Auto Insurance Does Not Mean The Same Things To People In The Financial Profession

It is amazing how much literature has been written about the car insurance business online. The main approach in use by the bulk of the writings is in the direction of selling car insurance, rather than offer it in the proper context of insurance product or ‘a product to protect your assets and wealth.’ That is why when searching for the phrase ‘auto insurance’ a large number of websites emerge with the ‘selling’ phrases like affordable auto insurance, or cheap auto insurance or low cost auto insurance.In the early part of 2011 and according to Google AdWords there were 8,100; 74,000; 9,900 monthly searches for the above key phrases, respectively. On the other hand, there were only 110 searches for the phrase ‘reliable auto insurance’, 170 searches for ‘quality auto insurance’, and 8,100 for ‘top auto insurance companies.’ It is rather easy to conclude that most of the searches on line are about price, not quality of insurance.A basic principle in marketing is to understand what people ‘want’ and design and package your product or service to meet what the folks want. Looking at those numbers we can tell that most people want cheap auto insurance. As a marketer, if you design any campaign without considering that analysis you may eventually flunk the marketing tests, close your website and go do something else.So what’s the difference between auto insurance polices? From a ‘financial planning viewpoint’ car insurance comparison should never be based on price only, and perhaps most people agree that cheap insurance is not necessarily the best car insurance. But what most people do not know is that an insurance policy with the best rated company may also be one of the most problematic contract. An auto insurance policy should be compared in reference with three factors:1. Price: of course the cheaper the better.2. Company Rating: Non standard companies are more flexible than their standard or preferred counterparts with regard to past violations found on the MVR activities of the drivers and the credit score of the car insurance applicants. However, non standard companies are harsher than others in customer service and paying claims. Most of complains come from non standard insurance companies. While preferred companies do not hesitate to quickly pay for smaller claims suck as seven or eight thousand dollars claim, or even little more; all companies from top to bottom will try to examine the application to see if they have to or do not have to pay a $100,000 claim.3. Liability Limits. This is the most ignored, least understood, but is the most important aspect of the policy which affect customers during time they need the insurance. It measures how much protection you have in the event you get sued. A professional financial advisor will never ever sell you an auto insurance policy at low limits if he/she has enough information that you and your spouse have enough wealth to be sued for in the event that you or a family household member cause a major auto accident and your car insurance pays the maximum on the policy which turns out not to be enough.There are many insurance policies sold with superior insurance companies at the lowest liability limits mandated by the state. In the State of Illinois these limits are 20/40/15, which means that in the event you cause an accident that is your fault and you get sued by others, then your company will pay to others on your behalf no more than $20,000 for bodily injury for one person, no more than $40,000 for bodily injury for all other people in the accident, and a maximum of $15,000 for any and all property damage you case in that accident. If you are a business owner and you cause a major accident resulting in a unbeaten lawsuit of $300,000 and your insurance company maxed the payment on the policy and paid $20,000, the difference of $280,000 will have to come from your own money!Financial Planners and Auto Insurance Marketers Are Not in HarmonyFinancial planners are not in harmony with insurance marketers about the weight that needs to be placed on limits of liability in auto insurance. Marketers like to stress the aspects of price and company rating, while financial planners like to stress the importance of liability limits first, then company rating second, and perhaps price at a later stage.Although financial planners and auto insurance marketers have the common goals of maximizing their earnings while providing their services, the scope of their operations is different. Auto insurance marketers make their money by selling as many polices as they can have. The marketer does his best to make as many sales as possible, hence making small amount of money on too many policies sold. Financial planners work differently as they try to make big money from each of the few number of customers they have. Selling an auto policy is not the primary concern of a financial planner, but for him or her auto insurance is one of the fundamental subjects of the financial planning process.Car insurance agents look at auto insurance as a way to protect the car itself in the event of theft, fire or another loss, besides the fact that it’s the law. Financial planners look at auto insurance as an integral part of their clients risk management process. To the financial planner an auto policy is not to repair the car in the event of loss, but is mainly about protecting the assets and wealth of the insured, especially against potential lawsuits.Some auto insurance marketers would even suggest to cut down on liability insurance as a way to save money. No sound financial planner will ever make such a suggestion. No way!When does height matter?How high your liability limits should be is the main issue that should prevail when you buy car insurance. You probably need only the minimum liability limits mandated by the states if /when(1) you shopped for higher limits and could not afford it, (2) your current assets or wealth is not big enough to expose you to further lawsuits in the event of at fault auto accident. (3) you are a high risk driver where no one else wants to insure you except at the minimum limits. But, if you have certain amounts of assets and wealth, or is expected to have sizable assets or wealth, then you need to worry about the height of your liability limits.What about if you are not wealthy with plenty of assets? Even for people with little or no wealth, the height of liability limits should be much of a concern to them. This is due to the fact that liability insurance contains certain coverages to pay for your bodily injuries in the event that you get hit by a vehicle that is legally uninsured, or is insured but the insurance on that vehicle was not enough to cover your bodily injuries. According to the Insurance Research Council, approximately 15% to 17% all drivers in the United States are uninsured. Coverages for Uninsured Motorist (UM) and Underinsured Motorist (UIM) vary from states to states with regard to their mandatory status and limit amounts. In Illinois UM is mandatory at the limits of $20,000 for bodily injury per person and $40,000 for bodily injury per accident. Underinsured motorists coverage is not mandatory in Illinois but insurance companies must offer it to clients for policies issued with liability over the state limits. Clients can still reject to have higher uninsured/ underinsured motorists but it must be in writing. As you can see, your liability only policy provides coverage for your bodily injuries, and making sure that you have high limits on both liability, UM and UIM can have tremendous effect on your life.

