amount of risk involved. Protect yourself with strong professional advice from your real estate agent and an attorney.

9) Lease-To-Own

With the tremendous increase of homes in inventory, combined with few who can afford them because of the rapid increase in value, this option is becoming more and more popular.

With a lease-to-own, or a lease option, you lease a home, like normal, but make larger payments in order to begin accumulating a down payment. For example, if a house would normally lease for $1200, you might lease it for $1500/month, with $300/month going into a special “savings” account. At the end of a specified period, you buy the home using the money in that special account as your down payment. However, if you decide somewhere along the line not to purchase the home, all of the money in the special account then goes to the seller.

Think of this option as renting with a forced savings account. If you can find someone willing to do this, and your credit isn’t the best, it’s not a bad option. However, most people who are selling their homes need their money out of it in order to buy their next home, so finding someone who is willing to lease to you may prove more difficult.

Also, it’s important to keep in mind, your monthly rental payment will likely be far less than the mortgage will be when you go to purchase the home. This is because rental prices have come way down, due to the vast inventory, while rising interest rates and higher values mean a higher mortgage payment for the same home.

PROGRAM HIGHLIGHTS AND HOW DO I QUALIFY FOR THIS?

o Closing costs are usually minimal. Probably only a minimal security deposit.

o No minimum credit score required at the time of the lease option…just an agreeable seller. However, you will need to make sure your credit is good enough to exercise the option to buy the house at the time the lease period ends.

o No income disclosures are usually necessary.

o You will usually not be required to show two month’s of your new loan payment in the bank for reserves nor any other banking information.

o Risk is very high as you are not dealing with a trusted institutional lender.

o Plan on higher rates and unconventional terms.

100% FINANCING–NOT JUST FOR FIRST-TIMERS

100% financing is not just for first-time homebuyers. It’s for everyone and can be used to help you get more real estate business, especially in this tightening market.

I did a loan three years ago for Dave and Diane. They bought a beautiful $500,000 home…with no money down. The seller paid all of the closing costs.

Dave called me a few months ago to get pre-approved for a new home with a $1 million price. I was excited for them and asked him for the name of the agent he was working with so I could send the pre-approval letter over.

Dave said he didn’t have an agent yet. In fact, he didn’t even have the home picked out yet. He explained he was interviewing agents to list his current home, which he estimated was now worth $850,000. Once that home sold, he was planning on using his roughly $300,000 profit, after commissions, to put down on the new home.

A month later, he called and said he and Diane had found their dream home. It was $1 million, on the golf course, and was the listing of the agent who was representing his house as well. The agent had consulted with the seller of the $1 million home and they agreed to offer him a substantial discount if he would buy it and close within 30 days.

The problem was his original house hadn’t sold. “Aaron, we really want this house. If we don’t buy it now, I just know someone else will soon. What can we do?” We financed his new home…with no money down. The seller paid all of the closing costs. To make it even better for Dave and Diane, we structured the loan in such a way where he was not penalized, from an interest rate perspective, for having to make this tough decision.

We gave him a 70% first mortgage and a 30% second mortgage, as opposed to your traditional 80/20. This enabled him to get the best rate possible on a long-term first mortgage, with no need to ever have a costly refinance. The loan will eventually look the exact same as if he had sold his home prior to this acquisition. Dave and Diane were thrilled!!! When their home eventually sells, and it’s currently in escrow, they will simply pay off the second mortgage. They have the comfort of knowing they have a great first mortgage they can live with, in their dream home, for many years to come.

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Why Young Adults Need to Learn About Personal Finance in School

Children are sent to school for the purpose of learning and developing talents and skills that will prepare them for future life in the real world. While it is true that they are taught grammar, math, Biology, languages, and skills like baking and other practical arts, they are usually found lacking in the subject of personal finance.

To manage your own personal finances is basic and essential when you want to become self-reliant and when you want to put your life in order and start a home of your own. To have the fundamental understanding of personal finance means that you are better prepared to face life ahead of you. It is very common, for instance, how young couples get on with their lives together with high hopes for the future, only to be met with disappointment and soon find themselves entangled in debt. This situation is just a result of not learning the essentials of personal finance.

