Life vs. Health Insurance: Choosing What to Buy
There’s a distinct solace in realizing that regardless of whether your health takes a sudden turn, you and your family have a financial safety net. At the point when money’s tight, however, paying for both a life coverage policy and health mind scope every month can get dubious. As costs begin, it can be enticing to drop either to make a decent living.
Actually many individuals really require the two sorts of security, particularly in the event that they have wards. In the event that that is the situation, the better thought is to confine scope to what you really require so you can manage the cost of the two sorts of insurance.
Remember that insurance needs can change significantly amid various life stages. What may appear to be fundamental for a parent with high schooler youngsters probably won’t be so critical for ongoing college alumni or a retiree.
The “Young Invincibles”
Before the 2014 rollout of the Affordable Care Act (marked into law in 2010), numerous 20-and 30-somethings forgoed health insurance through and through. What’s more, not without reason: These “youthful invincibles” as a few specialists call them, have a much lower rate of health issues than most sections of the populace. Paying a premium consistently just appeared to be pointless to a few.
In any case, with the ACA forcing an order on most American to have health scope, that began to change. In 2018, the punishment for being uninsured is $695 per grown-up, or 2.5% of profit, whichever is higher. (See Obamacare Penalty Enforcement: How It Works.) That has added up to a truly solid motivating force to join.
The Tax Cuts and Jobs Act wiped out the command (or, all the more entirely, the resistance punishment), beginning in 2019. In any case, once you consider the benefits of health mind scope, you may well need to have it.
One bit of uplifting news for late graduates is that the ACA permits you to remain on your parent’s arrangement until the age of 26 or even 29, contingent upon the arrangement. That may get you sometime before taking out your very own policy.
Considering a knock up in your scope by acquiring a “bronze,” “silver,” “gold” or “platinum” anticipate your state’s health mind trade? It’s conceivable that you could get some assistance from the legislature. Shoppers who win up to 400% of the government destitution level – in 2015, that is $46,680 for people and $95,400 for a group of four – fit the bill for a duty credit. What’s more, the individuals who acquire under 250% of the destitution level are qualified for appropriations, which can enable a balance to out of-take medicinal costs.In the event that depending on your mother as well as father’s policy isn’t a choice and you’re younger than 30, a moderately modest disastrous policy may be justified regardless of a look. You won’t be repaid for most specialist visits and other everyday health needs, however after you achieve a specific deductible, you’ll have a safety net on the off chance that you wind up encountering a noteworthy therapeutic issue. For individuals with an about immaculate health record, this negligible measure of insurance is regularly enough.
On the off chance that you happen to live in an express that extended Medicaid because of the ACA, you may even have the capacity to get scope through that program. On the off chance that you simply graduated and are working at the nearby café or market to bring home the bacon, it’s conceivable that you could qualify.
While you might not have much decision with regards to acquiring health scope, life coverage is an alternate issue. On the off chance that you don’t have any children yet, you may not require it.
There are a couple of special cases. In case you’re financially supporting your folks or grandparents, you’ll need to take out a policy that is sufficiently huge to deal with their necessities. Or on the other hand, you may need a little policy that will cover your burial service costs if the unexpected ought to happen. For whatever length of time that you stay with a nitty-gritty term policy, this kind of scope more often than not isn’t too costly for somebody in his or her 20s or 30s.
Raising a Family
When kids tag along (or even only a life partner), health insurance goes up against another level of significance. On the off chance that your boss offers a health design, that is run of the mill – however not generally – going to be more affordable than shopping on a trade. At work, the organization is generally financing a major piece of your health premium; in the “individual” insurance showcase, you’re paying the full bill, less any assessment credits or appropriations for which you may qualify.
In any case, you may not require the most costly policy your organization offers. Amid your boss’ open enlistment period, investigate the premium for each arrangement. At that point influence a ballpark to gauge of the amount you’d need to pay out-of-stash for things like crisis administrations, lab work, and physician recommended sedates under every alternative. You may find that the best level arrangement isn’t justified regardless of the additional premium.
A similar guideline applies to families who aren’t secured at work and rather purchase on the individual market. Except if you hope to acquire significant therapeutic costs, a “silver” plan can now and then give you enough scope for not exactly a “gold” or “platinum” one.
