Introduction to Personal Finance Unit 7 Project Learning Goals: Understand the concept of protection and how it relates to risk and rid Stay and Play at Home with Popular Past Goog Understand the role of insurance in protecting human, financial, and property assets. Understand the importance of basic estate planning documents. Don and Kasey Johnson are a married couple. They are both 30 years old and they have a 3-year-old girl. Don is a loan officer and earns $75,000 a year. Kasey works as a retail store manager and earns $45,000 a year. Don's life expectancy is 80 years and Kasey's 82. They plan on retiring when they are 65. There are three health insurance policies that they could choose from (see page 3-5). 1. Health Insurance: a. Help Don and Kasey 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 if they estimate their medical costs closer to $25,000 per year. Help the Johnsons 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) High Medial Expenses (-$25,000/year) FirstCare Bronze FirstCare Gold Blue Choice Gold FirstCare Bronze FirstCare Gold Blue Choice Gold Estimated Medical Cost: Out of Pocket Expenses: Annual Premium: Total Cost: Which plan should they choose? And Why? Stay and Play at Home with Popular Past b. Now suppose you are choosing the insurance for yourself. Based on y annual medical cost and which insurance are you going to choose based on your family, history, lifestyle, etc.? Why? 2. Life Insurance: a. What type of life insurances the Johnsons get? a Term Life Insurance Cash-Value Whole Life Insurance None b. Explain your reasoning with evidence from the course materials: 3. Disability Insurance: a. What type of disability insurance should the Johnsons get? Disability Insurance Coverage for Don: Short Term Disability Insurance Coverage for Kasey: a Short Term Long Term None o Lol Stay and Play at Home with Popul. b. Explain your reasoning with evidence from the course materials: 4. Long-Term Care Insurance: a. Should the Johnsons get long-term care insurance? 0 Yes o No b. Explain your reasoning with evidence from the course materials: Monthly Cost FirstCare FirstCare Health Plans Bronze Firstcare Health Plans HMO $209.97 HEALTH PLANS Deductible $4,500 Stay and Play at Home Coinsurance 30% Out of Pocket Maximum $6,350 More Details Find a Provider Deductibles and Cost Sharing In Network Out of Network Deductible (Individual) $4,500 $0 Deductible (Family) $10,000 $0 Coinsurance 30% $0 Out of Pocket Maximum (Individual) $6,350 $0 Out of Pocket Maximum (Family) $0 Services $12,700 In Network $60 Out of Network Primary Care Visit $0 Specialist Visit $70 Copay after deductible $0 In Patient Hospital Services 30% Coinsurance after deductible $0 Emergency Room Services $300 Copay after deductible $300 copay Mental / Behavioral Health So $70 copay 30% coinsurance Imaging (CT/PET Scans, MRIS) Rehabilitative Speech Therapy $70 copay Rehabilitative Occupational & Physical Therapy $70 copay Preventative Care $0 Laboratory Outpatient and Professional Services $0 X-ray and Diagnostic Imaging Prescription Drugs $0 Out of Network Generic Rx Stay and Play at H 30% coinsurance In Network $20 Copay after deductible $50 Copay after deductible $70 Copay after deductible 30% Coinsurance after deductible Preferred Brand Rx Non Preferred Brand Rx Specialty Drugs FirstCare FirstCare Health Plans Gold Firstcare Health Plans HMO Monthly Cost $271.26 HEALTH PLANS Deductible 0% Premium: $271.26 Subsidy: $0.00 Coinsurance 20% Stay and Play at Home wi Out of Pocket Maximum $6,350 More Details Find a Provider Deductibles and Cost Sharing In Network Out of Network Deductible (Individual) $0 $0 $0 Deductible (Family) $0 Coinsurance 20% $0 Out of Pocket Maximum (Individual) $6,350 $0 Out of Pocket Maximum (Family) $12,700 $0 Services In Network Out of Network