Without gaining these basic skills soon enough, they may find themselves sinking deeper into debt. Then they start to lose whatever assets they had acquired, their homes, and possibly threaten their relationships. Not knowing what would happen if you spend more than you earn, or why is it important to save even just a small portion of your earning, or why is it necessary to be cautious when using credit, is a sure reason for falling into the mire of debt. If you try to handle your own household without basic learning, the future would be bleak and failure is not far ahead.

This is the reason why young people in high school should be taught these primary tenets. They need to acquire these skills early on in order to be ready when they are on their own, whether in going to the university, in having a job, or even living at home.

Now, therefore, is the perfect time for them to learn how to live within a budget, to not spend more than what they earn, and to save, before they face real life and have regrets later on. The worst thing they can do for themselves to build up a ton of debt, have bad credit and not be able to make those important life purchases down the road, like a home or a car.

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The Concept Of Finance In Different Contexts

The word finance has the sane connotations wherever it is used. It means liquid funds or cash reserves to be utilized for various purposes. For a very poor man, finance has only one meaning and that is to be able to generate enough to get him two meals a day. For a common man, it means to be able to pay off all his loan installments, his kids school fees, and his and his wife’s requirements depending upon their social circle.

For a small shop owner, the word finance means the funds he needs for his next purchase for the big occasions like Christmas and New Year. To an industrialist, the same word means his ability to complete the ongoing projects and to sign off new contracts with other companies. For a country, finance means reserves to be spent on the development of infrastructure, imports, healthcare, research and development agriculture and all other essential sectors. But in all situations, the essence of the word remains the same. It’s only the degree and magnitude that change.

Finance in itself is a big subject that is taught in business schools according to scientific rules. These finance schools produce youngsters trained in the principles of finance that go on to hold the reigns in big multinational companies. People having knowledge of sound principles of finance make the financial policies of the companies and they are accountable if any financial irregularities are found in the balance sheets or the accounts of any company.

Banks and other financial institutions are the backbone of any economy and they serve the financial needs of the people by making available loans and other mortgages to let them carry on with their projects like buying a car, electronics, home or any other thing. Banks even provide finances to let a person complete his higher education.

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What Does Subject-To Financing Mean to Real Estate Investors?

Acquiring real estate “Subject To” is an investment strategy that allows investors to acquire a property with little or no money out of pocket by leaving the seller’s existing mortgage in place. More simply, the investor does not have to get a loan through a bank or hard money lender to buy the property because they have purchased the property “subject to” the existing loan or loans. Put another way, “subject to” is a way to control a property by having the seller of that property continue to hold their bank financing in their name, but give the interest, benefits, and responsibility of the property to the investor. Because the seller’s name remains on the loan they will still remain liable for the payments if they were not made by the buyer.

Subject To Investing | Common Questions

Could the lender call the loan due if the property is sold subject-to?

Technically yes, but practically no. Whenever a home is sold, the underlying lender technically has the right to “call the loan due”. This is known as the “due on sale clause.” Almost all home loans that are less than 25 years old will have a “due on sale clause.” That being said, we have never seen a case in which a lender actually calls a loan in which the loan payments are being made in a timely manner. Banks are in the business of loaning money and collecting money, not in the business of managing property. Additionally, the lender would have to do their due diligence in order to even know that a sale took place, and why would they do that on a well performing loan? Finally, there are some strategies that investors use to further disguise a subject to sale, however, it is debatable whether these strategies are necessary.

Can a property be sold subject to when payments have been missed?

Yes, in some cases if there is a substantial amount of equity in the home, an investor or buyer may be willing to make up the back payments and buy the property subject to.
How will selling subject to affect the seller’s credit?

Most of the time there will be no affect on the seller’s credit in a subject to deal. However, if the seller has missed payments in the past and then an investor or buyer makes up those missed payments and pays on time from that moment on, it can actually improve the seller’s credit score. On the flip side, if the seller were to sell their home subject to the existing financing to a buyer that is not able to make the payments on time, the seller’s credit could then be damaged.

