Chris and Lisa are thinking about starting a family. In preparation for this new phase of their life, they visited a local hospital to learn about the costs of delivery and care. They learned that the average cost for a normal birth is $8,600. This took Chris's breath away, until he remembered his employer-provided insurance coverage, under which he and Lisa are covered. The plan features are as follows.

$500 per person deductible.

10% coinsurance.

$3,000 out-of-pocket yearly maximum.

Based on the hospital's estimate and their insurance policy, how much will Chris and Lisa pay if Lisa gives birth in early January (the beginning of a new insurance year)? How much will the insurance company pay?

Chris and Lisa will pay ($......?)

Insurance company will pay ($......?)

-------------------------------------------------------------------------------

Since you last checked in with Chris, he received a promotion and raise at work. His new annual income is $54,500. Given his new promotion and the fact that he and Lisa are thinking of starting a family, he is considering buying a disability policy. Because his employer does not provide this as an employee benefit, he needs to buy a policy in the open market.

How much replacement income should he shop for.

He should look for a policy that will replace ($.....?) of his income.

----

How much might this type of policy cost per year?

He can expect to pay between ($......?) and ($.....?) per year.

----------------------------------------------------------------------------------------------------

As a hopeful new mother, Lisa is anxious to make sure that, as a family, their financial house is in order. She is thinking about buying a life insurance policy. Right now, she has $50,500 in coverage from her employer. Based on the estimation procedure, how much additional coverage should she shop for if her current salary is $34,100 per year?

Lisa should shop for ($.........?)

------------------------------------------------------------------------------------

Chris has been collecting sports memorabilia for many years. Right now, his collection is worth only $750.

Does he need a personal property rider (floater) at this time?

Yes/No

-------

Let's say that he continues to collect and the value of the memorabilia increases to $3000. Will he need a personal property rider at that time?

Yes/NO

-------------

If yes, approximately how much will the rider cost?

Riders' cost ($.........?)