Motorcycle Accidents - How to Make Sure You Are Protected
Most motorcycle accidents are caused by the inattention of other drivers. An accident most often starts when another vehicle moves into the rider's lane.It is often claimed by the driver of a car or truck involved in a motorcycle crash that the motorcycle was in his blind spot, so he could not see it. Of course, this really is no defense because drivers have a duty to be aware of their surroundings at all times. When other drivers are unaware, serious motorcycle wrecks can occur, resulting in serious injury. Because riders are often thrown from their motorcycles, injuries often include broken arms and legs. Accidents involving tractor trailers can be much, much worse. Brain and head injuries often result from these wrecks.
An experienced accident attorney will want to make a serious examination of the rider's helmet. It is very possibly for a rider's helmet to contribute to his injuries. A faulty helmet may result in a products liability claim against its manufacturer. Obviously, the point is moot if the rider of the motorcycle was not wearing a helmet, so motorcycle safety rule number one is: Always wear your helmet.
It takes a lot more than a helmet to give a rider all the protection he needs. From a medical standpoint, typical full coverage insurance is insufficient to make sure you can cover your medical expenses. All full coverage really provides is liability and property damage coverage. The problem arises when the driver of the vehicle that strikes the motorcycle rider does not have sufficient insurance coverage to pay for the rider's hospital bills.
Nobody wants to think about being in a motorcycle accident, but you need to fully protect yourself. This is done by obtaining three kinds of insurance: UM, or uninsured; UIM, or under insured; and medical payments insurance coverage. Having all three of these types of insurance provides you with maximum protection in case you are injured. These types of insurance are often not even mentioned by insurance agents, so you will have to ask. But don't worry about the expense, because this type of insurance tends to be very affordable.
Monday, July 20, 2009
Thursday, July 16, 2009
Types of Life Insurance to Avoid
The main reason behind buying a life insurance policy is to protect your family or dependents from financial hardships in case something happened to you unexpectedly. But, there are a lot of life insurance policies that are being sold today that duplicate the protection you would get from a normal term life insurance policy, so don't be so quick to sign on the dotted line.
Here are some types of insurance you should avoid:
Credit Life Insurance - A credit life insurance policy, or "credit life," as it is also referred to, is used to pay off a debt for a car, electronics, appliances or any similar consumer items if you die or are disabled and cannot make the repayments. It is in effect a type of decreasing term life insurance that will help pay your credit card bill if something were to happen to you. But unlike a term life policy, it is insurance on a debtor, in favor of a lender.
You may be offered a credit life policy when you are financing a large item and the premiums are usually added into the loan contract. This type of policy is ALWAYS optional and is generally quite expensive. Credit life isn't normally sold by itself. Salespeople typically sneak it in when you finance a purchase because it generates hefty commissions for them. You should also know that it is illegal for a lender to force you to buy such a policy when making any big
ticket purchases. Credit life coverage is also severely limited as it never covers pre-existing medical conditions. If you turn 70 during the policy period, it also often becomes null and void. Finally, your family isn't treated as the beneficiary, rather the lender is.
The basic premise of credit life is faulty as what most people don't realize is that when you die, your dependents are not obligated to pay off your debts unless their names are on the accounts in question along with yours. If you feel that you are being forced to buy credit life insurance against your wishes, scan all agreements carefully in search of signs of credit life and ask that it be removed. If you find out that you are already paying for credit life, you can cancel it at any time and receive a pro-rated refund. You should also check with your state insurance commissioner if a salesperson is allowed to insist you buy credit life to get a loan and complain to the authorities if it is not allowed.
Therefore, if you already own a sufficient amount of life insurance to cover your financial needs, including repayment of your debts, the purchase of credit life insurance should be avoided.
Here are some types of insurance you should avoid:
Credit Life Insurance - A credit life insurance policy, or "credit life," as it is also referred to, is used to pay off a debt for a car, electronics, appliances or any similar consumer items if you die or are disabled and cannot make the repayments. It is in effect a type of decreasing term life insurance that will help pay your credit card bill if something were to happen to you. But unlike a term life policy, it is insurance on a debtor, in favor of a lender.