Notwithstanding health scope, most people truly do require life coverage once they have a family. Be that as it may, it requires not cost you a package to give your friends and family a financial safety net. To begin with, consider getting a term policy, which just remains in a drive for a particular number of years. These have a tendency to be a considerable measure less expensive than perpetual arrangements like entire life and all-inclusive life.
Another approach to hold the cost down is to purchase just as much disaster protection as you require. There are a few different ways to make sense of this. One is to increase your compensation by a specific sum – 10 times your yearly wage is one general guideline – and utilize that to decide the policy’s face esteem.
An alternate – and maybe more valuable approach – is to count up every one of the costs your life partner would cause if something transpired. Think childcare charges, basic need bills, home loan and auto installments, educational cost et cetera. At that point subtract whatever you have in reserve funds and speculation accounts. Your policy should cover the distinction.
The fact is, any insurance is better than no insurance if you have dependents. So if you’re feeling pinched from a financial standpoint, buy whatever you can afford.
It’s one of those troublesome unavoidable issues facing everyone: The more seasoned you get, the more probable you are to encounter health intricacies. Consequently, middle age presumably isn’t an ideal opportunity to begin holding back on your therapeutic insurance.
In any case, there’s no less than one financial advantage to getting more seasoned. Once your children achieve financial autonomy, you may have the capacity to begin dialing back on live coverage. That doesn’t really mean dropping your scope inside and out. On the off chance that despite everything you have a home loan to pay off – or in case you’re living on an annuity that doesn’t pay a survivor advantage – regardless you’ll need at any rate some assurance.
On the off chance that your current term policy is arriving at an end, one choice is to take out a little policy that gives a safety net amid your vacant home period. Or on the other hand, if your present term scope incorporates a transformation include, you could transform a bit of it into a changeless life policy.
The benefit of convertibility is that you don’t need to experience therapeutic endorsing once more, which ends up trickier as you get more established and definitely have more health issues. Simply know that you just have a specific number of years when you can exploit this component, so it merits looking into your transporter’s terms and conditions.
The Bottom Line
When you only buy the coverage you truly need, paying for health and life insurance simultaneously becomes a lot less daunting. Young and healthy singles may be able to get by without the latter. But For people with dependents, these are two needs you really can’t avoid.
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Will self-driving cars change how car insurance works?
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5 Insurance-Buying Mistakes to Avoid
Purchasing insurance can be confusing, yet when the surprising happens – a house fire, a fender bender or a broken bone – it’s a help to realize that a portion of those budgetary losses will be covered. Be that as it may, how would you know what amount of scope you require? What’s more, what inquiries would it be a good idea for you to ask before purchasing a strategy? Numerous consumers aren’t sure. Insurance scope is a long way from one size fits all, so here’s a glance at botches a few consumers make when purchasing insurance.
1. Assuming insurance is out of reach. The U.S. Registration Bureau reports that 48 million Americans had no medical coverage in 2012. Also, around 30 percent of U.S. family units have no disaster protection, as indicated by LIMRA, an overall research and counseling association for insurance and money related administrations. Now and again, consumers skip insurance since they thoroughly consider it’s of their financial plan. Regularly, that is not the situation, as indicated by Marvin Feldman, president and CEO of the LIFE Foundation, a philanthropic association that instructs consumers about money related arranging and insurance. The LIFE Foundation teamed up with LIMRA on the 2013 Insurance Barometer Study, which found that the normal purchaser thinks extra security is three times more costly than it really is. “[Consumers are] not examining it to figure out what the cost is,” Feldman says.
When purchasing medical coverage or property and loss insurance, get some information about potential rebates. “66% of consumers don’t understand they can get budgetary help on the off chance that they purchase their own particular medical coverage, and they can get monetary help on the off chance that they go and purchase in these health care coverage commercial centers,” says Lynn Quincy, senior arrangement investigator with Consumers Union, a division of Consumer Reports. “You might be way overpaying on the off chance that you don’t research this probability.” While medical coverage rebates are regularly wage based, mortgage holders and auto safety net providers offer rebates for everything from being an individual from bunches like AARP, to being a decent understudy or a decent driver, to having a home security framework.
