Finance Budget 2015: Super-Flop For The Automotive Industry

The very first full-term budget of FY-16 laid down by the new central government was lack-luster for the automotive industry.

Many issues were raised in the past by the Indian automobile manufacturers, like the lowering of base interest rates on sale of cars, additional excise cuts, faster implementation of Goods and Services Tax but none of them seem to have been met apart from allocation of Goods and Services Tax.

The Finance Minister of India, Mr. Arun has stressed on the faster implementation of infrastructure projects to promote industrial growth in this budget.

Budget Details

• An assurance for speedy implementation of the Goods and Services Tax has been given by the central govt. which will bring it into effect from April 2016.This implementation will help to create an unbiased and uniform tax structure across all the various states of India.

• The excise duty was lowered by a narrow margin. Now it is 24%for the SUVs, 20% for the mid-sized cars and 27% for the large cars. For the smaller-sized cars, it has been hiked up from 12% to 12.5% this means that car prices will either remain the same or increase marginally, but will not decrease at any cost.

• Excise duty on the chassis for an Ambulance has been cut down from 24% to 12.5%.

• Corporate tax has been reduced (30% to 25%). This will help to indirectly promote growth within the automotive industry and will give them a chance to recover 5% of their funds. This tax-cut is expected to begin from next year.

• The custom duty for all fully built and imported commercial vehicles has been increased to about 20%.

• An impetus for production of green vehicles has been proposed to the tune of INR 75 crore under the Faster Adoption &Manufacturing of Electric Vehicles (FAME) scheme. The excise duty discount EVS will be maintained.

• The demand to ask banks and other financial institutions to lower the interest rate on vehicles and vehicular loans has not been secured.

• INR70,000 crore will be invested in laying of about one lakh Kilometres of asphalt roads across the country especially rural areas.

To summarize, this budget was really measly for the Indian automotive industry. Nothing has become cheap for the hardworking consumers. The companies can somehow hope to recover a lost revenues due to the cut in excise duty but that will amount to INR 1000 per car only.

For companies grappling to meet their demand-supply schedule, this isn’t enough. Only a miracle can now save the automotive industry from the current turbulent state it is currently in. The chump change allocated in this budget won’t make a very big difference!

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The DNA Household Finances Strategy

Today, Canadians continue to rack up debt at an alarming rate. Canadians are proud that we rode out the recession with minimal damage. We forget that it left us unscathed, mainly because we borrowed and spent our way through it. Most countries reduced household spending and increased savings.

Canada’s household debt at an astounding 153 percent of disposable income is headed for the tipping point of 160 percent that the United States personal disposable income hit before its crisis, over three years ago. Interestingly, these days, Bank of Canada Governor Mark Carney, and Finance Minister Jim Flaherty are hoisting red flags about household debt, signaling that it is a huge risk to the financial system. However, they are part of the problem, and so consumers are not listening to them. Why should they? It is Canada’s record low-interest rate policy that is driving consumers to spend recklessly.

Sixty percent of Canadians polled recently by RateSupermarket.ca indicate that they are uncomfortable with their current debt level. A majority of the 2,929 respondents cited everyday expenses for their debt. Canadians continue to deflect responsibility for their decisions to credit, financial institutions, everywhere.

Mortgage rates are low and fueling excessive spending on residential homes. Average housing prices at twelve-times disposable income concerns me. In the previous housing crisis in the late 1980s, it was ten-times. What’s more, at the end of 2011, residential housing investment as a percentage of GDP was 7%, the same level as in the 1980s crisis; the 50 year average is 5.8%. In the U.S., in the mid 2000s, this ratio peaked about 6 percent, and housing crashed shortly after. As well, Japan’s housing market collapsed just after that ratio peaked in the 1980s. Will things be different here? I do not think so.

Many households are at risk, but few are doing anything about it. Still, they buy homes and consumer items with cheap credit. I suggest households embrace this DNA Household Strategy as the first step in behavior adjustment, before Canada’s impending personal financial crisis wallops many individuals.