You may be offered a credit life policy when you are financing a large item and the premiums are usually added into the loan contract. This type of policy is ALWAYS optional and is generally quite expensive. Credit life isn't normally sold by itself. Salespeople typically sneak it in when you finance a purchase because it generates hefty commissions for them. You should also know that it is illegal for a lender to force you to buy such a policy when making any big
ticket purchases. Credit life coverage is also severely limited as it never covers pre-existing medical conditions. If you turn 70 during the policy period, it also often becomes null and void. Finally, your family isn't treated as the beneficiary, rather the lender is.
The basic premise of credit life is faulty as what most people don't realize is that when you die, your dependents are not obligated to pay off your debts unless their names are on the accounts in question along with yours. If you feel that you are being forced to buy credit life insurance against your wishes, scan all agreements carefully in search of signs of credit life and ask that it be removed. If you find out that you are already paying for credit life, you can cancel it at any time and receive a pro-rated refund. You should also check with your state insurance commissioner if a salesperson is allowed to insist you buy credit life to get a loan and complain to the authorities if it is not allowed.
Therefore, if you already own a sufficient amount of life insurance to cover your financial needs, including repayment of your debts, the purchase of credit life insurance should be avoided.
Mortgage Life Insurance
The odds are that you have already been offered a mortgage life insurance if you own a house. Your lender may in fact have recommended such a policy as the premium payments are normally added to your mortgage payments.
Mortgage life insurance also works in the same manner as a decreasing term life insurance policy that will pay off your house if you die. As the amount left to pay on your home decreases and the years pass, your death benefit in turn, decreases.
These policies usually have a high cost, which only adds to your premium payment and interest on your mortgage. In addition to this, your lender is the beneficiary in this type of policy and your family will receive none of these death benefits. The bottom line is that any good life insurance policy can serve as mortgage life insurance. It might seem like a good idea to protect your home and take out a mortgage life policy but an affordable term life insurance policy will accomplish the same thing and term life insurance policies are generally less expensive than those offered by mortgage companies.
Air Travel Life Insurance - Air travel life insurance covers a broad range of situations such as lost or delayed luggage, flight cancellation, or even trip delay which can in turn cause other cancellations of hotel rooms or car rentals. Such insurance will cover you if you have a medical emergency before or during your flight as well as during your travel to and from the airport in case an accident occurs at the time. Air travel insurance does not cover accidents that happen while on vacation but only during the flight itself.
Air travel life insurance is basically like a short term accidental death life insurance policy. If the plane was to crash and you were killed or injured, your family and dependents would receive compensation through this type of insurance policy.
This type of policy however will terminate as soon as the policy holder leaves the airplane. This kind of insurance is only available for commercial flights and is not available for private carriers and has to be purchased prior to departure. At the end of the day, though, if someone depends on you financially, then you need life insurance to cover you no matter how you die.
An affordable term life insurance will protect the policy holder if he/she dies in an airplane crash or naturally and more than compensates for the loss of life without any extra expense.
Mortgage life insurance also works in the same manner as a decreasing term life insurance policy that will pay off your house if you die. As the amount left to pay on your home decreases and the years pass, your death benefit in turn, decreases.
These policies usually have a high cost, which only adds to your premium payment and interest on your mortgage. In addition to this, your lender is the beneficiary in this type of policy and your family will receive none of these death benefits. The bottom line is that any good life insurance policy can serve as mortgage life insurance. It might seem like a good idea to protect your home and take out a mortgage life policy but an affordable term life insurance policy will accomplish the same thing and term life insurance policies are generally less expensive than those offered by mortgage companies.
Air Travel Life Insurance - Air travel life insurance covers a broad range of situations such as lost or delayed luggage, flight cancellation, or even trip delay which can in turn cause other cancellations of hotel rooms or car rentals. Such insurance will cover you if you have a medical emergency before or during your flight as well as during your travel to and from the airport in case an accident occurs at the time. Air travel insurance does not cover accidents that happen while on vacation but only during the flight itself.
Air travel life insurance is basically like a short term accidental death life insurance policy. If the plane was to crash and you were killed or injured, your family and dependents would receive compensation through this type of insurance policy.
This type of policy however will terminate as soon as the policy holder leaves the airplane. This kind of insurance is only available for commercial flights and is not available for private carriers and has to be purchased prior to departure. At the end of the day, though, if someone depends on you financially, then you need life insurance to cover you no matter how you die.
