Max and Sarah Smith are a married couple. They are both 30 years old and they have a3 year old girl. Max is a loan officer and eans $55,000 a year. Sarah works as a retail store manager and eans $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 which plan would be best if they estimate their mdical 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)I High Medial Expenses (-$25,000/year) NetiealCoEicatze EatCaraacocokaa olda Blue Choice EistCare Bronze Estimated Cost: EirstCare Bronze Out of Pocket Annual Premium Total Cost Which plan should they choose? And Why? 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 eams $55,000 a year. Sarah works as a retail store manager and eams $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) Health Insurance Help Max and Sarah 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 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). Low Medical Expenses (-$2,500/year) High Medial Expenses (-$25,000lyear) Estimated Medical Cost: EBronzeEtCa Gold Blue ChoiceCas EurstCarc Bronze EstCats Gold Blue Choice E EstCaeBlue Choice Bronze Gold Gold Out of Pocket Exper Annual Premium: Total Cost Which plan should they choose? And Why? Now suppose you are choosing the insurance for youself Based on your own situation, what is your annual medical cost and which i nsurance are you going to choose based on your family, history, lifestyle, etc.? Why? Life Insurance What type of life insurances the Smiths get? a Term Life InsuranceCash-value Whole Life Insurance aNoe Explain your reasoning with evidence from the course materials Disability Insurance What type of disabality insurance should the Smiths get? Disability Insurance Coverage for Max Disability Insurance Coverage for Sarah o Short Term o Sbort Term o Long Term o Long Term a None a None Explain your reasoning with evidence from the course materials oed