Phill Grove, CEO of REI Maverick, is a ‘Recovering Engineer’ who has successfully turned himself into a fully functioning Real Estate Investor. As such, Phill has closed over 1,200 real estate transactions and has conducted approximately $200M in real estate transactions. Due to Phill’s phenomenal success in real estate, Phill has also become a Real Estate & Business Coach to thousands of students finding financial freedom through real estate investing. Phill teaches all sorts of non-traditional strategies, such as short sales, auctions-options, REOs, subject-to, wraps, and contract assignments.I am an author, public speaker., and president of multiple Real Estate Investing Groups in Texas. To find out more about Phill Grove

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What Is The Cost Of A Physician Disability Insurance Cover?

Owing to the fact that the resources and assets at people’s disposal are shrinking day in day out, human beings have learned to be careful when it comes to spending. They will always remember to ask the question of what the cost of something will be. There are high chances that some people are interested in taking physician disability insurance and are wondering how much it will cost them. If you are one of them then keep reading to learn more.

Sincerely speaking it might not be possible for and individual to quote the exact cost of taking such a cover. Any person who comes up with such a figure might be wrong. They will be wrong because the conditions surrounding a single person might not be the same conditions surrounding another person. To determine therefore the amount of money an individual will be expected to part with will depend on some aspects which include the following:

Age of the insured

Once a person makes up their mind to go for Physician Own Specialty Disability Insurance then they should stay informed that their age will determine the amount of money they will have to pay as premiums. In most cases the amount of premiums increases as the age advances. This means that the younger a person is the cheaper their policy will cost.

This should be a motivating factor to the young people. They should try as much as possible to go for these covers because if they wait longer the price of the policy will go high. Taking this advantage can be a wise decision in one’s life.

The gender of a person

In most cases people forget thinking about gender of the person taking the cover. In general, the females have high chances of facing the risks insured against. This will imply that the higher the chances of getting impairments the more amount of premiums an individual should expect to pay.

Those people who are of a masculine gender will purchase the cover at a relatively lower price compared to their counterparts of the other gender.

Health history of a person

The health history of an individual can tell us more of what we should be expecting. Those people who have been having several ailments or those whose family tree is known for certain defects should be prepared to part with large sums of money. These health complications have high chances of making an individual suffer from a risk insured against.

An individual with a clean history in health issues should therefore be prepared to pay less amount of money in terms of premiums.

The type of policy

The insurance companies offer a wide range of policies. This means that when making a choice an individual should make sure that comparisons have been made. For instance an individual who gets attracted to the Guardian policy should be ready to pay a lot of money because this is the most expensive policy. So when taking Own Specialty Physician Disability Insurance the type and nature of policy taken is greatly vital to a person.

There is no way all these aspects can affect an individual negatively and therefore there is need of getting worried of things like one is a female, they are of an advanced age, or they have bad reputation in their health history all shall be well.

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Why Should One Go For Professional Disability Insurance?

How does it feel when a person is employed, is working and all is going well? They might be tempted to think that they will remain in such states for a very long time. The most important thing an individual should begin by appreciating is that the events of the next day, next hour or even next minute are uncertain. This is why a person should make sure that they have taken necessary precautions so that they can continue enjoy living on this earth.

It takes a few minutes to contract an impairment. To make the matters worse, there are some impairments which might make one unable to continue working. For instance, think about a news reporter who gets involved in an accident and ends up losing all their legs. Probably they will no longer be able to attend events and report as they used to do before the occurrence took place. This stretches to other several professions and therefore taking precautionary measures is what an individual should plan for. Some of the reasons as to why taking Own Occupation Disability Insurance policies remains benevolent to an individual include the following:

Ensures financial security

Every human being who is employed today has dependents. They also depend on what they earn for their daily upkeep. It might not be easy for such a person to survive and continue supporting the people they were supporting after an impairment given that they will no longer be employed. An individual who had taken a Professional Disability Insurance is assured of a happy living because they will be compensated.

