1)

Who would receive the proceeds of each insurance policy on which Julian is insured person?

2)If Julian dies is there a problem with his insurance that was most likely unintentional? What is your suggestion to them?

3) A) If Margaret were to die how much would Julian receive? B) Would Julian be able to live the same way he did when they were both living? C) How much should they each have in life insurance under the Human Life Value if they each wanted to replace 90% of their salary for 40 years expecting 3% raises?

4) Looking at the disability coverage for Julian and Margaret. A) If Julian cannot work in his specific occupation would his policy cover him? B) How much would Julian receive if he were out of work for 1 year? C) Would they be able to pay their bills if either of them were out of work for an extended period? (Explain both Julian and Margaret). What would be your first suggestion regarding disability insurance?

5)Julian is considering a procedure on his shoulder that he has been putting off. He has had no health insurance expenses yet this year. He has seen two surgeons for the operation, Dr. A. is in the PPO network and Dr. B is out of network. Dr. A would charge $10,000 and Dr. B would charge $8,000. For Dr. A and Dr. B show how much Julian would have to pay out of pocket for each.

PROBLEM 1 (15 pts) Julian, age 27, has two children, ages 4 and 3, from his first marriage to Joan. He is now married to Margaret. The children live with their mother. Julian and Margaret each make $50,000 per year and have recently purchased a house for $200,000, with a $175,000 mortgage. They have the following life, health, and disability coverage: Health insurance: Julian and Margaret are covered under Julian's employer plan, which is a PPO with a $500 in-network deduc tible per person per year and a $1,500 out-of-network deductible per person per year, an in-network 80/20 coinsurance clause with a family annual out-of-pocket maximum of $2,500, and an out-of-network 60/40 coinsurance clause with a familyout-of-pocket maximum of $4,500. Long-term disability insurance: Julian is covered byan own occupation policy, that he purchased from his agent and he pays the premiums with after-tax money. The benefit equals 65% of his gross payafter a 180 -day elimination period. The policy covers both sickness and accidents. The benefit period is five years ( 60 months). Margaret is not covered by disability insurance. PROBLEM 1 (15 pts) Julian, age 27, has two children, ages 4 and 3, from his first marriage to Joan. He is now married to Margaret. The children live with their mother. Julian and Margaret each make $50,000 per year and have recently purchased a house for $200,000, with a $175,000 mortgage. They have the following life, health, and disability coverage: Health insurance: Julian and Margaret are covered under Julian's employer plan, which is a PPO with a $500 in-network deduc tible per person per year and a $1,500 out-of-network deductible per person per year, an in-network 80/20 coinsurance clause with a family annual out-of-pocket maximum of $2,500, and an out-of-network 60/40 coinsurance clause with a familyout-of-pocket maximum of $4,500. Long-term disability insurance: Julian is covered byan own occupation policy, that he purchased from his agent and he pays the premiums with after-tax money. The benefit equals 65% of his gross payafter a 180 -day elimination period. The policy covers both sickness and accidents. The benefit period is five years ( 60 months). Margaret is not covered by disability insurance