2. Relying on assumptions or outdated figures. Changing economic conditions mean you may require more insurance scope than you had previously. Take extra security. Previously, consumers may have construct their extra security scope in light of their present wage, however “in the event that something happens and you’re no longer near, you require more capital at work to give a similar salary [to your beneficiaries],” Feldman says. Inability and long-term mind insurance are significantly more entangled than traditional disaster protection. “For incapacity, do you need scope that keeps going forever? Are there medical problems in your family?” Feldman inquires. “That is the place you have to address someone to get some direction.”
On account of property holders insurance, your home could be underinsured on the off chance that you’ve redesigned or if the cost to fabricate a home has expanded because of higher material expenses or different factors. That is the reason specialists prescribe auditing insurance scope once multi year to ensure despite everything it fits your requirements. Converse with your insurance specialist in case you’re uncertain.
3. Shopping on price alone. Contrasting insurance approaches can be confusing, however fight the temptation to just pick the arrangement with the most minimal premium. Consider the organization’s reputation and the scope you’d get for that premium. “When in doubt with medical coverage, the higher the premium, the lower the sum you pay when you go to the doctor,” Quincy says. Private medical coverage designs must give scope cases indicating what your evaluated out-of-stash expenses would be for, say, having an infant or overseeing Type 2 diabetes. A few illustrations won’t not make a difference to you, but rather they can enable you to look at plans and perceive the amount you may pay in coinsurance and copays.
“Ensure you’re shopping one type to it’s logical counterpart and getting cites in light of a similar scope that you have,” says Lori Conarton, a representative for the Insurance Institute of Michigan. Your property and setback insurance may not cover things like nourishment waste in case of a power blackout or stolen electronics worth more than $1,000, so you might need to buy additional endorsements to cover those potential outcomes, she includes.
With inability or long-term mind insurance, prices can shift contingent upon the length of the elimination time frame – the measure of time you should hold up before scope kicks in – and whether the strategy incorporates inflation protection, so consider these factors, as well.
4. Glossing over the details. Ensure you comprehend what your insurance approach covers. For medical coverage, it’s less expensive to see doctors who are in-network and purchase prescription medications covered by the formulary, so Quincy recommends verifying whether your doctor is in-network and if your prescription medications are covered before you purchase a strategy. Otherwise, you could get a costly shock.
Read your insurance approach and contact your insurance operator in the event that anything is vague. “Unfortunately, many individuals don’t discover what coverage they ought to have had until the point when they have a misfortune,” Conarton says. “Here in Michigan, we’ve had a considerable measure of winter weather, and a few people don’t realize that flooding isn’t covered under a general mortgage holders insurance strategy.” However, you can for the most part purchase a different surge insurance arrangement. Numerous individuals additionally accept that deplete and sewer reinforcements are covered by insurance, yet regularly they’re not, Conarton includes.
5. Setting your deductible too low. Setting a low deductible typically means higher premiums, and in the case of property and casualty insurance, a greater likelihood of small claims that could ultimately raise your premiums. Insurance is designed to protect against losses you could not cover yourself, so if you can afford to pay the first $500 or $1,000 in losses yourself, you may not need a lower premium. “Consider your own financial situation,” Conarton says. “How much of the risk are you willing to assume before you make a claim and the insurance company pays on your claim? You really have to think about how much of that loss you could pay yourself.”