There are some companies which pay up to 75 percent of what an individual used to earn. Even though an individual will be receiving less than what they used to earn, the most important thing here is that they have something to survive on. It can be frustrating for an individual who has no money, no employment and cannot work but has bills to settle.

Allows one time to transit to another profession

There are various types of professions across the world. Once an individual becomes disabled such that they cannot continue performing their work well, they should think about changing their profession. For instance in the case of a reporter, they can become an editor.

In most cases some training will be necessary to allow these people take up new roles. The compensation they receive will help them to go for such training activities. An individual who has nothing might not be able to change their profession because they lack moral and financial support.

Grants one mental solace

Think about someone who is bedridden because of an accident. This person has no food, no money and they have exhausted their savings. Such a person will have to survive at the mercy of friends, relatives and other well-wishers. At some point they might be taken as a luggage to those taking care of them.

When a person mentally surveys all these conditions and realize that it was not their mistake, they might contract mental frustration. The only way such a person will be healed is by getting an assurance that they have support. There is no need of waiting for an assurance that might never come. One has to go for Professional Own Specialty Disability Insurance and all shall be well with them.

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Get The Best Americas Doctor Disability Insurance

It is very important for doctors in America to have disability insurance. Unlike many other professions they work in an area of high risk. No doubt they are well trained educated and are working 40 hours a week, most of the time on their feet.

They need insurance to take care of any eventuality in their life wherethey fall ill and have to take rest. It is become extremely difficult for physicians to get disability cover in their own specialty. There is work being done at Doctor’s Disability Shop so that doctors can avail of a discount to get disability insurance for their ‘own specialty’

How Does Own Specialty Insurance Work?

Doctors are given the opportunity to choose their ‘own specialty’ disability insurance plan that is ideal for them. Once the doctor has decided on the plan, it is easy to apply since it is done electronically and does not require any paper work.

Disability Pro protects your income so you can provide for your family when you are faced with a disability. All that the physician needs to do is get the right amount of coverage. Disability Pro helps you to meet your financial needs when you are disabled and cannot take care of your patients. You can get remuneration which is equivalent to your own specialty.

Physician disability insurance covers the physician in his own specialty. The insurance stays with the physician even though he changes his employer. He can get up to $15,000 in monthly benefits. If it is catastrophic disability the doctor can get nursing at home and health care. All physicians get 15% reduction while AMA members get 35% reduction.

Physician’s Disability Insurance Policies

There are different types of disability insurance policies that physicians can avail of. They are Mass Mutual, MetLife, Berkshire Life (Guardian), Principal, and Union Central Life. Many of the provisions are same in each of the companies. But there are a few differences which may help to choose the particular insurance company.

It is very important to classify the medical specialty to determine the premium rate. The higher the occupational classification assigned to the medical profession the lower is the premium rate. Different companies may assign a different class of occupation to the profession which might change the rate of premium. The financial planners or the agents are in a better position to advise the best insurance company to insure as per the medical specialty.

The Best Physician Disability Insurance

Like all professions doctors also take precautions to see that health and life insurance are taken care of in their life and try to invest wisely for a good retired life. But many times they do not take into account a disability or injury.

The chances of a disability and injury are quite high and at such times it is difficult for social security, worker’s compensation, insurance and savings to meet all the bills. Disability insurance is a necessity. You have to know what the coverage that the disability insurance provides and the policy that is not taxable. The agents are the best people to guide you in taking the right policy.

So, if you are a physician who wants to take disability insurance contact the agents to find out the best policy for you.

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Why Do You Md Own Specialty Disability Insurance

When it comes to insurance types that are usually very much ignored, disability insurance tops the list. This is due to the fact that you hardly see people paying for disability insurance as they are more concerned about auto insurance and the more popular type of insurances. Generally, you might not know about habits you indulge in or the fact that your health is deteriorating regularly until you are suddenly down. Furthermore, there are also a number of sudden disasters that could suddenly make an individual disable in an instant, especially accidents. This is apart from the unpredictable nature of the body as illness or disease that could lead to disability can attack an individual in an instant.