Individuals in each household needs to declare detente, withdraw to the neutral zone, and then start to attack their debts.

Detente

Detente is the easing of hostility or strained relations, especially between countries. How does this apply to households? With whom do they have hostilities or strained relations? Individuals in households confront personal lifestyle choices daily. Cheap credit, seductive finances, fancy grown-up toys, tempt us continually. How can we resist unless we recognize this, and plan to deal with it?

That’s why I suggest each person should stand in front of a mirror to declare detente with him, her…you! You the spendthrift, you the impulsive buyer, you who like grown-up toys decide to stop hostilities against your credit. Stop it now! Agree to end the pulling and tugging, which credit wins every time.

Formalize this decision by signing a covenant indicating that for at least one year, you will refrain from using credit cards, credit lines; all credit forms. As well, agree not to buy consumer items unless you need them to fulfill a legal, moral, ethical, or health reason. Get a trusted friend to witness this agreement, and to hold you accountable to stay with it. This is the start of detente.

Neutral Zone

After signing this covenant, withdraw to the neutral zone to develop a new approach to lifestyle choices. First, cut up all credit cards and decide to start working with a spending plan. Next, resolve to use cash or checks only, and then, exclusively for items in your budget. In the neutral zone, you do not go shopping, respond to sales, deals, or tempting financing. When the urge to spend impulsively comes, read your detente statement, which you should have with you always. Remain in the neutral zone until you repay all consumer debts, and lower your mortgage to a comfortable level.

Attack

The third plank of the DNA strategy is the attack phase: start attacking your debts. First, prepare a debt repayment schedule, next, a material worth statement, and then, a plan to use to talk with your creditors.

A debt repayment schedule, as the name implies, lists your debts and shows this information: Amounts owing, creditors, interest rates, monthly, twice weekly, or other payment period, and expected dates when at current repayment, you will repay each debt.

Your material worth statement, akin to a balance sheet, lists all items you own at values someone would pay for each (market value), less your debts, to yield your net equity. Review this statement to see whether you could sell items to lower debts. You might conclude that you should sell your house to lower your debts and ongoing expenses and rent until your circumstances improved. These are major decisions. Discuss them with a trusted independent advisor; pray about them. Remember, you got in debt over an extended period, and so it is likely that you will get out over a long stretch. That’s why you must forget the home run, be patient, and stay with the program.

After doing these statements and your budget, you will know your financial health and will be ready to talk with your creditors about relief. Be humble, polite, and realistic. Financial institutions prefer dealing with you instead of debt collection agencies. If you are sincere, truthful, and have a well-thought-out plan washed in prayer, they are likely to give some relief on interest rates or amounts outstanding; most likely, interest rates.

Conclusion

No longer is the question, will we have a household debt crisis? It is, when will this happen? The answer is, probably in one to two years at the latest.

Canadians cannot continue the current rate of spending on consumer items with cheap credit. Housing activities cannot keep going at the present pace. Something must give. Interest rates must start creeping up. Are you ready for the storm?

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Solve Funding Issues to Finance SME’s Growth Plans

SME’s are developing rapidly and flourishing enormously worldwide. Since its initiation and establishment, there some extremely important and basic requirements to be met and adopted. These requirements include; infrastructure and employment requirements, a developed information technology infrastructure along with funding sources, which is the most important aspect of the sustainability of these SME’s.

Funding sources are the strengthening pillars for such small and medium-sized enterprises.

SME (small to medium enterprise) is a convenient term for categorizing businesses and other organizations that are somewhere between “small office-home office” (SOHO) size and the larger enterprise.

Unavailability of timely and adequate funds has an immense adverse effect on the growth of these SME’s which in turn affects the growth of the Indian economy. Such insufficient funding sources serve as the crucial barrier in the development and sustenance of SME’s.

The economic development in India is hugely dependent on the performance of small or micro and medium enterprises. They are the powerhouse of innovation, entrepreneurial spirit and enormous talent, which is required for the nation’s development in the economic sector.

Indian SME sector:

This sector contributes to the industrial output, provides employment to masses. They also contribute widely in exports. These organizations produce quality products for national and international markets.