An affordable term life insurance will protect the policy holder if he/she dies in an airplane crash or naturally and more than compensates for the loss of life without any extra expense.
Wednesday, July 15, 2009
Understanding Permanent Life Insurance
Permanent Life insurance is in essence a broad term for life insurance policies that do not expire. And unlike term life insurance, permanent life plans also combine the death benefits with a savings portion. This savings portion involves the building up of a cash value that the policy owner can borrow funds against, or even in some cases, can be withdrawn if funds are suddenly needed. Permanent life insurance is coverage for your entire life. There is no need to renew this type of policy and as long as you pay your premiums and keep the policy in force, your policy stays in effect for your whole life. The amount for which you are insured will then be paid to your beneficiaries at the time of your death - even if you live past 100.
Permanent insurance operates differently from term life insurance. The premiums are always larger - often five to 10 times the size. The reason that premiums on a permanent policy are more than the actual cost of the policy is that a portion of that premium goes into a savings component known as the policy's "cash value." This is why permanent insurance is also referred to as "cash value" insurance. At the beginning, the cash value is very low because much of the early premiums go towards sales charges and agent's commissions. But as time passes, the cash value accumulates and the insurer can pay the policyholder depending on the dividends or interest agreed upon. Permanent life insurance is therefore more like an investment than an insurance policy.
Until your policy is redeemed, this savings will continue to increase and earn money. At the point of redemption, depending on the type of policy you have taken, the cash value is either surrendered to the insurance company or included your death benefits. But the savings portion of your permanent life insurance policy is more than just a way to increase your death benefits. The main advantage is that you have access to this money at any time during your life allowing you to cover any expenses that you otherwise might not have been able to afford.
You can use the cash value component of your policy by requesting a low interest rate loan from your insurance company and use the cash-value account as a guarantee or by surrendering the cash value portion (completely or partially). Surrendering your policy in essence means that you are terminating it. A Full Surrender implies that the death benefits and any cash value accrued will be paid to you and the contract between you and the insurance company is over. A Partial Surrender means that only a portion of the death benefit and cash value will be paid to you. The remainder will be adjusted against your existing policy. Keep in mind that not all insurance companies allow you to partially surrender your policy, and if they do, it may be only under extreme circumstances.
Another perk of permanent life insurance policies is that they enjoy favorable tax treatment. You pay no taxes on any earnings in the policy as long as the policy remains active. Money can also be withdrawn from the policy without being subject to taxes as such loans are not considered taxable income.
How the cash value portion of your policy is handles is in fact the basis for the major differences in between the types of permanent life insurance available. Each type offers varying levels of freedom and flexibility in reference to premium payments and control of your investments. These include:
Whole life insurance
Whole life insurance is a type of permanent life insurance that remains in effect throughout one's life. Generally, the premiums for this type of policy remain level throughout the life of the insured. This type of insurance plan also develops cash values that can be accessed by the policy holder through surrenders or policy loans. Cash values in whole life insurance policies typically include two components. There is a guaranteed cash value, which grows on a pre-determined schedule and which equals the death benefit upon maturity of the policy. There is also a non-guaranteed cash value element that is made up of dividends, which add to the value of the life insurance policy over time.
Universal life insurance
With universal life insurance, all three elements of the policy are differentiated. There is the protection element or the death benefits, the expense element, and the cash value component. Separating these elements offers the policy greater flexibility and allows the holder (within certain guidelines) the ability to modify the face amount or the premium in response to changing needs and circumstances.
Variable Life Insurance
A variable life policy offer the most flexibility and control. The policyholder can decide how the cash-value portion is invested. But be warned, this type of policy should only be taken by people who have the experience and understanding of the markets and the ability to closely monitor and manage their policy portfolios. The rewards may be greater but the risks are high as well. Variable life insurance is also one of the more expensive plans available today.
Permanent insurance operates differently from term life insurance. The premiums are always larger - often five to 10 times the size. The reason that premiums on a permanent policy are more than the actual cost of the policy is that a portion of that premium goes into a savings component known as the policy's "cash value." This is why permanent insurance is also referred to as "cash value" insurance. At the beginning, the cash value is very low because much of the early premiums go towards sales charges and agent's commissions. But as time passes, the cash value accumulates and the insurer can pay the policyholder depending on the dividends or interest agreed upon. Permanent life insurance is therefore more like an investment than an insurance policy.
