2. Although Mr. Jones’s salary was not big enough to buy insurance for all possible risks, what protection do you think he should have had at this time?Kathy Jones was a junior at Glenbard High School. She had two younger brothers. Her father, the assistant manager of a local supermarket, had take-home pay of $4,000 a month. He had a group health insurance policy and a $40,000 life insurance policy. He said that he could not afford to buy additional insurance. All of his monthly salary was used to meet current expenses, including car and house payments, food, clothing, transportation, children’s allowances, recreation and entertainment, and vacation trips.

One evening, Kathy was talking with her father about insurance, which she was studying in an economics course. She asked what kind of insurance program her father had for their family. The question started Mr. Jones thinking about how well he was planning for his wife and children. Since the family had always been in good health, Mr. Jones felt that additional health and life insurance was not essential. Maybe after he received a raise in his salary and after his daughter was out of high school, he could afford to buy more insurance.