Primary Care Visit $30 $0 $50 $0 Specialist Visit In Patient Hospital Services Emergency Room Services 20% $0 $250 $250 copay Mental / Behavioral Health $50 copay SO Imaging (CT/PET Scans, MRIS) 20% coinsurance $50 copay Rehabilitative Speech Therapy Rehabilitative Occupational & Physical Therapy $50 copay Preventative Care $0 Laboratory Outpatient and Professional Services $0 $0 X-ray and Diagnostic Imaging Prescription Drugs In Network Out of Network Generic Rx $20 Preferred Brand Rx $50 $70 20% Non Preferred Brand Rx Specialty Drugs Stay and Play at Home with P Monthly Cost BlueCross BlueShield Blue Choice Gold PPO 002 Blue Cross Blue Shield of Texas PPO $333.69 Deductible $1,500 Stay and Play at Home wit Jubstay. 50.00 Coinsurance 20% Out of Pocket Maximum $3,500 More Details Find a Provider Deductibles and Cost Sharing In Network Out of Network Deductible (Individual) $1,500 $3,000 Deductible (Family) $4,500 $9,000 Coinsurance 20% 40% Out of Pocket Maximum (Individual) $3,500 $7,000 Out of Pocket Maximum (Family) $10,500 $21,000 Services In Network Out of Network Primary Care Visit $10 40% coinsurance Specialist Visit $60 40% coinsurance In Patient Hospital Services $200 Copay per Stay and 20% Coinsurance 40% coinsurance Emergency Room Services $400 Copay and 20% Coinsurance a 20% coinsurance after $400 copay/visit Mental / Behavioral Health 40% coinsurance $10 copay 20% coinsurance 40% coinsurance 20% coinsurance 40% coinsurance Imaging (CT/PET Scans, MRIS) Rehabilitative Speech Therapy Rehabilitative Occupational & Physical Therapy 20% coinsurance 40% coinsurance Preventative Care $0 40% coinsurance Laboratory Outpatient and Professional Services 20% coinsurance 40% coinsurance 20% coinsurance 40% coinsurance Out of Network In Network X-ray and Diagnostic Imaging Prescription Drugs Generic Rx Preferred Brand Rx Non Preferred Brand Rx No Charge $35 $75 Specialty Drugs $150 Introduction to Personal Finance Unit 7 Project Learning Goals: Understand the concept of protection and how it relates to risk and rid Stay and Play at Home with Popular Past Goog Understand the role of insurance in protecting human, financial, and property assets. Understand the importance of basic estate planning documents. Don and Kasey Johnson are a married couple. They are both 30 years old and they have a 3-year-old girl. Don is a loan officer and earns $75,000 a year. Kasey works as a retail store manager and earns $45,000 a year. Don's life expectancy is 80 years and Kasey's 82. They plan on retiring when they are 65. There are three health insurance policies that they could choose from (see page 3-5). 1. Health Insurance: a. Help Don and Kasey 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 if they estimate their medical costs closer to $25,000 per year. Help the Johnsons 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) High Medial Expenses (-$25,000/year) FirstCare Bronze FirstCare Gold Blue Choice Gold FirstCare Bronze FirstCare Gold Blue Choice Gold Estimated Medical Cost: Out of Pocket Expenses: Annual Premium: Total Cost: Which plan should they choose? And Why? Stay and Play at Home with Popular Past b. Now suppose you are choosing the insurance for yourself. Based on y annual medical cost and which insurance are you going to choose based on your family, history, lifestyle, etc.? Why? 2. Life Insurance: a. What type of life insurances the Johnsons get? a Term Life Insurance Cash-Value Whole Life Insurance None b. Explain your reasoning with evidence from the course materials: 3. Disability Insurance: a. What type of disability insurance should the Johnsons get? Disability Insurance Coverage for Don: Short Term Disability Insurance Coverage for Kasey: a Short Term Long Term None o Lol Stay and Play at Home with Popul. b. Explain your reasoning with evidence from the course materials: 4. Long-Term Care Insurance: a. Should the Johnsons get long-term care insurance? 