Exam 9: Life and Health Insurance

Compared to those of normal weight,the 34 percent of Americans who are considered obese incur $1,429 per year in additional medical costs,and the average hospital bill for a heart attack is $54,400.

Veronica was recently diagnosed with a heart condition.Her doctor's bill was $4,200 for the diagnostics.Her policy has a $250 deductible and a 80/20 coinsurance provision up to $10,000 and then the insurance pays 100% thereafter.In total,how much will Veronica pay for her diagnosis?

The alternative ways that a beneficiary can choose to receive the policy benefits upon the death of the insured are called

With a PPO,it is much more expensive to go to out of network healthcare providers.

Why are health care costs so expensive at this time?

The earnings multiple approach is based on the notion that you want to replace a stream of annual income that's lost due to the death of a breadwinner.

Javier Jimenez was pleasantly surprised to find out that within three to five years after expiration of a previous life insurance policy,he can

Which of the following is not a cash-value life insurance plan?

Currently only 10% of Americans receive some type of government health care entitlements such as Medicaid or Medicare.

Health insurance that provides payments to the insured in the event that the insured's income is interrupted by illness,sickness,or accident is called ________ insurance.

You know you desperately need life insurance but don't have much money available for premiums.What is the best thing you can do to find affordable insurance?

Your entire family was injured in an automobile accident,some more seriously than others.If any member of your family became disabled to a greater extent,where might you look for disability benefits?

A disadvantage of term insurance is that the cost rises each time the policy is renewed.

Alice and Tommy have 3 dependent children.Alice earns $125,000 per year.They are taking out insurance on Alice for the next 30 years.Tommy expects to get a 9.25% rate of return on the life insurance payoff.Using the earnings multiple approach calculate how much life insurance they need to take out on Alice.

Suppose that you earn $50,000 annually.You expect expenses to drop by 22% for your family in the event of your death.Currently,if you die,you want to provide for your family for at least 15 more years,and the applicable after-tax and inflation return assumed is 5%.Using the earnings multiple approach provided in your textbook,what would be the amount of life insurance that you should purchase?

The policy owner must pay the premium during the grace period or they forfeit the policy.

What is the main purpose of life insurance?

You should only consider a long-term care policy that includes coverage for Alzheimer's and Parkinson's disease.It should also include which of the following provisions?

According to the Keown book,two recommended online insurance quote services are accuquote.com and insure.com.

The advantage of whole life insurance is that it is generally cheaper than term life insurance per dollar of coverage.