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When Health Insurance Prices Rose Last Year, Around a Million Americans Dropped Coverage | Briarwood Insuranceauto insurance / business insruance / business insurance / commercial insurance / home insurance / life insurance
When Health Insurance Prices Rose Last Year, Around a Million Americans Dropped Coverage
Individuals gaining excessively to fit the bill for endowments are winding up valued out, as indicated by another government report. (Briarwood Insurance)
A year ago, as insurance costs ascended by a normal of a little more than 20 percent around the nation, individuals who met all requirements for Obamacare sponsorships clung to their insurance. However, the builds seem to have been excessively to hold up under some clients who earned excessively to fit the bill for monetary help. (Briarwood Insurance)
As indicated by another government report, around a million people seem to have been evacuated out of the market for medical coverage a year ago. (Briarwood Insurance)
The report is the principal extensive look by the Department of Health and Human Services at individuals who purchase their own insurance, however, don’t meet all requirements for government appropriations under Obamacare. People who acquire more than around $48,000 need to pay the maximum for their wellbeing designs; that gathering has confronted the second round of enormous premium increments in 2018 and is taking a gander at a third round of them in a few sections of the nation one year from now. (Briarwood Insurance)
The report does not give enough data to make sure unequivocally the amount of the distinction is a consequence of expanded costs. For confounded reasons, a few people who paid the maximum in 2016 wound up qualified for endowments in 2017, making a straightforward correlation of when numbers a touch of deluding. (Briarwood Insurance)
The Trump organization additionally lessened publicizing for the insurance information exchange period and made it harder for individuals to agree to accept insurance later in the year, two factors that could have likewise discouraged insurance enlistment. It’s likewise conceivable that some who quit purchasing their own particular insurance did as such in light of the fact that they landed another position with human services benefits. (Briarwood Insurance)
However, it’s sensible to imagine that the majority of the steady loss can be credited to the spike in costs, as the Trump organization finishes up. (Briarwood Insurance)
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Insurance is dubious. Dislike purchasing a seat or a shirt or basic needs. When you purchase insurance, you’re purchasing a guarantee. It’s a guarantee that if something cataclysmic happens to your business, your transporter will help you to make your business entire once more. Some of the time, however, it’s enticing to scrutinize the estimation of insurance since it is an impalpable item.
Let’s back up and take a big-picture view of why insurance matters. Here are seven reasons why insurance is important. What more would you add?
1.) Insurance Keeps Commerce Moving
In the days after the 9/11 attacks, there were numerous stresses over insurance coverage. Demonstrations of war are not secured by insurance. Was terrorism a demonstration of war? The central issue was, How might the 9/11 attacks be grouped? Luckily, the insurance business chose the attacks were not a demonstration of war.
Be that as it may, after 9/11, a few backup plans started barring terrorism. In any case, the government ventured in and required coverage for the sake of keeping business moving. For this situation, insurance likely kept numerous organizations from maintaining a strategic distance from psychological militant focused on activities, for example, refineries and compound haulers.
2.) Lenders Require Insurance
This reason is tied to No. 1. Lenders require that you have insurance. Think about it: Mortgage lenders need verification of insurance before you purchase or construct another building. To put it plainly, to get the cash your business needs to continue onward, it’s conceivable you appreciate the advantages of insurance. Without insurance, your triumphant plan of action can’t get the financing it needs to venture out, your built up plan of action can’t get the subsidizing to advance and better content.
3.) Insurance is Compulsory in Some States
Insurance is important because sometimes it’s the law! A great example of this is auto insurance. Auto insurance is compulsory in Wisconsin (home of HNI HQ). Auto insurance helps mitigate the risk of life on the road (of which there are many!). Workers’ compensation is a form of compulsory insurance that’s required in most states.
4.) Insurance Grants Peace of Mind
Insurance, an intangible, provides another intangible: peace of mind. Business owners can take on certain business ventures because they can shift the risk — thanks to insurance. This reason is the counterpart to No. 2 — lenders require insurance. Insurance is the required (by lenders) safety net that lets entrepreneurs explore opportunity.
5.) Insurance Ensures Family and Business Stability
Insurance is a safety net for when risks go wrong. Life insurance can support the life of a family, should a member be lost. It’s similar for a business. Should a key member or piece of equipment go out of commission, the business can carry on, thanks to insurance. This reason why insurance is important dovetails nicely with peace of mind (No. 4). It all goes back to the idea that insurance, when activated, makes policyholders whole again.
6.) Insurance Protects the Small Guys
When you look at your industry, you see the “big guys” and the “small guys.” If a risk goes wrong, the big guys will be able to survive. They can endure a shot. In any case, the little folks can’t endure a shot. Accordingly, they are more hazard disinclined, and now and again, they offer out to the enormous folks. In the event that enough little folks leave the business (and one major person gobbles them up), you’re left with a restraining infrastructure. With insurance, in any case, the little folks have to bolster on the off chance that they need to go for broke, which implies they stick around longer. What it comes down to is that insurance helps prevent monopolies from forming.
7.) Insurance is the Right Thing to Do
A sobering example of insurance in action is the West Fertilizer Co. explosion in Texas this spring. The explosion did $100 million in damage to the community, including schools and hospitals. The fertilizer company had only $1 million in general liability coverage.
Presently the city is suing West Fertilizer and likely will win the majority of the organization’s outstanding property and resources that were not harmed by the calamity. This is on account of the fertilizer organization did not have enough insurance. What’s more is the city likewise is suing the providers to the fertilizer plant, asserting they knew they were providing naturally perilous materials. On account of the West, Texas, plant blast, insurance could have helped a network to recoup after an emergency.
Insurance is something many business owners don’t want to think about. But whether they think about insurance, with the hope it’s there, allowing for a transfer of risk and providing a safety net for new opportunities.
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Avoid these common mistakes and you’re on your way to getting the best insurance for your needs and budget
Saving money feels good. Furthermore, shopping around while searching for insurance coverage is an extraordinary method to do it. Be that as it may, just diminishing your coverage or dropping vital coverage through and through is like dieting without working out— concentrated just on numbers, not on outcomes. Don’t risk ending up dangerously under-insured and on the hook for much bigger bills in the event of a disaster. (Five Insurance Mistakes to Avoid)
Following are the five most common auto, home, flood and renters insurance mistakes people make, along with suggestions to avert those pitfalls while still saving money (we call them, “better ways to save”): (Five Insurance Mistakes to Avoid)
1. Insuring a home for its real estate value rather than for the cost of rebuilding.
When real estate prices decrease, some homeowners may think they can reduce the amount of insurance on their home. But insurance is designed to cover the cost of rebuilding, not the sales price of the home. You should make sure that you have enough coverage to completely rebuild your home and replace your belongings—no matter how the real estate market is doing.
A better way to save: Raise your deductible. An increase from $500 to $1,000 could save up to 25 percent on your premium payments. (Five Insurance Mistakes to Avoid)
2. Selecting an insurance company by price alone. (Five Insurance Mistakes to Avoid)
It is imperative to choose a company with competitive prices. But be sure the insurer you choose is financially sound and provides good customer service.
A better way to save: Check the financial status of a company with independent rating agencies (some well-known ones: A.M. Best, Moody’s), and ask friends and family members about their experiences with insurers. Select an insurance company that will respond to your needs and will handle claims fairly and efficiently. (Five Insurance Mistakes to Avoid)
3. Dropping flood insurance.
Damage from flooding is not covered under standard homeowners and renters insurance policies. Coverage is available from the National Flood Insurance Program (NFIP), as well as from some private insurance companies. You may not be aware you’re at risk for flooding, but keep in mind that 25 percent of all flood losses occur in low risk areas. Furthermore, yearly weather patterns—spring runoff from melting winter snows, for example—can cause flooding.
A better way to save: Before purchasing a home, check with the NFIP to determine whether a property is situated in a flood zone; if so, you may want to consider a less risky area. In the event that you are as of now living in an assigned surge zone, take a gander at relief endeavors that can diminish your danger of surge harm and consider acquiring surge insurance. (Five Insurance Mistakes to Avoid)
4. Only purchasing the legally required amount of liability for your car.
The minimum is just that—the least you can get away with by law. So buying only the minimum amount of liability means you are likely to pay more out-of-pocket later. And if you are sued, those costs can jeopardize your financial well-being. (Five Insurance Mistakes to Avoid)
A better way to save: Consider dropping collision and/or comprehensive coverage on older cars worth less than $1,000. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident. (Five Insurance Mistakes to Avoid)