The presence of SME’s is greatly acknowledged. The manufacturing sector is rapidly advancing because of the contribution of these organizations.

Undoubtedly, these SME’s are performing their best, despite their limited sources. Still, there are multiple cases of these organizations facing funding issues.

The solution for funding issues faced by SME’s:

The government has been taking initiatives like setting up the National Manufacturing Competitiveness Council, announcing National Manufacturing Policy (NMP) and much more to energize and boost the manufacturing sector.

Banks have made stable strides to support SME’s. However, such approaches by banks for funding are limited and restricted because by controlling and managing risk, they ultimately create value. Thus, banks are not always a rightful solution as a funding source.Access to capital markets is rare, in the case of SME’s. Therefore, such organizations hugely depend on borrowed funds from some financial institutions and banks.

Mostly commercial banks provide extended working capital and financial institutions provide investment credits. Universal banking services, working capital, and term loans are becoming available for SME’s for funding.Meanwhile, the traditional requirements of finance are still actively in use, for creating the asset and working capital.Globalization is generating a demand for introduction and development new financial and support services.

The RBI should issue necessary guidelines to all banks on credit flow. Moreover, the Government should work rigorously to create an environment conducive for growth for the SMEs that restrains the need for capital and debt.

Setting up SME-targeted banks that provide priority to lending to the SME sector.

Financing schemes for SMEs can be formulated and be beneficial. These might be highly risky, but promises great returns. There is also a need for a reduction in the interest rates. SMEs has been paying high-interest rates for bank loans. The loan structure should restructure, on an urgent basis as lower interest rates are an extremely important need for SME’s.

Delayed payments are yet another major area of concern for SME’s that lead to reduced working capital.

Recycling of funds and various business operations are majorly affected due to delay in dues settlement. Defaulting customers are mostly large enterprises and the SMEs due to fear of losing business are not able to report against them.

An automated portal could be established by the government, wherein SMEs makes available their customer detailings.The government can also send automated reminders to defaulting organizations, in the cases of payment defaults.

As it is well known all over that, for the government, the Budget is an occasion to set up new financial goals and economic goals, allocate financial resources and provide policy directions. During Budget presentations, the Finance Minister announces new policies, schemes, projects and allocates finance for the development of several sectors of the economy, to meet the overall goals of socioeconomic growth.

For SMEs, the potential sources of finance are very limited. However, their usefulness is limited because of mostly practical problems. Crowdfunding also supplies chain financing are some funding sources.

Some more funding sources for SME’s

The owner, family, and friends of SME

An excellent source of finance. Mostly, such investors, invest not just for financial gains and are willing to accept lower returns than other investors. However, the key limitation, for most of these organizations, is that, that the finance they can build personally, from friends and family, is limited.

Trade credit

SMEs can take credit from their respective suppliers. It is however just short-term and, if the suppliers are big companies who have identified and categorized them as potentially risky SME, the possibility to extend may be limited, for the credit period.

The business angel

A wealthy individual who is willing to take the risk of investing in SMEs. However, they are just found in rarity. Once such an individual is interested they can become useful to the SME, as they have great business plans and contacts.

Factoring and invoice discounting

These sources help the organizations to raise finance. It is only short-term and is mostly more costly than an overdraft. However, with the SME growth rate, their receivables will grow thereby the amount they can borrow from invoice discounting will also rapidly growing.

Leasing

Leasing assets is a better option rather than buying.them, as it avoids to raise the capital cost. However, leasing is mostly possible on tangible assets.

Listing

An SME can become quoted by acquiring a listing on the stock exchange. Thus, raising finance would become less of an issue. But before listing can be considered the organization must grow to the considerable size that a listing is feasible.

Supply chain financing

SCF is new and is somehow different than the methods of traditional working capital financing, such as offering settlement discounts, as it promotes collaboration between the buyers and sellers in the supply chain.