Until your policy is redeemed, this savings will continue to increase and earn money. At the point of redemption, depending on the type of policy you have taken, the cash value is either surrendered to the insurance company or included your death benefits. But the savings portion of your permanent life insurance policy is more than just a way to increase your death benefits. The main advantage is that you have access to this money at any time during your life allowing you to cover any expenses that you otherwise might not have been able to afford.
You can use the cash value component of your policy by requesting a low interest rate loan from your insurance company and use the cash-value account as a guarantee or by surrendering the cash value portion (completely or partially). Surrendering your policy in essence means that you are terminating it. A Full Surrender implies that the death benefits and any cash value accrued will be paid to you and the contract between you and the insurance company is over. A Partial Surrender means that only a portion of the death benefit and cash value will be paid to you. The remainder will be adjusted against your existing policy. Keep in mind that not all insurance companies allow you to partially surrender your policy, and if they do, it may be only under extreme circumstances.
Another perk of permanent life insurance policies is that they enjoy favorable tax treatment. You pay no taxes on any earnings in the policy as long as the policy remains active. Money can also be withdrawn from the policy without being subject to taxes as such loans are not considered taxable income.
How the cash value portion of your policy is handles is in fact the basis for the major differences in between the types of permanent life insurance available. Each type offers varying levels of freedom and flexibility in reference to premium payments and control of your investments. These include:
Whole life insurance
Whole life insurance is a type of permanent life insurance that remains in effect throughout one's life. Generally, the premiums for this type of policy remain level throughout the life of the insured. This type of insurance plan also develops cash values that can be accessed by the policy holder through surrenders or policy loans. Cash values in whole life insurance policies typically include two components. There is a guaranteed cash value, which grows on a pre-determined schedule and which equals the death benefit upon maturity of the policy. There is also a non-guaranteed cash value element that is made up of dividends, which add to the value of the life insurance policy over time.
Universal life insurance
With universal life insurance, all three elements of the policy are differentiated. There is the protection element or the death benefits, the expense element, and the cash value component. Separating these elements offers the policy greater flexibility and allows the holder (within certain guidelines) the ability to modify the face amount or the premium in response to changing needs and circumstances.
Variable Life Insurance
A variable life policy offer the most flexibility and control. The policyholder can decide how the cash-value portion is invested. But be warned, this type of policy should only be taken by people who have the experience and understanding of the markets and the ability to closely monitor and manage their policy portfolios. The rewards may be greater but the risks are high as well. Variable life insurance is also one of the more expensive plans available today.
Life Insurance - A Buyers Guid
What is Life Insurance?
Everybody knows that life is a precious commodity, one that we should not take for granted. However, many of us do not think about life insurance until it is too late. It is hard enough coming to terms with the loss of a loved one without worrying about how the funeral bills are going to get paid. Therefore, it is vital to get the support you and your family need in the event of you or your partners' death.
Why do I need Life Insurance?
There are many reasons why you need to buy life insurance, these include: Mortgage repayments, replacing the primary earner's salary, replacing childcare, education expenses, just to name a few.
What types of Life Insurance are there?
It is very evident from the list above that there are many reasons why you should look around for the best deal on you life insurance. But what type of life cover is there currently around for you to buy which relates best to your specific circumstance.
Life insurance generally comes in the form of 'investment-type' and 'term' insurance, however not all companies offer both. This all depends on the type of company/organisation providing the cover.
An 'Investment-type' life cover is a policy that you usually pay into on a monthly basis. These policies can either pays out fully when you die or a cash amount on an exact date. The sum paid out ultimately depends on the performance of the investments in the insurance fund.
On the other hand, a 'Term' policy guarantees to pay out within a stated period of time (also known as the 'term'). Once the term of the policy runs out a new policy needs to be bought. A term can be for example the duration remaining on your mortgage.
If you want more information on how much life insurance is likely to cost you then it is recommended that you get a quick life insurance cover quote
Everybody knows that life is a precious commodity, one that we should not take for granted. However, many of us do not think about life insurance until it is too late. It is hard enough coming to terms with the loss of a loved one without worrying about how the funeral bills are going to get paid. Therefore, it is vital to get the support you and your family need in the event of you or your partners' death.
Why do I need Life Insurance?