0 Yes o No b. Explain your reasoning with evidence from the course materials: Monthly Cost FirstCare FirstCare Health Plans Bronze Firstcare Health Plans HMO $209.97 HEALTH PLANS Deductible $4,500 Stay and Play at Home Coinsurance 30% Out of Pocket Maximum $6,350 More Details Find a Provider Deductibles and Cost Sharing In Network Out of Network Deductible (Individual) $4,500 $0 Deductible (Family) $10,000 $0 Coinsurance 30% $0 Out of Pocket Maximum (Individual) $6,350 $0 Out of Pocket Maximum (Family) $0 Services $12,700 In Network $60 Out of Network Primary Care Visit $0 Specialist Visit $70 Copay after deductible $0 In Patient Hospital Services 30% Coinsurance after deductible $0 Emergency Room Services $300 Copay after deductible $300 copay Mental / Behavioral Health So $70 copay 30% coinsurance Imaging (CT/PET Scans, MRIS) Rehabilitative Speech Therapy $70 copay Rehabilitative Occupational & Physical Therapy $70 copay Preventative Care $0 Laboratory Outpatient and Professional Services $0 X-ray and Diagnostic Imaging Prescription Drugs $0 Out of Network Generic Rx Stay and Play at H 30% coinsurance In Network $20 Copay after deductible $50 Copay after deductible $70 Copay after deductible 30% Coinsurance after deductible Preferred Brand Rx Non Preferred Brand Rx Specialty Drugs FirstCare FirstCare Health Plans Gold Firstcare Health Plans HMO Monthly Cost $271.26 HEALTH PLANS Deductible 0% Premium: $271.26 Subsidy: $0.00 Coinsurance 20% Stay and Play at Home wi Out of Pocket Maximum $6,350 More Details Find a Provider Deductibles and Cost Sharing In Network Out of Network Deductible (Individual) $0 $0 $0 Deductible (Family) $0 Coinsurance 20% $0 Out of Pocket Maximum (Individual) $6,350 $0 Out of Pocket Maximum (Family) $12,700 $0 Services In Network Out of Network Primary Care Visit $30 $0 $50 $0 Specialist Visit In Patient Hospital Services Emergency Room Services 20% $0 $250 $250 copay Mental / Behavioral Health $50 copay SO Imaging (CT/PET Scans, MRIS) 20% coinsurance $50 copay Rehabilitative Speech Therapy Rehabilitative Occupational & Physical Therapy $50 copay Preventative Care $0 Laboratory Outpatient and Professional Services $0 $0 X-ray and Diagnostic Imaging Prescription Drugs In Network Out of Network Generic Rx $20 Preferred Brand Rx $50 $70 20% Non Preferred Brand Rx Specialty Drugs Stay and Play at Home with P Monthly Cost BlueCross BlueShield Blue Choice Gold PPO 002 Blue Cross Blue Shield of Texas PPO $333.69 Deductible $1,500 Stay and Play at Home wit Jubstay. 50.00 Coinsurance 20% Out of Pocket Maximum $3,500 More Details Find a Provider Deductibles and Cost Sharing In Network Out of Network Deductible (Individual) $1,500 $3,000 Deductible (Family) $4,500 $9,000 Coinsurance 20% 40% Out of Pocket Maximum (Individual) $3,500 $7,000 Out of Pocket Maximum (Family) $10,500 $21,000 Services In Network Out of Network Primary Care Visit $10 40% coinsurance Specialist Visit $60 40% coinsurance In Patient Hospital Services $200 Copay per Stay and 20% Coinsurance 40% coinsurance Emergency Room Services $400 Copay and 20% Coinsurance a 20% coinsurance after $400 copay/visit Mental / Behavioral Health 40% coinsurance $10 copay 20% coinsurance 40% coinsurance 20% coinsurance 40% coinsurance Imaging (CT/PET Scans, MRIS) Rehabilitative Speech Therapy Rehabilitative Occupational & Physical Therapy 20% coinsurance 40% coinsurance Preventative Care $0 40% coinsurance Laboratory Outpatient and Professional Services 20% coinsurance 40% coinsurance 20% coinsurance 40% coinsurance Out of Network In Network X-ray and Diagnostic Imaging Prescription Drugs Generic Rx Preferred Brand Rx Non Preferred Brand Rx No Charge $35 $75 Specialty Drugs $150
