Chemicals

Industrial society has introduced or increased human exposure to thousands of chemicals in the environment. Examples are inorganic materials such as lead, mercury, arsenic, cadmium, and asbestos, and organic substances such as polychlorinated biphenyls (PCBs), vinyl chloride, and the pesticide DDT. Of particular concern is the delayed potential for these chemicals to produce cancer, as in the cases of lung cancer and mesothelioma caused by asbestos, liver cancer caused by vinyl chloride, and leukemia caused by benzene. Minamata disease, caused by food contaminated with mercury, and Yusho disease, from food contaminated with chlorinated furans, are examples of acute toxic illnesses occurring in nonoccupational settings.

The full toxic potential of most environmental chemicals has not been completely tested. The extent and frequency of an illness are related to the dose of toxin, in degrees depending on the toxin. For chronic or delayed effects such as cancer or adverse reproductive effects, no “safe” dose threshold may exist below which disease is not produced. Thus, the cancer-producing potential of ubiquitous environmental contaminants such as DDT or the PCBs remains undefined.

Radiation

Ionizing and nonionizing radiation can produce both acute and chronic health effects, depending on dose levels. The effects of nonionizing radiation at lower dose levels are uncertain at present. Ionizing radiation at high doses causes both acute disease and delayed effects such as cancer. Victims include workers exposed to various occupational use of X rays or radioactive materials. Although the disease-producing potential of ionizing radiation at low doses is also uncertain, an increase in chromosome damage has been observed in workers in nuclear shipyards.

Physical Hazards

Major physical hazards include traumatic injuries and noise. Trauma arising from unsafe environments accounts for a large proportion of preventable human illness, and noise in the workplace is responsible for the most prevalent occupational impairment: hearing loss or permanent deafness.

FORMS OF ENVIRONMENTAL DISEASE
Environmental diseases can affect any organ system of the body. How the diseases are expressed depends on how the particular environmental agent enters the body, how it is metabolized, and by what route it is excreted. The skin, lungs, liver, kidneys, and nervous system are commonly affected by different agents in different settings. Of particular concern is the capacity of many environmental agents to cause various cancers, birth defects or spontaneous abortions (through fetal exposure), and mutations in germ cells, the last-named raising possibilities of environmentally caused genetic diseases in later generations.

Environmental illnesses can be mild or severe and can range from transient to chronic, depending on the doses of toxin received. Some diseases occur abruptly after a toxic exposure, whereas the time of onset of other diseases varies after exposure. Environmentally induced cancers, for example, commonly involve latency periods of 15 to 30 years or more. Those illnesses that occur directly after a distinct toxic exposure are usually easily identified as being environmentally or occupationally caused. If the exposure is not clear-cut or illness is delayed, however, the cause is difficult to identify, as clinical features alone are usually nonspecific. In addition, many different causes, environmental or otherwise, may produce identical illnesses. In such instances, epidemiological studies of exposed populations can help relate exposures to the illnesses they cause.

OCCURRENCE

Total frequencies of environmental illness are difficult to measure because of the reasons just described. When causes can be identified, however, scientists observe that frequencies of occurrence of a particular illness vary directly with the severity and extent of exposure. Particularly frequent in the workplace are skin lesions from many different causes and pulmonary diseases related to the inhalation of various dusts, such as coal dust (black lung), cotton dust (brown lung), asbestos fibers (asbestosis), and silica dust (silicosis). Environmental agents can also cause biological effects without overt clinical illness (for example, chromosome damage from irradiation). The health significance of such subclinical changes is not yet clear.

AGENCIES AND LAWS

The regulation of workplace practices and of potential environmental pollution has evolved as the use of chemicals and human exposure to potential toxins have grown more widespread and complex in modern society. In the United States, numerous laws are directed at protecting occupational and environmental health. Most were passed since 1960, including the Occupational Safety and Health Act of 1970 and the Resource Conservation and Recovery Act of 1979. Means for the rapid cleanup of toxic waste dumps were provided in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980.

Federal agencies responsible for enforcing such environmental and occupational health laws consist principally of the Environmental Protection Agency and the Occupational Safety and Health Administration (OSHA) within the Department of Labor. The Food and Drug Administration, within the Department of Health and Human Services (HHS), and the Department of Agriculture have regulatory responsibility for preventing the contamination of food supplies. Federal field investigations of potential environmental and occupational hazards are handled through the Center for Environmental Health and the National Institute for Occupational Safety and Health, which are components of the Centers for Disease Control, within HHS. General environmental health research and toxicological testing are directed through the National Institutes of Health and the National Toxicology Program, also within HHS. Comparable regulations and agencies at state and local levels, working with their federal counterparts, play a crucial role as well.

International coordination of environmental and occupational control activities in many countries is guided through the World Health Organization. In the developing parts of the world, such activities are of critical importance as modern industrialization proceeds in the face of poverty and growing populations

Human Disease

Human Disease, in medicine, any harmful change that interferes with the normal appearance, structure, or function of the body or any of its parts. Since time immemorial, disease has played a role in the history of societies. It has affected—and been affected by—economic conditions, wars, and natural disasters. Indeed, the impact of disease can be far greater than better-known calamities. An epidemic of influenza that swept the globe in 1918 killed between 20 million and 40 million people. Within a few months, more than 500,000 Americans died—more than were killed during World War I (1914-1918), World War II (1939-1945), the Korean War (1950-1953), and the Vietnam War (1959-1975) combined.

Diseases have diverse causes, which can be classified into two broad groups: infectious and noninfectious. Infectious diseases can spread from one person to another and are caused by microscopic organisms that invade the body. Noninfectious diseases are not communicated from person to person and do not have, or are not known to involve, infectious agents. Some diseases, such as the common cold, are acute, coming on suddenly and lasting for no more than a few weeks. Other diseases, such as arthritis, are chronic, persisting for months or years, or recurring frequently.
Every disease has certain characteristic effects on the body. Some of these effects, called symptoms and signs, include fever, inflammation, pain, fatigue, dizziness, nausea, and rashes, and are readily apparent to the patient. These symptoms offer important clues that help physicians and other health care professionals make a diagnosis. Many times, however, the symptoms point to several possible disorders. In those cases, doctors rely on medical tests, such as blood examinations and X rays, to confirm the diagnosis.

FAQ Equity Loan (Finances)

Q: I have a 2-year-old daughter. What is a good way of establishing a college fund for her, and about how much should I be setting aside?

A: The best way to get started is to figure out how much money you will need. When you see how much more you have to save each year, it’s a great incentive to start saving!

There are several ways to start saving now for your child’s college education. You can ask friends and relatives to include a small check along with any gift for birthdays and holidays. Then create a bank account specifically for these contributions and show your child how the balance is growing. Studies show that kids work harder at school when they see tangible evidence of college savings and the importance of their hard work.

Another option to consider is an Education IRA, which you can contribute to until your child reaches age 18. There are income limits, however, so you’ll need to find out if you qualify. If you sock away $500 each year (the maximum amount) in the Education IRA for 15 years and earn a 10 percent annual return, you’ll have $15,000 to help pay for your child’s education. Of this amount, you can withdraw $9,000 tax free.

You may also be eligible for a state education plan called the Prepaid Tuition Plan, also often called a U Plan or U Fund, which allows you to buy future college credits at today’s tuition. This Section 529 plan gives you another way to save for your child’s college expenses on a tax-advantage basis.


Q: Should I wait until I have a buyer for my house before putting a down payment on a new one?

A: This question is a lot more complicated than it once was, as mortgage lenders don’t offer “bridge loans” the way they used to. With bridge loans, the lender would lend you the down payment on your new house until your old house sold. So you could find your new house and even close on it before you had a seller for your old house. Those bridge loans are harder and harder to get.