There are many reasons why you need to buy life insurance, these include: Mortgage repayments, replacing the primary earner's salary, replacing childcare, education expenses, just to name a few.
What types of Life Insurance are there?
It is very evident from the list above that there are many reasons why you should look around for the best deal on you life insurance. But what type of life cover is there currently around for you to buy which relates best to your specific circumstance.
Life insurance generally comes in the form of 'investment-type' and 'term' insurance, however not all companies offer both. This all depends on the type of company/organisation providing the cover.
An 'Investment-type' life cover is a policy that you usually pay into on a monthly basis. These policies can either pays out fully when you die or a cash amount on an exact date. The sum paid out ultimately depends on the performance of the investments in the insurance fund.
On the other hand, a 'Term' policy guarantees to pay out within a stated period of time (also known as the 'term'). Once the term of the policy runs out a new policy needs to be bought. A term can be for example the duration remaining on your mortgage.
If you want more information on how much life insurance is likely to cost you then it is recommended that you get a quick life insurance cover quote
Taking on Investment Risk
When it comes to financial planning and understanding investment risk, many people adhere to the age-old adage, "Nothing ventured, nothing gained." After all, it stands to reason: if a small investment has the potential to make a small turnaround, a large investment has the potential to make a large turnaround. And large turnarounds are where fortunes are made, so bigger equals better. Right?
Yes, absolutely. And no, not necessarily.
Taking on large amounts of investment risk is a slippery slope, and the choice to attempt the journey is one of the most important financial decisions you will ever make. Where to place your financial investment and how much you're willing to stake on the odds and the current market should be the result of a close evaluation between you and your financial planner - not a whim or a desire to double your money overnight.
Some of the things to consider when evaluating the level of investment risk you're willing to take on include:
Your End Goal
For example, many people play it safest when it comes to retirement funds. Few people are willing to play with the money they expect to get them through their golden years, and even fewer welcome the idea of working well into their 70s or 80s. However, retirement funds are actually one of the places where a little risk can go a long way.
Because you're looking at decades in which to get your money safely tucked away, you not only have a little more "wiggle room" in terms of the ups and downs of the market, but you also have to consider the role that inflation plays in your investment. A steady 3 percent annual return might sound good at first, but because inflation usually decreases the value of the dollar at the same rate, you might end up with a nest egg that has done little growth on its own.
Your Level of Comfort
Financial investments should be a comfort to you, not a burden. Someone who is familiar with economics and the fluctuations of the market might be more comfortable undertaking risky ventures than someone who is new to the field. That's because in the financial world, things can change overnight, and what seems like a good idea now might be a bad idea later (and vice versa). If you are the type of person who needs more control over your investment, or if you envision long, sleepless nights when things take a turn for the worse, your sanity and your health might be bettered if you stick to more modest ventures.
Your Income and Lifestyle
Of course, one of the most important things to consider when making a financial investment is how much money you have to begin with. While thousands of dollars in savings or a healthy portfolio are certainly great places to be financially, they aren't a requirement in order to get started with a solid financial plan. Those just starting to explore their financial options, or those who have financial obligations to family, are often better off playing it safe until they become more familiar with making investments and have a larger amount of money to put in riskier ventures.
No matter what you decide to do with your investment, remember that your financial planner is one of the best places to turn for advice. When you work with a firm or individual you trust, you're much more likely to get the kinds of straight, honest answers that will result in the best possible outcome for your financial future.
Yes, absolutely. And no, not necessarily.
Taking on large amounts of investment risk is a slippery slope, and the choice to attempt the journey is one of the most important financial decisions you will ever make. Where to place your financial investment and how much you're willing to stake on the odds and the current market should be the result of a close evaluation between you and your financial planner - not a whim or a desire to double your money overnight.
Some of the things to consider when evaluating the level of investment risk you're willing to take on include:
Your End Goal
For example, many people play it safest when it comes to retirement funds. Few people are willing to play with the money they expect to get them through their golden years, and even fewer welcome the idea of working well into their 70s or 80s. However, retirement funds are actually one of the places where a little risk can go a long way.
Because you're looking at decades in which to get your money safely tucked away, you not only have a little more "wiggle room" in terms of the ups and downs of the market, but you also have to consider the role that inflation plays in your investment. A steady 3 percent annual return might sound good at first, but because inflation usually decreases the value of the dollar at the same rate, you might end up with a nest egg that has done little growth on its own.
