Tarek and Samantha 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 $8,000. This took the couples breath away. Tarek went dancing at the local dance spot and Samantha went vacationing to another country with beautiful weather. Then, when they returned, they both remembered they Tareks employer-provided insurance coverage, under which he and Samantha are covered. The plan features are as follows.

• $500 per person deductible.
• 20% coinsurance.
• $2,500 out-of-pocket yearly maximum.

1. What questions do you have for Tarek and Samantha? (List 2 questions.)
2. Based on the hospitals estimate and their insurance policy, how much will Tarek and Samantha pay if Samantha gives birth in early January (the beginning of a new insurance year)? How much will the insurance company pay?
3. What type of life insurance policy, if any, should Samantha consider if she would like to have a guaranteed cash value to use for the child's education.