5. Neglecting to buy renters insurance.
A renters insurance policy covers your possessions and additional living expenses if you have to move out due to an insured disaster, such as a fire or hurricane. Equally important, it provides liability protection in the event someone is injured in your home and decides to sue. (Five Insurance Mistakes to Avoid)
A better way to save: Look into multi-policy discounts. Buying several policies with the same insurer, such as renters, auto, and life will generally provide savings. (Five Insurance Mistakes to Avoid)
(Five Insurance Mistakes to Avoid)
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Patricia Deter moved from Oregon to Hawaii to be closer to her two daughters, but the Kilauea volcano burned down her home only a month after she bought it. Now Deter and her family, along others who have recently lost homes to the lava-spewing mountain, are on an urgent quest for answers about insurance, desperate to learn whether their coverage will offer any help after molten rock wiped out most of what they owned. (Commercial Business Insurance Queens NY)
The eruption has destroyed about two dozen homes in the Leilani Estates subdivision on the Big Island. On Monday, another fissure spewing lava and toxic gas opened up, and a crack in the earth that emerged a day earlier was sending molten rock crawling toward the ocean, officials said. Nearly 20 fissures have opened since the Kilauea volcano started erupting 12 days ago, and officials warn it may soon blow its top with a massive steam eruption that would shoot boulders and ash miles into the sky.
Because the community sits in a zone deemed by the U.S. Geological Survey to have a high risk of lava, few insurance companies will issues policies there.
Lava Oozes Down Hawaii Streets as Volcano Eruption Continues[NATL] Lava Oozes Down Hawaii Streets as Volcano Eruption Continues
Residents of Hawaii’s Big Island were forced to evacuate their homes as lava continued to rampage through some streets.(Published Monday, May 7, 2018)
But homeowners are not without options. One possibility is the Hawaii Property Insurance Association, a nonprofit collection of insurance companies created by state lawmakers in 1991 to provide basic property insurance for people who are unable to buy coverage in the private market.
The horror of seeing houses turned to ash has motivated some people who went without insurance to scramble to purchase a policy. The association announced last week that it would issue policies to uninsured homeowners in the affected area — but they will have to wait six months.
Some homeowners believe fire coverage will suffice for homes burned by fire from the lava. And a list of frequently asked questions from the Hawaii Insurance Division supports that idea, saying that lava damage may be covered “as a fire peril.”However, there are exceptions. Judy Moa, an insurance broker who specializes in catastrophic coverage for Hawaii, said if a policy specifically excludes lava damage, then a policy’s fire coverage would not apply.
“The cause of damage is lava at the end of the day,” she said. “If lava came down the hill, and they have lava exclusion and trees catch fire, which burn the house, that’s not covered.” (Commercial Business Insurance Queens NY)
Some homeowners forgo policies that include lava coverage because they can cost more than $3,000 per year, said Moa, who has fielded many calls from anxious homeowners.
Dramatic Images Show Hawaii’s Kilauea Volcano Erupt[NATL] Dramatic Images Show Hawaii’s Kilauea Volcano EruptU.S. Geological Survey via AP
The same insurance questions haunt people whose homes are standing but could still be torched by future lava flows.
Todd Corrigan and his wife left their Leilani Estates home on May 4 after a magnitude-6.9 earthquake knocked belongings off their shelves. That jolt convinced them it was time to evacuate.
Corrigan said the most stressful part of the experience might be the uncertainty about what insurance will cover. His policy will pay for damage from a fire but not from lava. His insurer also cautioned him that it will not cover damage if he has not been at home for 30 days. That requirement could be a problem if he is gone for a long time.
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“You have to worry about that stress when you’re trying to deal with everything else,” Corrigan said.
Coverage details vary depending on policies and companies, said Insurance Division Commissioner Gordon Ito, who encouraged homeowners to contact their agents and find out what is covered. (Commercial Business Insurance Queens NY)
State Farm stopped writing policies for homes in the two highest-risk lava zones in the 1990s, but the company grandfathered-in any existing policies, said Kim Silva, a State Farm sales executive in Hawaii.The company’s policies do cover fire from volcanic activity, she said, “but every claim has to be handled on its own merit. Every claim has to be looked at individually and separately.”
Deter’s daughters live in the same area as their 88-year-old mother. They know the eruption risks, so they made sure their mother’s home was covered by a policy that included lava. The family’s Hawaii-based insurance agent assured daughter Vickie Pruitt that her mother’s house was fully covered for lava. But a phone call from an adjuster on the U.S. mainland told them it looked like the damage was from an earthquake — not the lava — and that the home would not be covered.
(Commercial Business Insurance Queens NY)
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