James and Mary are thinking about starting a family. In preparation for this new phase of their life, they visited a local hospital to learn about the costs of delivery and care. They learned that the average cost for a normal birth is $7,500. This took Jamess breath away, until he remembered his employer-provided insurance coverage, under which he and Mary are covered. The plan features are as follows.

$500 per person deductible.

10% coinsurance.

$2,500 out-of-pocket yearly maximum.

Since you last checked in with James, he received a promotion and raise at work. His new annual income is $45,000. Given his new promotion and the fact that he and Mary are thinking of starting a family, he is considering buying a disability policy. Because his employer does not provide this as an employee benefit, he needs to buy a policy in the open market. How much replacement income should he shop for? He should look for a policy that will replace $ of his income.

How much might this type of policy cost per year? He can expect o pay between $ and $ per year.

As a hopeful new mother, Mary is anxious to make sure that, as a family, their financial house is in order. She is thinking about buying a life insurance policy. Right now, she has $50,000 in coverage from her employer. Based on the estimation procedure, how much additional coverage should she shop for if her current salary is $32,000 per year?

Mary should shop for $

James has been collecting sports memorabilia for many years. Right now, his collection is worth only $650. Does he need a personal property rider (floater) at this time? yes or no

Lets say that he continues to collect and the value of the memorabilia increases to $2,600. Will he need a personal property rider at that time? yes or no

if yes, how much will the rider cost? $