Mark and Betty 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 Mark’s breath away, until he remembered his employer-provided insurance coverage, under which he and Betty are covered. The plan features are as follows.

●		$500 per person deductible.
●		20% coinsurance.
●		$3,000 out-of-pocket yearly maximum

Based on the hospital’s estimate and their insurance policy, how much will Mark and Betty pay if Betty gives birth in early January (the beginning of a new insurance year)? How much will the insurance company pay?

Mark and Betty will pay		$______
Insurance company will pay		$ _____

Since you last checked in with Mark, he received a promotion and raise at work. His new annual income is $47,500. Given his new promotion and the fact that he and Betty 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 to pay between $ ________ and $ ______ per year.

As a hopeful new mother, Betty 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 $58,500 in coverage from her employer. Based on the estimation procedure, how much additional coverage should she shop for if her current salary is $33,900 per year?

Betty should shop for $_______

Mark has been collecting sports memorabilia for many years. Right now, his collection is worth only $900.

Does he need a personal property rider (floater) at this time?

Yes               No

Let’s say that he continues to collect and the value of the memorabilia increases to $3,600. Will he need a personal property rider at that time?

Yes                No

If yes, approximately how much will the rider cost?

Riders' cost

$_______