The venture capitalist

A venture capitalist organization is mostly a subsidiary of a company that has worthy cash holdings and might need to be invested. Such subsidiaries are at high-risk, potentially high-return part of their investment portfolio. To attract venture capital funding, such organization has to have a business strategy and idea, that may help to create, high returns that the venture capitalist is seeking. Thus, operating in regular business, venture capitalist financing may be impossible for many SME’s.

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Canadian’s Personal Finances Fiscal Cliff: Are We There Yet?

Today we hear much talk about the USA’s economy approaching the so-called “fiscal cliff.” What about your personal financial affairs? Are you at the fiscal cliff as we inch toward 2013? Canadians are swamped in debt. Monthly, we read about the rising debt-to-disposable income ratio that stands now at around the precarious 164% level.

Although the world and many at home commend our government for its brilliant fiscal management, few warn about the unsustainable personal debt levels. Indeed, our central bank chief, Mark Carney, accepted an appointment to a similar role at the prestigious Bank of England. Will his legacy here be that of hero or villain? Will history show that he held interest rates low for too long, encouraging many folks to take on debt they cannot afford?

To his credit, he, our finance minister, and prime minister have been warning Canadians about these dangerously high personal debt levels. However, Carney could curtail the rise by raising interest rates. Sure, higher rates will dampen current slow economic growth. Even so, I think short-term pain is better than the likely personal finances’ crash that might happen if debt remains at present levels, or grows.

What can Canadians do to avoid their fiscal cliff? Let us examine three vital steps.

Accept you are dangerously leveraged.
Set a mechanism in place to live with declining debt
Develop a new vocabulary to guide your behavior
Accept You Are Dangerously Leveraged

You can’t solve a problem unless you recognize it. Do you think you are carrying too much debt? Your banker might tell you no; however, you alone can answer this. Take a helicopter view. What are you and your family’s emotional responses to your debt? Are you worried? Can’t sleep? If yes, you have too much debt. Certainly, look at ratios, but this is the key barometer.

The emotional cost of debt is the first and the most significant cost. If debt is 10% of income, and is causing problems for you or at least one in your family, it is too much. Still, you must accept reality and decide to live with it, take on no more, and start a debt free lifestyle.

If you are a Christian, give this emotional stress to Jesus (Matthew 11:28).

Set A Mechanism In Place To Live With Declining Debt

People are impatient. We live in a now society. Sadly, probably you got into debt over a long period, and it is likely you will get out over an extended time. Accept this fact and learn to live with it.

Develop a strategy to live in your debt. Look at how you got there; draft principles to prevent a recurrence; and then write a financial plan – alone or with help. The plan should show concisely how, by following your principles, you might be debt free in a specific time.

If you got into debt by impulsive spending, you might develop a principle never to buy without a list and a budget. As well, when you feel you need to spend, you might want to wait 24-48 hours during which time you would talk with your spouse or accountability partner.

You will have to find what might work for you, decide if you need help, and try to get it.

Prepare a debt-meter and place on your fridge. Monthly, as you repay debt, adjust the debt-meter.

Develop a new vocabulary to guide your behavior

This sounds easy, is simple, and when you get it, will be your most effective debt control “tool.” What you believe will decide how you behave. If you believe emergencies happen and cause you to spend erratically, you won’t change your behavior. However, if you believe that apart from the timing, most “budget emergencies” can be planned and should be planned by setting aside funds regularly to meet them, you will plan accordingly.

Your car will need repairs. It will need new tires. Your furnace will go, and so on. The issue here is timing. You don’t know when these potential budget busters will happen. Even so, you know they will occur, so create a capital fund, a rainy-day fund, emergency fund, or some other means to save for these predictable events. If you accept this fact about emergencies, and understand that to get there you must sacrifice today’s consumption, this is the start of your major victory over debt.

Another key vocabulary change is to accept that you can’t mange money, you can manage only your behavior – change from money management to lifestyle management.

Summary

As we enter 2013, look at your finances. You will know if you are at the fiscal cliff. Rest assured, you do not need more money to get you through, first, you need to accept where you are. Next, set a mechanism to live where you are as you work off your debt. Then examine your vocabulary, your beliefs, and adjust them to reality.

