Dammersive Reader Accesoty Mode Understand the role of insurance in protecting human, financial, and property assets. Understand the importance of basic estate planning documents Max and Sarah Smith are a married couple. They are both 30 years old, and they have a 3-year-old girl. Maxis a loan officer and carns $55.000 a year. Sarah works as a retail store manager and makes $50,000 a year. Max's life expectancy is 80 years, and Sarah's is 82. They plan on retiring when they are 65. There are three health insurance policies that they could choose from (see pages 3-5). 1. Health Insurance: Help Max and Sarah to determine which of the three plans to choose. They want to know which plan would be best if they estimate their medical costs at approximately $2.500 per year and which plan to use to evaluate their medical costs closer to $25,000 per year. Help the Smiths determine how much of their risk they should transfer and how much they should retain (for example, a higher deductible means they are retaining more risk), Low Medical Expenses (-$2,500 year) Blue FirstCare FirstCars Choice Bronze Gold Gold High Medical Expenses (-$25.000/year) FirstCare FirstCare Blue Choice Bronze Gold Gold Estad Medical Cost: Out of Pocket Expenses Annual Premium Total Cost: Which plan should they choose? And Why? b. Now suppose you are choosing the insurance for yourself. Based on your situation, what is your annual medical cost, and which insurance will you choose based on your family, history, lifestyle, etc.? Why? Q m Dammersive Reader Accesoty Mode Understand the role of insurance in protecting human, financial, and property assets. Understand the importance of basic estate planning documents Max and Sarah Smith are a married couple. They are both 30 years old, and they have a 3-year-old girl. Maxis a loan officer and carns $55.000 a year. Sarah works as a retail store manager and makes $50,000 a year. Max's life expectancy is 80 years, and Sarah's is 82. They plan on retiring when they are 65. There are three health insurance policies that they could choose from (see pages 3-5). 1. Health Insurance: Help Max and Sarah to determine which of the three plans to choose. They want to know which plan would be best if they estimate their medical costs at approximately $2.500 per year and which plan to use to evaluate their medical costs closer to $25,000 per year. Help the Smiths determine how much of their risk they should transfer and how much they should retain (for example, a higher deductible means they are retaining more risk), Low Medical Expenses (-$2,500 year) Blue FirstCare FirstCars Choice Bronze Gold Gold High Medical Expenses (-$25.000/year) FirstCare FirstCare Blue Choice Bronze Gold Gold Estad Medical Cost: Out of Pocket Expenses Annual Premium Total Cost: Which plan should they choose? And Why? b. Now suppose you are choosing the insurance for yourself. Based on your situation, what is your annual medical cost, and which insurance will you choose based on your family, history, lifestyle, etc.? Why? Q m