Md own specialty disability insurance is a type of insurance policy that covers a good percentage of your monthly income from your job in the instant that you are suddenly unable to do any time of work. Overall, you will be protected in terms of your finances, should you become unable to work. Most people find it difficult thinking about disability as nobody wishes to be disable. This notwithstanding, there are several people who due to one disability or the other cannot work. With a disability insurance, you will be protected from having to face serious financial hardships if you suddenly become disable. Here are some reasons why you should have a Md own specialty disability insurance.

Income Loss

A major reason why you will need Md own specialty disability insurance is as a result of income loss. If you are losing your source of income due to disability, you will be getting some paid sick leave. However, the expenses on diagnosing what is wrong with you, treating it and recovering from the disability could be huge. Furthermore, your monthly expenses such as feeding and toiletries amongst others will continue. Even though your medical bills are to be covered by a medical insurance, you can still become stranded due to the other expenses. Furthermore, when your source of income is completely cut off due to disability and you have bills to continue to run, own specialty disability insurance can go a long way to help you cater for your bills.

Medical expenses

Even with your medical insurance, the increasingly expensive cost of healthcare can be a major challenge. You will need to continuously pay bills and buy drugs all through the period you need treatment and recovering. There are cases where a therapists or other specialist might be required to speed up your recovery. All of these require a lot of money. The transportation to and fro the hospital for check-ups will also require spending more money.

Other expenses

Miscellaneous expenses will also come up while you are suffering from your disability and unable to do any paid job. Having enough money to still sometimes make yourself happy such as going for dinner and even attending birthdays and other celebrations with friends, will go a long way to save you from a stressful and boring life, during your period of disability.

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Disability And Disability Insurance For Doctors

Disability has been described as a condition in which the sufferer is unable to perform optimally the normal day to day functions which they used to be involved in. For doctors disability is a condition in which they are unable to attend to their patients any longer. They cannot carry out surgeries or go to clinic and all the other numerous activities which they are usually involved in.

During the course of work and over a period of time, it is possible for a doctor to develop some kind of disability or the other which can seriously impair the functions of the doctor. Doctor Disability Benefitsdescribes the way which insurance can be used to ensure that doctors do not suffer unduly in the case of any eventuality and they get disabled and unable to work.

Some of these disabilities include

1. Cardiovascular diseases and diseases of the circulatory system- this might be due to the fact that long hours are spent standing up and working. It has been noticed that a lot of doctors suffer from heart diseases and circulatory system health challenges. When these sicknesses impair and affect the normal day to day function of the doctor then his ability to function and attend to his clients is impaired.

2. Musculoskeletal illnesses- the long hours of standing and not sitting down can also affect the bones and joints of doctors. This can lead to illnesses such as rheumatism, arthritis and the likes. One problem with these illnesses is the amount of pain which sufferers go through over the course of the illness. This suffering makes it most of the times impossible for doctors to attend to patients and perform surgeries.

3. Mental disorders- doctors are also human like the people they treat and so they are also prone to suffering from whatever illness which humans suffer from. One of such problems is psychiatric illness. Some doctors while on the job have been seen and reported to have exhibited erratic behaviour. When this wrong behaviour was brought under scrutiny, they found out that the doctors were actually suffering from one mental illness or another ranging from plain depression to schizophrenia and even manic depressive disorders. All these illnesses will certainly affect the doctor’s ability to function optimally and properly. In such an instance such a doctor might be asked to stop working.

All the illnesses mentioned above and much more can deter a doctor from being able to continue to function well in the capacity which is expected of him. When a doctor suffers from any of such disabilities, it will be a thing of sadness if such a doctor does not have an insurance plan. A disability insurance plan is a kind of insurance plan. If a doctor takes out a policy which has disability insurance as the thrust of its focus, such a doctor is better placed to ride out the waves of life which such disability has thrown at him.

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