Eduardo and Lucia Ricardo are a married couple. They are both 39 years old and they have a son (17 years old) and a daughter (14 years old). Eduardo is an engineer and earns $95,000 a year. Lucia is a teacher and earns $30,000 a year. Eduardos life expectancy is 80 years and Lucia is 82. They plan on retiring when they are 67. There are three health insurance policies that they could choose from (see below).

1. Health Insurance:

1. Help Eduardo and Lucia 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 $4000 per year and which plan to use if they estimate their medical costs closer to $30,000 per year. Help the Ricardos 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 (~$4,000/year)			High Medial Expenses (~$30,000/year)
Estimated Medical Cost:	FirstCare Bronze	FirstCare Gold	Blue Choice Gold	FirstCare Bronze	FirstCare Gold	Blue Choice Gold
Out of Pocket Expenses:
Annual Premium:
Total Cost:
Which plan should they choose? And Why?

2. Now suppose you are choosing the insurance for yourself. Based on your own situation, what is your annual medical cost and which insurance are you going to choose based on your family, history, lifestyle, etc.? Why?

2. Life Insurance:
   1. What type of life insurances the Ricardo get?

Term Life Insurance Cash-Value Whole Life Insurance None

2. Explain your reasoning with evidence from the course materials:

3. Disability Insurance:
   1. What type of disability insurance should the Ricardo get?

Disability Insurance Coverage for Eduardo: Short Term Long Term None

Disability Insurance Coverage for Lucia: Short Term Long Term None

2. Explain your reasoning with evidence from the course materials:

4. Long-Term Care Insurance:
   1. Should the Ricardo get long-term care insurance? Yes No

2. Explain your reasoning with evidence from the course materials: