Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

James, age 35, is married with three kids, two of which are teenagers. He estimates that his average annual earnings over the next 30 years

image text in transcribed
James, age 35, is married with three kids, two of which are teenagers. He estimates that his average annual earnings over the next 30 years will be $60,000. He also estimates that about 33% of that money will go toward paying taxes, insurance, and taking care of himself; the rest will be used to take care of his family. Currently James has a $200,000 mortgage and other debt totaling $35,000. James has the following financial assets. $400 in checking; $200 in savings; $120,000 in group life insurance; and $25,000 in a 401(k) plan. If you were interviewing James to help him make an informed life insurance purchase, what questions would you ask him? Based on the needs approach, how much life insurance do you recommend James purchase? ('some additional information may need to be inferred to calculate this amount, based on answers you create from the questions you would ask) What type of life insurance pot icy would you suggest James purchase and why? Angie was severely injured in a snow-skiing accident. She is covered under her employer's insurance, which is a PPO. The plan has a $1,000 calendar-year deductible, an 80/20 coinsurance, and an annual out-of-pocket maximum (stop loss) of $3,000. Angie was billed the following expenses due to the accident: To make matters worse, Angie was so severely injured she couldn't work for a month. She lost $4,000 in earnings. Based on this information, if Angie received services from an in-network provider (members of the PPO), how much would Angie collect from her insurance company/how much would the PPO pay? Is there any type of insurance policy Angie should have that would cover her lost wages, and if so, how much could she expect to be compensated? Nordstrom Equipment manufactures and sells power mowers to consumers as well as distributes to its own dealers. Steve is a homeowner that purchased a mower from an authorized dealer on the basis of the dealer's recommendation that "the mower is the best one available to do the job." Steve was cutting his lawn when the mower blade flew off and seriously injured his leg

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money Banking And Financial Markets

Authors: Lloyd B. Thomas

1st International Edition

0070644365, 9780070644366

More Books

Students also viewed these Finance questions

Question

=+f. Does it promise a benefit or solve a problem?

Answered: 1 week ago

Question

=+ Why do some seem like a personalized, individual message?

Answered: 1 week ago