Your Level of Comfort
Financial investments should be a comfort to you, not a burden. Someone who is familiar with economics and the fluctuations of the market might be more comfortable undertaking risky ventures than someone who is new to the field. That's because in the financial world, things can change overnight, and what seems like a good idea now might be a bad idea later (and vice versa). If you are the type of person who needs more control over your investment, or if you envision long, sleepless nights when things take a turn for the worse, your sanity and your health might be bettered if you stick to more modest ventures.
Your Income and Lifestyle
Of course, one of the most important things to consider when making a financial investment is how much money you have to begin with. While thousands of dollars in savings or a healthy portfolio are certainly great places to be financially, they aren't a requirement in order to get started with a solid financial plan. Those just starting to explore their financial options, or those who have financial obligations to family, are often better off playing it safe until they become more familiar with making investments and have a larger amount of money to put in riskier ventures.
No matter what you decide to do with your investment, remember that your financial planner is one of the best places to turn for advice. When you work with a firm or individual you trust, you're much more likely to get the kinds of straight, honest answers that will result in the best possible outcome for your financial future.
Benefits of Mutual Funds
Of the many different ways in which you can invest your money, mutual funds are one of the more popular choices among both individuals and financial planning firms. Unlike stocks and bonds, they offer a greater variability in terms of the amount of money you can invest and the ways in which you can withdraw and reinvest your funds. This makes them a good fit for many individuals just beginning to explore their investment options, as well as those who want to have more control over their portfolio.
What are Mutual Funds?
Mutual funds are basically an investment co-op. Several people put their money into a single investment portfolio underneath the direction of a fund manager or other investment professional. The return is set an annual fixed fee, so that most of the risk and potential for substantial returns falls on the fund manager or firm. To the consumer, this is much less like an investment in the stock market and more like a bank account with a standard interest rate, even though their money is technically invested in a number of different ventures.
Why Mutual Funds are Popular
Many people prefer mutual funds because their money is under the direction of a financial manager or investment professional who has just as much of a vested interest in the outcome as they do. This offers a great alternative to a broker, who typically takes home a commission rather than a percentage of the money you make. In fact, most brokers have no accountability for an investment gone bad.
In mutual funds, however, your financial manager makes money only if the portfolio does well. And while you typically get a fixed return rate - and therefore never see the benefits of an incredible return - you can feel safe knowing that your money is working hard with little risk.
Mutual funds also come with a greater range of options than what an individual gets with stocks or bonds. For example, because several people are investing simultaneously, many mutual funds are open for investment at as little as $50. When set against the thousands of dollars typically necessary to get started in the stock market, this means that more people can access a smart financial plan.
You can also usually withdraw your funds faster and more conveniently. Although there may be fees associated with an early withdrawal of your investment, they are usually smaller than what you can expect from a different type of investment, and you'll see the cash in hand in as little as three business days.
Are Mutual Funds Right for You?
Still, despite these advantages, mutual funds aren't right for everyone. They are lower risk than what many investors are looking for, and many people actually need the rigor of an investment they aren't allowed to touch for several years in order to be successful at investing.
Before you make the decision to purchase mutual funds, it's best to discuss your options with your financial advisor or investment firm.
In mutual funds, however, your financial manager makes money only if the portfolio does well. And while you typically get a fixed return rate - and therefore never see the benefits of an incredible return - you can feel safe knowing that your money is working hard with little risk.
Mutual funds also come with a greater range of options than what an individual gets with stocks or bonds. For example, because several people are investing simultaneously, many mutual funds are open for investment at as little as $50. When set against the thousands of dollars typically necessary to get started in the stock market, this means that more people can access a smart financial plan.
You can also usually withdraw your funds faster and more conveniently. Although there may be fees associated with an early withdrawal of your investment, they are usually smaller than what you can expect from a different type of investment, and you'll see the cash in hand in as little as three business days.
Are Mutual Funds Right for You?
Still, despite these advantages, mutual funds aren't right for everyone. They are lower risk than what many investors are looking for, and many people actually need the rigor of an investment they aren't allowed to touch for several years in order to be successful at investing.
Before you make the decision to purchase mutual funds, it's best to discuss your options with your financial advisor or investment firm.
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