Global Warming

Global warming is reality. Ocean levels will rise. Low-lying countries will disappear. River deltas, like Nile, will either be covered with salt water or salt water will invade groundwater table making irrigation agricultural impossible. Since deltas are a major source of food production around world, food supplies will diminish. Climatic zones will move North and South from Equator. While North American wheat belt will go north, it will take centuries for Taiga soil to evolve to point where it can support commercial wheat production. As global warming continues and population grows, food production will fall. Within thirty years, there won't be any food exporting countries. The economic bubbles that are India and China will have burst and struggle will be to feed people not to export goods to West.

There are scores of environmental problems whose bills will become due in next fifty years. We lack resources and technology to meet challenges of these costs. The Mother of All Depressions will be followed by a Multi-Century Dark Ages.

Your Family's Lifeboat Options

If you're over 50 years of age and without descendants, you need not worry too much about future. You won't be around when things really turn bad. If you have a family and want to see your children survive future, there are some steps you should consider taking now:

1. If you live in a country that is likely to have severe economic and environment problems in this Century, immigrate now. Canada or New Zealand should be your first choices. You should consider Australia, Western Europe and United States. Immigration is difficult, but it is certainly possible.

2. Anyone under 40 years of age should have some skill that would be needed in a Depression where local currency has become worthless. For instance, if your profession is in construction, agriculture or medicine, you have such barter skills. If you are a store manager or a bureaucrat, you should consider developing a useful hobby, like gardening, canning, or fishing, into a barter skill. You should encourage your family members to do same.

3. Globalize to Survive. While governments discourage their citizens from moving assets offshore, it is essential to do it for long-term survival of any family. If your children must move to another country, having money to do so is essential to making a success of life in their new home. It's not that difficult to open an offshore bank account or create a foreign corporation. It's a wise insurance policy against an uncertain and probably bad future.

If you disagree with my view of future, make a copy of this article and read it again in twenty years. If you believe that preponderance of evidence supports my vision of future and want more detailed advice on how to function in a world gone mad, email me at: Beowulfinvestments@Earthlink.net

Renewable Term - Term Insurance that may be renewed for another term without evidence of insurability.

Single Premium Policy - Where a single lump sum is paid for an insurance policy.

Sum Insured - The amount of money that is guaranteed to be paid under an insurance policy, before any bonuses are added.

Surrender Value - Not applicable to all life insurance policies. The amount that an insurance policyholder is entitled to receive when he or she discontinues coverage

Term Insurance - Provides policyholder with protection only. Life insurance payable to a beneficiary only when an insured dies within a specified number of years (the term). If you live beyond term you do not receive any payment. This is thought to be cheapest type of insurance.

Terminal Bonus - This is an extra bonus determined when a death or maturity claim is paid. Terminal bonus is often only paid if policy has been in-force for a minimum number of years at claim time. The amount is dependent upon profits made by insurance company.

Unitised With Profits Fund - Also known as a Unit-Linked With Profits Fund. A type of Life Fund that can invest in UK and overseas shares, property, fixed interest securities and cash. When you invest in this fund through an insurance policy, you buy 'units'. When an annual bonus is declared, you can either receive more units or it is added to unit price on a daily basis. Due to addition of bonuses unit price does not reflect value of underlying investments.

Unit-Linked - Also called Unitised. If your insurance policy is unit-linked, some of your money is used to purchase 'units' in a fund. The value of your policy at maturity is dependent upon growth of fund in which policy is invested. Generally refers to policies that offer protection and saving such as endowment insurance, whole life insurance and investment bonds.

Unit-Linked Single Premium Bond - A single lump sum life insurance policy where your investment is spread over a number of Life Funds.

Whole Life Insurance - Whole life insurance provides a death benefit for policyholder as it builds up cash value. The policy remains in force for lifetime of insured, as long as premiums are paid according to policy agreement. You can choose insurance that pays out on death a guaranteed sum only, sum plus any bonuses that have been added, or sum plus any additional value from growth of funds invested in.

Without Profits - When a policy reaches maturity or policyholder dies, amount paid out is basic guaranteed sum only. You would not be entitled to any bonuses.

With Profits - Relates to insurance policies that combine investment with protection. This type of policy is entitled to a share of profits made by insurance company. Premiums are invested in with profit fund, reversionary bonuses are applied usually on an annual basis which reflect investment growth of fund assets. On death and/or maturity a further terminal bonus might be applied to fund value.

With Profits Bond - An insurance policy where your lump sum is in most cases invested in a Unitised With Profits Fund (which is listed under Life Funds section).

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First Hand Insurance are Life Insurance and House Insurance specialists in the UK.