|
New Page 1
|
 |
Knowing When And How To Cut Your Losses Plus: Understanding Betterment – Your Insurance Company's Favorite Game
|
Air date: March 25, 2004
He's always stirring things up every week in his Dallas Morning News column and he's here this morning to talk about some fallout from a controversial column that appeared last week. Our un-common sense expert Benjamin Dover is here to talk about quitting and knowing when to cut your losses...
Question 1: Your column last week apparently really touched some nerves, didn't it?
"Quitting does not equal failure, however, not quitting when it is indicated will lead to failure."
Why do you think this evoked such a response?
Answer 1: Many of us (me included) have been conditioned over the years–by our parents, a teacher or a coach, or maybe even some huckster shilling mail order home-based business success/positive thinking courses via middle-of-the-night infomercials–to believe that quitting is wrong...that it equals failure. "A quitter never wins and a winner never quits" is not only outmoded, it’s unrealistic thinking.
Question 2: But you also took a hot-button position that really got folks stirred up:
"Self-interest tends to be in the best interest of all."
Let's face it Ben, it's easy to see why that last statement would rub some people the wrong way.
Answer 2: As unpopular as this may initially appear, the self-interest–"him or me" decision–in the long run, tends to be in the best interest of all. Honest evaluation of your situation–from lousy jobs and creepy bosses to dysfunctional relationships or out-of-control finances–you’ve got to learn when to cut your losses.
You’ve got to come to grips with what’s best for you and your family, and many times it takes a breakdown before you have a breakthrough.
I'm not even remotely suggesting you don't care about "your fellow man," but I can tell you that putting the "needs" of Providian Visa ahead of your family is absurd.
I can tell you that paying a debt collector for XYZ Hospital before you pay the rent or mortgage, an electric bill or insurance is pretty stupid. Of course if you've never been in this position, how would you (or could you) ever understand?
Put yourself in the best position to survive so that you can help your family. Here's a perfect example:
Have you ever flown in a commercial airliner? Have you ever read over the "what you need to do if the cabin de-pressure-izes and the oxygen masks drop down" literature? I have.
What's one of the first things they tell you? "If you have a child flying with you, put your mask on first, then place the mask over the child's face." Why do they tell you to do this? Simple.
Because if you're not fully-functional first and foremost, how are the kids gonna survive? If you put their interest first and before your own, you're setting everyone up for disaster.
You've gotta be on your game. You've gotta be sharp and ready to play ball, and if you continue to operate under the old programming, the stress, the anger and the frustration are clearly more dangerous to the long-term survival of you/your family than the fallout from not paying unsecured creditors.
Subrogating your needs and putting yourself in anything less than the #1 position actually does far more damage, in the short or long run.
By the way: It's not my job to teach your kids how to survive in the real world. It's yours.
And remember:Sometimes you have to lose so you can win.
Question 3: Speaking of losing so you can win, your column in this morning's Dallas Morning News focuses on an insurance concept known as betterment. It's something many of us had had to deal with when we've had damage to our vehicles and tried to get the insurance company to fix it and make it right.
Answer 3: Yes...Betterment is a popular negotiating tool claims adjusters use when they "post-accident negotiate" the amount they’re willing to pay to settle a claim. Consumers frequently (and incorrectly) believe that buying an insurance policy buys them a guarantee that after an accident, their property will be replaced or repaired for little (or zero) out-of-pocket cost.
Here’s an example: You go out to dinner and valet park your car. After dinner the car’s returned with a brand new 6-inch scratch across your door; the valet company (remember–this is just an example) takes responsibility...and you think you’re going to get your entire car painted out of the deal. Yes, they’ll fix the scratch, but you’re not going to get the entire car painted just because of a 6-inch scratch...you can bet they’ll slap you down using the "betterment" angle.
Question 4: It was interesting how you even got on this topic in the first place; you got a letter from a parent about their 11 year old son accidentally damaging a friend's cell phone...
Answer 4: Apparently he teasingly threw his friend’s backpack to another pals to catch..a little game of keep-away it sounds like to me. Anyway, it fell into a shallow creek and Junior said he retrieved it right away, but the owner of the backpack claims his cell phone was in it and got wet.
Mom & Dad now claim the phone's dead and needs to be replaced, and they wanted my spin on whether or not they should be responsible to pay for a new phone? They were kinda twisted about it since they were never shown the allegedly dead phone...and they want Junior to be responsible and said he was going to pay the damage from his $5-per-week allowance. This set the stage for my "betterment theory" discussion.
Junior's parents need to use the same betterment angle if they’re going to be replacing the cell phone.
Since they’re claiming your son was the cause of a (now) dead cell phone, they need to give you the chance to inspect the damage, as well as the right to replace the phone with one of similar quality/age. If they’re using a four year old phone, they’d better be prepared to get one like it as a replacement. If they want a newer phone, then the two of you need to work out a price for the water-logged phone, and let them apply this amount to their new phone.
