Gunther and Maria are married. Maria is a cosmetic surgeon who earns $220,000 per year. Gunther is a technician for a cable company and earns $62,000 per year.

Seven years ago, they purchased a house requiring a mortgage of $350,000 amortized over 20 yearsthe current mortgage balance is $219,000. Gunther also has a $75,000 loan registered in his name only that he will repay within five years. Based on their lifestyle, they will likely always have approximately $140,000 in outstanding debt from credit cards and personal lines of credit.

The couple's only insurance coverage belongs to Maria: group coverage of two-and-a-half times her annual salary and a $200,000 individual whole life policy. Gunther is the designated beneficiary under both policies and Maria trusts that he will use the funds in accordance with her wishes. Upon her death, Maria would like to leave her nephew a lump sum of $250,000. Similarly, upon his death, Gunther would like to leave a $50,000 charitable bequest to his church. The couple would like to use insurance to fund both gifts.

Upon the death of either spouse, Gunther and Maria would like their respective insurance coverage to offset all outstanding debts so that the surviving spouse will not be left in financial difficulty. They want insurance that has fixed premiums that over the long-term remain as low as possible.

If the only reasons Maria and Gunther want to buy insurance are for the reasons detailed above, what type of insurance coverage wouldBESTmeet the needs of Maria and Gunther?

a)$200,000 term-100 insurance on Gunther with a $75,000 5-year decreasing term insurance rider and a $225,000 15-year decreasing term insurance rider

b)$500,000 joint-last-to-die, whole life insurance with a $250,000 joint-last-to-die, 15-year decreasing term insurance rider

c)$750,000 adjustable whole life insurance on Maria

d)$575,000 joint-first-to-die, universal life insurance with mortality deductions based on yearly renewable term

Maria and Gunther are healthy but, Gunther's family has a history of heart disease and Maria's family has had incidences of cancer. Should they suffer a long-term illness, they want to protect against the erosion of the purchasing power of any insurance benefits they receive. ToFULLYaddress their concerns, what combination of riders should Gunther and Maria consider adding to any life insurance contract they purchase?

a)terminal illness benefit rider and a dread disease rider

b)terminal illness benefit rider, a long-term care rider and a cost of living adjustment (COLA) rider

c)long-term care rider and a COLA rider

d)terminal illness benefit rider, a dread disease rider, a long-term care rider and a COLA rider

If Gunther and Maria are also interested in purchasing disability insurance, what option would be made available to them?

a)$18,333 per month own occupation coverage on Maria; $5,166 per month own occupation coverage on Gunther

b)$12,000 per month regular occupation coverage on Maria; $3,750 per month regular occupation coverage on Gunther

c)$12,222 per month own occupation coverage on Maria; $3,444 per month regular occupation coverage on Gunther

d)$15,000 per month own occupation coverage on Maria; $3,000 per month any occupation coverage on Gunther