The best thing to do is to become a smart house-shopper. At the same time that you are perusing neighborhoods and checking out schools for your new home, get the best information about how much your existing house will sell for and what small improvements you can make to it that will really increase its value. Ask a couple of experienced realtors to look at your current house and give you a market analysis. When you find the house you want to buy, you will have done everything in advance so that you can put your own house on the market immediately. Sometimes a seller will allow you to put a contingency in your agreement that you are not obligated to buy their house until you have a buyer for your own. Unfortunately, this practice is quickly becoming a thing of the past, so don’t count on it. On the flip side, if you sell your current house before you find a new one, your only real risk is finding temporary housing for a few months. If you have kids in school, you’ll need to make sure there is short-term rental property in their school district.

The bottom line? Know how much you can afford, get your current house ready to go on the market at a moment’s notice, get preapproved for a mortgage, and be ready to pounce when you find the house you want.


Q: Can I improve my financial situation by hiring a financial planner, even if I make less than $30,000 per year?

A: I admit that I am biased on this subject, but everybody needs a financial plan, and most people need a financial planner at some point in their lives. In fact, the less money you make, the fewer mistakes you can afford—and the more professional advice you need. But let’s distinguish between a financial plan and a financial planner. If you have a computer, enjoy using it, and are self-disciplined, I highly recommend using financial-planning software. The programs available today are inexpensive (unlike back in the 1980s, when they cost about $10,000), follow an easy question-and-answer format, and have fun features like DB2 graphs, year-by-year projections, and easy ways to play scenario games. (What if I retire three years earlier; what if my child goes to a public college instead of a private one; what if I inherit $1 million, or $1,000; what if my company’s stock takes off, or what if it tanks?) These programs go a long way toward helping people plan their financial futures.

Now here’s the value of a professional financial planner: This person can act as an impartial mediator to help you and your spouse or partner work better together with your money. A financial planner can make you feel more accountable about your spending and saving and can prod you nicely to meet with him or her on a regular basis to keep you on track. I have been a financial planner for 25 years, but even so I don’t trust all of my own investment and financial decisions to myself. Simply put, I’m too emotional because it’s my money. Objectivity is one of the best things a financial planner can give you. (Plus, your family has someone else to blame besides you for making certain financial decisions that may not have worked out!)


Q: What potential tax benefits do home equity loans offer? What are the dangers?

A: Home equity loans often offer the advantage of tax-deductible interest. If you are making home improvements, a home equity loan is an ideal way to do this. Home equity loans usually have a lower interest rate than consumer loans, such as credit cards and auto loans. The danger is, this makes it tempting to transfer that debt to a home equity loan. Studies often show that within a couple of years, people who do this will have just as much or more credit card and consumer loans than before, but on top of a high home equity loan. So don’t transfer your consumer debt to a home equity loan unless you are committed to paying it off as quickly as possible and not running up those credit cards again.


Q: I live in an area where homes seem overpriced. Even though I can afford to buy a house, would it make more sense for me to continue renting until the market cools off?

A: It’s always hard to know when housing prices are on the way up, at their peak, or about to plunge. Historically, residential real estate has been a very good investment, but the values can fluctuate a lot from year to year. And it’s not a liquid investment; if you are strapped for cash, you can’t just decide to sell your house and have money in a week, as you would be able to do if you were selling stocks or cashing in a money-market account. Here are some things to consider in deciding whether to rent or buy:


* What is your local economy like? Is it still red-hot with a few signs of slowing down? A red-hot economy usually means house prices are rising rapidly, and you may have to wait awhile before those prices come down from the stratosphere. If there are signs that local companies may be having difficulties, you may want to wait a few months and see if house prices go down.

* What time of year is it? Historically, house prices are lowest in the winter.

* How long do you plan to stay in the house? Renting may be the preferred housing choice if you don’t expect to live in a place for more than a few years.

* What’s your tax bracket? If it’s less than 28 percent, all those great interest deductions you get from home interest may not make it worth it for you.

* Are apartments plentiful and cheap compared to houses? It may be that you live in an area of the country with a glut of apartments with bargain rents.

* How much of a down payment would you have? If it’s less than 20 percent of the value of the house, you have to buy extra insurance called private mortgage insurance, which can be pricey. However, there are some great programs, especially for first-time home buyers.


The bottom line? Do some research to find out about home prices in your area. Talk to a mortgage broker or bank to find out how much mortgage you would qualify for and what the monthly payment would be. Ask this mortgage expert to help you figure out whether you are better off buying or renting for now.


I firmly believe in getting your foot in the real estate market as early as possible in life. That way, what you buy will hopefully appreciate in value and make it possible for you to keep trading up houses as your needs grow. Ask any long-time homeowners if it’s been a good investment, and unless they’re dot-com millionaires they will probably tell you there is no way they could have afforded the house they own now if they hadn’t started small many years ago.


Q: I’m 34 years old and in good health. I have a great career, as well as two young children. My husband is a stay-at-home dad. About how much life insurance do I need?


A: You might hear all kinds of rules of thumb, such as the one that says you should have life insurance for five times your annual income. The problem is, life is a lot more complicated than a rule of thumb.


Some of the things you need to think about: your children’s college and other educational expenses, how much Social Security survivor benefits your family would receive, medical and funeral expenses, how much it would cost to pay off your mortgage and other debts, and any special needs, such as financial support for your parents or other relatives. Also consider how much you and your husband would be earning after taxes and child-care expenses if your husband were to go back to work part or full time.

Then there are the assets that you have that would reduce your need for insurance. These assets include retirement plans, other investment accounts, and other sources of money such as inheritances. (But you can’t count on inheritances unless they are guaranteed and in your hands because relatives can always change their minds, especially if you aren’t around anymore and your spouse has remarried.)

Now do you see why rules of thumb are made to be broken? I have worked with many young widows with young children during my career as a financial planner, and I urge you to figure out how much insurance your family needs. Then go for it! You can even shop for insurance on the Web, and more and more companies are offering “low load” (no commission) insurance if you don’t use an agent. But please be fair and ethical; if an agent gives you good advice, you should pay them, either by an hourly fee or by buying the insurance through them.


Permanent insurance pays a much higher commission to agents and can be helpful if you have a long-term insurance need such as a hefty estate-tax bill. It’s also a good way to go if you’ve got lots of extra cash, you are fully funding all of your retirement plans, and you are saving enough for all of your other goals. Otherwise, your focus should be on buying all the insurance you need as term insurance.


Q: I recently received a pay raise at work. Would I be better off paying down some of my home mortgage or paying off my car loan completely?


A: You are smart to want to pay down debt instead of blowing that pay raise on a trip or new clothes, as so many people do in the excitement of getting a raise. But before you pay down debt, here are some other things to consider:

* Are you contributing every dollar you can to your company 401(k) plan or other tax-deferred retirement savings plans? This question is especially important if your employer kicks in money when you contribute.

* Are you also putting money in IRAs, if you qualify? Most people qualify for either a tax-deductible IRA or a Roth IRA even if they are contributing money to their company retirement plan.

* Do you have an emergency fund equal to about three months’ expenses, so if an unexpected roof leak, dental bill, or job loss hits, you’ve got something to fall back on?

* If you have other goals such as saving for college, are you saving money regularly for that?

You don’t have to answer yes to all of these questions, but you do need to think about them before you decide to use your extra money to pay down debt. If your car loan is at 7 percent interest or more, consider paying it off unless you can deduct it for business purposes. I never recommend prepaying a mortgage because that means giving up an interest deduction on your tax form (a nice perk of being a homeowner).


Other financial planners might disagree, saying you could invest that money and get a rate of return that’s higher than the interest rate you’d be saving by paying it off. But here’s my most important advice about not prepaying your mortgage: The more home equity you have and the less cash, the less flexibility you have. It’s great to retire with a debt-free house, but if you don’t have money in the bank, how are you going to pay for food and other living expenses? You can always decide to pay down your mortgage later, when you are sure that you will have enough investments to cover your living expenses when you retire, or if you decide that you are going to sell your house so you can buy something cheaper or rent. If you want to stay in your house when you retire but won’t have that spending cash, there is an alternative: You can take out a reverse mortgage, essentially borrowing on your own home equity and paying interest for the privilege. The more liquid assets you have, the more flexibility you have to meet life’s surprises. These questions are not just about money—they’re about how you want to live your life.