Of course if they lost a brand-new/state of the art model with all of the techno bells-and-whistles, you’ve gotta ask them:
#1 Why would you put such an expensive piece of equipment into the hands of a kid? and,
#2: How do I know this phone was in the backpack that Junior was involved with? Any way you slice-and-dice this deal, your son’s about to forfeit several weeks–if not months–of his allowance.
How'd you like to pay only 3.39% for a mortgage? ARMs hit another record low, and 15-and-30 year rates aren't far behind: Alan Greenspan to continues to make a lot of people in the housing industry pretty happy these days. Here's why.
W.R. Starkey Mortgage has the Dover Seal of Approval because they're the best, no-B.S. mortgage company in the nation...period.They consistently deliver on their company credo:"A different kind or mortgage company where people come first."
Get smart(er) about the process from start to finish: Click here to get your free copy of Ben's 2004 Home Buyer's Guide.
Experience what stress-free financing is all about and take advantage of incredibly low interest rates:
Do it all on-line W.R. Starkey Mortgage,or find a location near you:(888) 282-6632
And if you know a senior homeowner who's cash poor but is sitting on a wad of equity:
Here's how to flush out some cash so they can enjoy the riches of their years of hard work. It's non-taxable cash, and allow 'em to travel, pay for medications or hire health care professionals that, in turn, allows them to stay in their homes longer.Turn up the speakers and learn more from Ben's streaming video archive.....
Love that nice big ride of yours? How are you gonna feel when gas prices hit $3 a gallon? Even the automotive industry admits they're amazed by continued strength in the SUV sales category.
Spring is officially in the air...now's the perfect time to cash in on [still] low interest rates...lower financing rates will give you more bang for your four-wheeled buck. Click here to get a free copy of Ben's (recent) Smart Car Seminar guide to avoiding car-buying brain damage.
The key to avoiding auto buying heartache is to deal with an honest company in the first place: No matter where you're located,
Manufacturer's Auto Leasingdelivers on that promise, and more. They've got the Dover Endorsement because they really are auto experts you can trust. Check 'em out for yourself.....
Just a reminder Easter Sunday (April 11th) is now just 19 days away: Do something original this year that'll score some big points...send beautiful flowers instead of predictably boring Easter lilies. They'll last at least twice as long...FedEx-ed direct by our friends atwww.tropicalcolors.com
Check out Ben's moving tips section here... and remember the key to lowering your chances for financial and emotional heartbreak starts by making the right moving company choice. Exodus Moving is a great example of dependability and just as important, affordability.
Unpacking after a big move doesn't have to be total brain-damage, either: Ben's choice for unpacking and organizing expertise that won't bust your bank account? Tiffany Pine-Lastelick and her team of organizational experts at InOrder.....
Live in North Texas? I've already found the first/last/only reliable (and bonded) locksmith you'll ever use! Chief Lock & Safe (214) 827-7535 (answered 24/7/365)
On the run from the law? Hiding out from the cops? Here's where you don't wanna go...(you'll never see this fact highlighted in any of the travel brochures, either!)
Speaking of running from the law, April 15th is now only 23 days away. Millions of Americans have IRS-related troubles hanging over their heads...are you one of them? Personal or business challenges aren't as hard to work out as you might think, especially if you hire the right representation to cut a deal with the world's most powerful debt collection agency. Take a deep breath and read more about it here.....
What an idiot, Part I: Jessica Simpson may be hotter than hell, but here's confirmation that she's also dumber than a box-o-rocks: According to Dallas Morning News columnist Alan Peppard, the former Dallas-area resident recently took a tour of the White House and was introduced to Gale Norton, the Secretary of the Interior. SaidSimpson:"You've done a nice job of decorating the White House." Yet one more example of why hot chicks can have the mental capacity of a turnip...
What an idiot, Part II: Before you call your mistress, you might wanna double-check the number you think you're dialing! Maybe you don't have a mistress, but a parole officer instead. This pinheaddeserves to be behind bars.....
What an idiot, Part III: That's what I felt like after waiting forever to make the jump from cable to satellite.
Easter and Mother's Day is coming up fast...looking for a reliable source for all types of jewelry or watches? Learn how to avoid getting hosed...check out Ben's diamond/jewelry buying tips...all assembled in one easy-to-reference section.....
Know how to find a new landlord that'll not only give you free rent, but will even move you for free? Simple! And onlyone click away.....
How loaded are you? Americans have taken on record-levels of debt. Put down the credit card, step away from the ATM and read why.
In over your head in debt? Don't let the bottom-feeding tele-terrorists scare you (or someone you know/love) into making even worse financial decisions!
Here's where you can get your hands on Ben's popular pull-no-punches books and fire the debt collectors! Or maybe you need to take legal actions and clear the slate in '04? Read more here.....
Give a gift that'll keep on giving all year long, is guaranteed to make the recipient smarter, and (here's the best part), it's free! Sign 'em up for the weekly Dose of Dover e-mailed newsletter right here!
|
|
|
|
|
