Max and Sarah Smith are a married couple. They are both 30 years old and they have a 3 year old girl. Max is a loan officer and earns $55,000 a year. Sarah works as a retail store manager and earns $50,000 a year. Max's life expectancy is 80 years and Sarah's is 82. They plan on retiring when they are 65. There are three health insurance policies that they could choose from (see attached).

Help Max and Sarah to determine which of the three plans to choose. They want to know 3which 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 Smiths 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).

(Hint 1: Find out which one provides sufficient coverage at a reasonable cost.)

Low Medical Expenses (~$2,500/year)

High Medial Expenses (~$25, 000/year)

Estimated Medical Cost:	FirstCare Bronze	FirstCare Gold	Blue Choice Gold	FirstCare Bronze	FirstCare Gold	Blue Choice Gold
Out of Pocket Expense:
Annual Premium: Cost:	$2,519.64	$3,255.12	$4,007.52	$2,519.64	$3,255.12	$4,007.52
Total Cost:
Which plan should they choose? And Why?