Q: When should I consider refinancing my house loan?

A: The rule of thumb used to be that you should consider refinancing your home loan when the current interest rate is 2 percent less than your existing rate. But with so many different kinds of mortgages and different arrangements for closing costs and those other up-front fees, no one rule of thumb applies in all cases.


Your best bet is to ask your local bank or mortgage lender to prepare a refinancing analysis for you that shows you how long you would have to live in your house to make the refinancing worthwhile. If you are planning to move within the next couple of years, it probably doesn’t make sense to refinance, even if the interest rates drop.


The kicker in refinancing is the amount of closing costs and other costs—appraisal, credit reports, and any “points.” (A point equals 1 percent of the amount of your mortgage and is considered prepaid interest. The more points you pay up front, the lower the interest rate on the loan.) Ask your bank or broker how long it would take before you would break even if you paid no cash up front and financed all of these costs. Then ask how long it would take if you paid 1 percent up front, or any other financing arrangement that’s attractive to you. The only way you can really make a decision is to crunch the numbers, and these numbers are so complicated that your bank or broker should crunch them for you. It’s a good idea to start with your existing mortgage lender because they may offer you lower closing costs just for using them again. Another lender may offer a lower interest rate, however. Also, make sure to look at your credit report before they quote interest rates because your credit history can make a major difference.


Q: I have some stock options with my employer, who also matches my 401(k) contribution with company stock. I don’t have any other investments, and I’m 25 years old. Should I sell some of my shares now even if I’m pretty sure they will continue to go up?

A: Yes! It’s exciting when your company is doing well and the stock price is going up, but it’s another story when the stock price goes the other way. You are vulnerable because you have all your investment eggs in one basket. Even though you are young, that’s too much risk to take. No one stock should make up more than 5 percent of your total investments. If your company will match your 401(k) contribution only with its own stock, you don’t have much choice. However, do not buy company stock with the money you are putting in your retirement plan. Pick a mutual fund that invests in a large number of U.S. stocks, such as a Standard and Poor’s 500 Index fund. This gives you lots of diversification so if one company tanks, your balance sheet doesn’t tank with it. As far as your stock options are concerned, ask your employee benefits person to give you an analysis showing you the tax consequences of exercising and selling your stock.


Q: When should I write a will, and how can I get started?

A: If you are an adult, you need a will. You may not think so if you don’t own any property, but a will does a lot more than just decide who gets the couch and the silverware. In a will you appoint an executor who is responsible for settling your estate, which means filing all the forms—tax and legal—required. If you have children, your will names the guardians of your choice. If you don’t have a will upon your death, you actually still have an estate plan. The problem is, that estate plan has been designed by your state legislature, and the government will be the executor of your estate. So if you die without a will, your wishes are not legally known, and even relatives you really don’t like could end up benefiting from your death.


I would suggest starting with the will-writing computer software that is now available, with specific instructions about how to prepare, sign, and have your legal documents witnessed so that they will meet your state laws. I always recommend having a lawyer look over these program-generated documents, however.

There are other things to consider, too. You don’t only need a will, you also need a durable power of attorney that appoints someone else to make legal decisions for you if you aren’t able to yourself. You also need a “living will” that tells your doctors and your family how much medical treatment you want, as well as a health-care proxy that gives the person you name the right to make medical decisions on your behalf. All of this is complicated, and every state law is different. So start with will-writing software, but get an expert to review it before you make it legal.

Life Insurance

Life Insurance, assumption by an insuring organization of the risk of death of a policyholder. Unlike loss in insurance on property, loss in life insurance is certain to occur and is total. The element of uncertainty is when death will occur. Mortality is subject to the laws of probability, however, and life-insurance premiums can be calculated from mortality tables, which indicate the average number of people in each age and gender group that will die each year. A person trained to make such calculations, known as an actuary, determines the amount of premiums to be collected yearly from each group in order for the principal (the premiums) and its earned interest to equal the benefits to be paid to the policyholders' beneficiaries. The principal payment required annually constitutes the net premium. A loading charge to cover company expenses and contingencies is added to the net premium, yielding the total, or gross premium, which the insured pays.