Don’t Let Them Tell You Different: Your Inner Beauty Is Undefinable

Defining beauty isn’t easy. In fact, for every culture, it means something slightly different. A tribe in Africa treats female beauty to mean a curvy, voluptuous woman, while society in America wants their women to be thin as nails. As different as priorities and perspectives of outer beauty in each culture may be, one thing is the same – inner beauty stems from confidence, inner peace and a positive mindset.Inner beauty isn’t about the face you want to have or attaining the body you’ve always dreamed of having; it’s about being happy with what you already have. Don’t you love your petite nose, slanted eyes, or dimples? If not, you should because true outer beauty begins and ends with true inner beauty. Love yourself – and all of your many unique qualities – and as a result look beautiful to the rest of the world, too.Inner Beauty Stems From ConfidenceWhen you feel good inside, you look good on the outside. Has a co-worker on Monday morning every remarked on your “glow” after having a relaxing weekend away from work and your many work-related responsibilities? It wasn’t their imagination. Your “glow” arose from rosy skin, and a relaxed vibe from the stress-free couple of days away from the office. And when that happens, you radiate a new, happier self. Like magic, you’ve gotten more attractive to each and every person you meet, and all thanks to an inner beauty, due to acceptance and confidence that translates to your outer self.Inner Beauty Stems From Inner PeaceDespite what you may think, you’re not your most beautiful when you’ve just had your hair professional done, or when you’ve just treated yourself to buying a designer dress to wear out for the night. You don’t look your best when you spend hours putting on make-up or only after working off that recent weight you gained last month.Instead, you look your best when you’re at peace with who you are, and where you are in life. Western culture has told us many things about beauty, all of which suggests that in order to be our most beautiful self we must weight this amount (no more, no less!), buy this cream, inject this anti-aging laser treatment, or show up wearing these designer brand of shoes. However, we don’t need to fulfill society’s silly standards of beauty. Instead, we can create our own.Inner beauty isn’t so easy to attain, because one of the key aspects of achieving it is first achieving inner peace. Are you feeling at ease about yourself, or uncomfortable in your skin? True inner peace (not some flittering thought, but a constant state of calm and peace about yourself) can come in many forms such as accepting your “flaws” as part of what makes you, you. It can come in the form of liking who you see in the mirror (no matter how much you want to change). It can be knowing yourself inside and out; believing in yourself and your dreams, and never letting anyone else tell you who and what you’re capable of. Are you feeling at peace about who you are, and what you’re here to do? That inner peace will undoubtedly shine through in your skin, your smile, and even the way you walk.In addition, your inner beauty will send a vibe to all those you meet that you’re positive, happy and peaceful about yourself and the world. And who wouldn’t be attracted to that?Inner Beauty is Attainable With the Right MindsetAnything you want in life can be achieved with the right mindset, and when you have the right mindset, you’ll always exude beauty. If you’ve ever felt empowered after writing a short story, gave a speech to others who felt moved by what you had to say, or felt as though you are unstoppable after running a marathon, that’s the power of your mind at work.Inner beauty comes from many sources, but one of the quickest ways to feel good about yourself and everything you stand for is through a positive, clear way of thinking. Love who you are, and your beauty will always follow.

Consequences of Defaulting on Hard Money Loans

Hard money loans are a common way to fund a real estate project. In many cases, these loans can be used to buy properties that banks won’t finance because of their riskier nature. However, if you default on one of these loans there will be consequences. This article discusses the repercussions of not paying back a hard money loan and how they differ from other types of financing options.

You May Lose Your Property

If you can’t make your payments on a hard money loan, the lender has the right to take possession of the property that serves as collateral for the loan. This means you could lose your home or business if you can’t come up with the cash to pay back your debt.

You’ll Likely Face Legal Action

Hard money lenders are typically more aggressive than traditional banks when it comes to collecting on loans. If you default on your loan, the lender is likely to pursue legal action in order to recoup their losses. This could lead to wage garnishment, asset seizure, and even bankruptcy.

Your Credit Will Suffer

A hard money loan is a high-interest, short-term loan. This means that if you can’t make your payments, you’ll end up with a high-interest debt that will damage your credit score. This could impact your ability to get future loans and may even prevent you from renting an apartment or buying a car.

You’ll Waste a Key Investment Opportunity

Hard money loan financing is expensive. If you can’t pay back your debt, it will represent a significant waste of potential income that could have been used to grow your business or fund future investments.

You May Lose Your Equity

When you take out a hard money loan, you’re typically required to put up some form of collateral. If you can’t make your payments, the lender has the right to sell that collateral in order to recoup their losses. This could mean losing all or part of the equity you’ve built up in your property.

You’ll End Up in a Stressful Situation

If you default on your hard money loan, things are likely to get very stressful. You may face legal action that will require hiring an attorney and could lead to bankruptcy or foreclosure proceedings against your property.

This is why it’s so important for borrowers to make their payments on time; if they can’t do this, there’ll be significant consequences down the road.

You May Need Hard Money Loans Again in the Future

The repercussions of not making timely repayments with a hard money lender may prevent you from getting loans in the future. This means that even if you manage to save up enough capital for another project, borrowing funds might become extremely difficult without good credit history and high-income levels.

You Can Ruin Your Business Relationship With the Lender

If you have a good relationship with your hard money lender, it may be possible to work out a repayment plan that allows you to avoid some or all of the consequences listed above. However, if you don’t repay your debt as agreed upon, you could ruin this relationship and make it difficult to borrow money from them in the future.

As you can see, there are several consequences for defaulting on loan, paying on time will help you avoid all of these unfortunate outcomes and save your business.