Mini Case Scenario: Richard graduated from a state university with a Bachelor of Science degree in accounting. He has been employed at Knoth & Cartez, a small local accounting firm(50 employees) for almost seven years. He makes $31,000 per year. Richard has been married to Marianne for six years. She graduated from a private university with a Bachelor of Science degree in elementary education. She is employed as a fourth-grade teacher at Riverside Preparatory School. She makes $22,000 per year. Richard and Marianne have three children: Carlos, age four; and twin girls, Maria and Anna, age two. The Richards have the following insurance: Health Insurance: Health insurance is provided for the entire family by Knoth & Cartez. The family is covered by an HMO. Doctor's visits are $10 per visit, prescriptions are $5 for generic brands and $10 for other brands, and there is no co-payment for hospitalization insemiprivate accommodations. Private rooms are provided when medically necessary. For emergency treatment, a $50 co-payment is required. Life Insurance: Richard has a $50,000 group term life insurance policy through Knoth & Cartez. Marianne has a $20,000 group term policy through Riverside Preparatory School. The owners of the policies are Richard and Marianne, respectively, with each other as the respective beneficiary. Disability Insurance: Richard has disability insurance through the accounting firm. Short-term disability benefits begin for any absence due to accident or illness over six days and continue forup to six months at 80% of his salary. Long-term disability benefits are available if disability continues over six months. If Richard is unable to perform the duties of his own current position, the benefits provide him with 60% of his gross salary while disabled until recovery, death, retirement, or age 65 (whichever occurs first). All disability premiums are paid by Knoth & Cartez. Marianne currently has no disability insurance. Case Assumptions: Risk-free Interest Rate is 6% Expected inflation is 3% Ricard and Marianne both expect raises at 4% annually 4. What happens to the family's health insurance if Richard is terminated from his job? What are the alternatives