History of Life Insurance

The earliest known type of life insurance was the burial benefits that Greek and Roman religious societies provided for their members. Neither these religious societies nor any premodern systems for paying death benefits employed actuarial calculations. They were frequently financed on a postassessment basis; that is, contributions were made by all surviving members following one member's death. As a result, funds were not always available to pay claims.

The tontine annuity system, founded in Paris by the 17th-century Italian-born banker Lorenzo Tonti, although essentially a form of gambling, has been regarded as an early attempt to use the law of averages and the principle of life expectancies in establishing annuities. Under the tontine system, associations of individuals were formed without any reference to age, and a fund was created by equal contributions from each member. The sum was invested, and at the end of each year the interest was divided among the survivors. The last remaining survivor received both the year's interest and the entire amount of the principal.

The first life-insurance company in North America was founded in 1759 in Philadelphia. It was named the Corporation for the Relief of Poor and Distressed Presbyterian Ministers and of the Poor and Distressed Widows and Children of Presbyterian Ministers.

TYPES OF LIFE INSURANCE

Life insurance may be classified in a variety of ways. A classification depending primarily on the manner in which the premium is collected comprises regular ordinary, debit, and group life insurance. Regular ordinary insurance can be further classified into whole life, limited-payment life, endowment, and term. Debit life insurance can be classified into debit ordinary and industrial. Life insurance may also be classified as participating and nonparticipating, depending on whether or not the policyholder shares in the savings or the profits of the insurer.

Regular Ordinary Life Insurance

Whole-Life Insurance
Whole-life insurance provides for the payment of the face amount of the policy on the death of the insured, whenever it might occur. Premium payments are made during the entire lifetime of the insured person; this differs from limited-payment and endowment policies. All cash-value policies like whole life, endowment, and limited-payment life are required to provide values that cannot be lost should the insured terminate the policy. Such benefits provide that the insured may obtain the cash surrender value and terminate the policy; or the insured may obtain a paid-up whole-life policy in a reduced amount; or he or she may obtain term insurance for the full face amount of the policy for a specified period. A loan provision in all such policies permits the insured to borrow up to the full amount of the cash surrender value at any time, subject to specified limitations.

Limited-Payment Life Insurance
The limited-payment life policy provides for premium payments for a specified number of years (for example, 10 or 20, or until age 65) unless the insured person dies sooner. A single-premium life policy is a special case of a limited-payment policy. Premium rates for limited-payment policies are higher than for ordinary life insurance policies because the pay-in period is shorter.

Endowment Insurance
Endowment policies are payable at the death of the insured or on a specified maturity date if the insured is alive. Premiums generally are payable from the date of issue until the date of maturity but may be limited to fewer years or even to a single lump-sum payment. Premium payments on endowments are high because a large cash value is built up in a relatively short time. Endowments combine savings with insurance, and such policies may be used to provide for college education, mortgage payments, or retirement purposes. This type of policy lost popularity when competing savings mediums began paying higher interest rates in the 1970s and early '80s. More competitive interest rates have not yet restored its standing.

Term Life Insurance
Term insurance provides benefits only if the insured dies within a specified period. If the insured survives up to the end of the specified period, the contract is terminated unless renewed. Because the premium for a term policy pays only for the cost of the insurance protection during the term of the policy, term insurance generally has no cash surrender value. The insured may be allowed to renew for another term without a medical examination. The premium, however, increases with each renewal because it is calculated on the age of the insured at the time of renewal. Term insurance is often used by the head of a family to obtain additional temporary insurance when the children are young. Term insurance policies frequently provide the insured with conversion options to whole-life policies.
Credit life insurance is term insurance against a loan taken out on some major purchase such as an automobile. It generally decreases in amount as the loan is repaid. It protects the borrower's family as well as the lender against the debt that remains unpaid at death