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98 - Insurance Planning and Risk Management (4) If an individual has no dependents, this approach to determining his or her value would result in a value of zero Disability insurance A The difference between income needs (ie, expenses) and income sources is the nancial risk in the event of an illness or accident that results in disability B Having no dependents may eliminate the need for life insurance, but an individual with no dependents still has a need for disability insurance C Disability payments generally do not go on for life and commonly end at age 65 As such, protection should be provided for the worst possible outcome disability for life It is important that the disability protection program help the individual save for retirement just as it would if he or she were without disability Long-term care insurance A The United Seniors Health Council (a nonpro t organization) recommends that individuals buying LTC insurance meet a minimum threshold before purchasing it in order to afford premiums to continue coverage: $75,000 in assets in addition to a home, plus a yearly income of $25,000 for singles and $35,000 for couples B It is generally advisable to purchase LTC insurance when an individual is around age 60 At an earlier age, it is dif cult to determine how much coverage an individual needs and what facilities are needed C The amount of coverage is determined in a similar way to life insurance: Take the present value of the estimated future expense that is necessary to support an LTC facility Health insurance A The primary consideration for health insurance is protection against catastrophic loss B There is generally a ve-step process for determining the ideal health plan (1) Select the plan that best meets the family s needs (2) Analyze the coverage of the plan in regard to the medical needs of the family (3) Choose a reasonably priced plan offering the most desirable services (4) Check the quality of care this information can be obtained from the National Committee for Quality Assurance (a nonpro t organization) (5) Check the location and accessibility of the medical facility Property insurance A Insure against signi cant risk, and bear the small risks that can be nancially covered B Reduce risk through preventative measures (such as antitheft devices for homes and cars) Liability insurance A It is imperative that the liability limits of the homeowners and auto policies are coordinated with the deductible under an umbrella policy For example, assume an insured has a $100,000 limit under the homeowners and auto policies but has a $300,000 deductible under an umbrella policy If a claim is $500,000, the rst $100,000 is covered under either the homeowners or auto policy, and the amount of $300,000 is covered by the umbrella policy, but the gap of $200,000 is not covered B It is often recommended that the homeowners, auto, and umbrella policies be purchased from the same insurance company to avoid any gaps in coverage C The amount of liability insurance should be based on the risk exposure of the individual this is commonly based on the risk of a profession and the amount of personal assets and income that is exposed to claims and lawsuits.



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Data modeling consists of definining entities and their attributes, and then relating those entities to each other An entity corresponds to a logical concept or object and contains attributes that distinguish each instance In the example at hand, it seems reasonable to have an EMPLOYEE entity and a DEPARTMENT entity The attributes for the EMPLOYEE entity are NAME, HIRE_DATE, SALARY, and DEPT_NAME (shorthand for "department name") The attributes for the DEPARTMENT entity are NAME, BUILDING, and FLOOR These two entities and their attributes are diagrammed in Figure 10-1 Figure 10-1 EMPLOYEE and DEPARTMENT entities

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Topic 33: Insurance Policy Selection - 99





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One of our example's requirements is that an employee works for a department More specifically, we'll suppose that every employee works in only one department and that each department has at least one employee The way to write this model using standard entity-relationship (E-R) notation is shown in Figure 10-2, which we read as

Property Queue Explanation Under this property, the print queues served by this printer are indicated. Each queue has a n attached list. This is where priority queues are defined - each queue is assigned the required priority. "printer Type"defines whether the printer is a parallel or a serial printer, and wether it is a PC, UNK, or Mac printer.

If our example is changed to say that a department may have zero or more employees, our E-R modeling will contain notation to indicate this, as shown in Figure 10-3 Figure 10-3 Zero-to-many relationship

This topic is covered under various other topics, as follows: Disability Income Insurance Topic 27, Section 6, Taxation of bene ts Long-Term Care Insurance Topic 28, Section 8, Tax implications and quali cations Life Insurance Topic 29, Section 8, Tax issues and strategies, and Section 9, Policy ownership issues and strategies

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Before you edit the registry in any way, you should create or update the system s existing emergency repair disk. This way, if you make a mistake, you can recover the registry and the system. Details on how to back up and restore the registry for Windows XP and Windows Vista can be found in Microsoft knowledgebase article 322756 (http://support.microsoft.com/kb/322756).

So, we've shown how our simple example can be modeled The nature of the relationship between entities (one-to-many, zero-to-many, many-to-many) is also known as cardinality There are some other symbols and paradigms of E-R modeling, but Figure 10-3 captures the basic spirit of phrasing data organization in terms of entities and relationships, the latter qualified by cardinality

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Now that we've briefly discussed how a database is logically designed, our focus shifts to how a database is physically designed The logical/physical approach is a recurring theme in database systems As it turns out, strategies at both levels can have a significant impact on database scalability and performance

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