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UK Finance Minister Outlines Thinking on Bonuses

The British Chancellor of the Exchequer Alistair Darling has been intimately involved in the creation of the modern British regulatory landscape, but all this may be about to change with a General Election due within 10 months. He also succeeds arguably one of the most successful Chancellor’s in the 21st Century – the current Prime Minister, Gordon Brown – just as Tony Blair has been a tough act to follow, Darling has had to step into Brown’s shoes at The Treasury. Darling has remained silent all week since the announcement of the opposition Tory party’s proposals for the abolition of the FSA; handing prudential financial oversight to the Bank of England, a general carve up of the FSA and probable delay on RDR commitment. Today, that changed with an interview published in a leading, left-wing publication, The Tribune.

Darling on Bonuses

Bonuses are going to be a sticky issue for regulators, politicians and employers – “Bonuses are Back!” may be the cry on the Square Mile, after all, if it’s being earned they’re going to be paid or risk losing competitiveness. Darling’s response is that many bank and financial sector employees only have a job today because of the taxpayer monies used to bail out the sector and shore up the banks. For banks now owned by the UK Government, there will be no bonuses this year;

First, we do have restrictions on the banks we own in terms of bonuses; they can’t get cash bonuses this year, it’s got to be deferred, it’s got to be capable of being clawed back, the people who failed can’t get rewards and they always have to be linked to long-term success.

The interim Walker report on working practices and pay structures including bonuses, published a couple of weeks ago, seems to simply state bankers should worry about doing the job they are already being paid to do. Darling disagrees in that Walker is going further; bankers did not do their jobs to begin with which is why we ended up in the global economic mess culminating in the near-miss, banking collapse. As Darling states,

One of the causes of the trouble is that they were not doing what they were supposed do be doing. Too many of them patently didn’t even understand what was going on in their own banks.

When pressed on disclosure of who actually is paid a bonus, Darling rightly concedes that naming the recipient poses issues outside of transparency and financial regulation; after all, I certainly would not like my name published anywhere with a big number printed after it – there is a dividing line between personal security and public disclosure, though directors at the Co-Operative Bank have been making personal identity disclosure without issue. With the FSA under political fire from the Conservatives, who announced they would dismantle the regulator if elected, Darling’s responses give some insight into why Labour wants the FSA to remain and enjoy enhanced power. For instance,

A lot of these people have got to realise they just would not be working today if they did not have the insurance policy provided by the British and American taxpayers and others. That’s why it is right that the Financial Standards Authority now has the power to say to a bank that they don’t like the pay structure of a bank, it’s too risky, you can’t do it.

Also when questioned on Walker’s proposal for a voluntary rather than statutory regime, Darling’s response was,

We have gone beyond that with the FSA and its new power to say we don’t like your pay structure, it’s too risky. That’s not voluntary, because ultimately the FSA can put you off the road.

This fundamentally underlines the difference between Labour and Conservative thinking on who will regulate the banks and financial sector – Labour clearly envisages an FSA with a very wide-ranging remit and the power to assert itself in virtually any aspect it sees fit. The Conservative focus beyond dismantling the FSA is yet to become clear, but it is reasonable to assume at this stage that they see a return of the Bank of England as the banking regulator and not as an “academic” body as Labour Minister Lord Myners recently put it. The Tribune article focused on pay structure and especially bonus payments, it’s to be expected from a socialist paper, but Darling fielded answers which did take the position that pay and bonuses are actually one commercial factor to be taken into account when dealing with banks who received bail-out monies. As he went on to say,

I think, in relation to telling the banks what to do, there is a broader question.

The interviewer’s observation of Darling when the question regarding a National Maximum wage is as telling as the Chancellor’s response:

What about a national maximum wage? Darling’s jaw drops discernibly amid a slight shudder: “People who call for these things are the same people who argued against a national pay maximum in the 1970s. I don’t think pay restraint or arbitrary controls work.”

This article was commissioned by ComplianceAsia, the leading APACS region provider of outsourced compliance support for leading banking and financial institutions operating in the region.

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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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