Frank and Fanny, a married couple with no children, like to hike along the trails in Hillside Country Park located behind their sub-urban home during the weekends. The monthly salary of Frank and Fanny are $43,000 and $47,000 respectively. The balance of their mortgage loan is $4,805,000 and the loan balances for their two cars are $502,000. They have bought both term life insurance and health insurance. Fanny was injured when she was riding bicycle in the Chabot Park Bike Lane two months ago. She needed to stay in the hospital for an intermediate operation. The following expenses were incurred for her medical treatment: a) $820 per day for 14 days of hospitalisation b) $180 per day for spending on meals in the hospital for 14 days c) $28,000 attending doctor's visit fee (14 visits on 12 days) d) $3,400 inpatient specialist's fee e) $32,000 surgeon's fee f) $3,800 anaesthetist's fee g) $600 each physiotherapy per week for 6 weeks h) $4,200 operating theatre fee i) $5,250 advanced diagnostic imaging j) $2,300 hospital laboratory services k) $1,250 per outpatient visit after hospitalisation for 3 times A summary of benefits coverage provided by Fanny's health insurance plan is stated in the table below: Summary of Benefit Maximum Benefit Amount per insured person (S) Room and general nursing care 700 per day (Maximum 100 days) Meal allowance 150 per day (Maximum 100 days) Attending doctor's visit fee 750 per day (Maximum 100 days) Inpatient specialist's fee 3,000 Surgeon's fee Anaesthetist's fee Physiotherapy fee Operating theatre fees Advanced diagnostic imaging Hospital laboratory services Pre- and post-hospitalisation outpatient visits Hospital cash Complex: 50,000 Major: 25,000 Intermediate: 12,500 Minor: 6,250 30% of Surgeon's fee payable Note 2,000 3,750 5,000 15,000 2,500 (Maximum 10 times) 500 per day (Maximum 100 days) REQUIRED a) State any TWO differences between stock life insurance companies and mutual life insurance companies. Identify which type of life insurance companies generally sell term life insurance. [word limit: 80 words] b) Suppose Fanny expects the total funeral cost will be $180,000, calculate Fanny's life insurance need by using the Easy method and DINK method respectively. Show your workings. c) What is the total dollar amount covered by Fanny for her bicycle injury? Construct and complete the following table as the work of your calculation on your answer sheet. Benefit items ? Total Actual cost incurred (S) (A) ? E Amount covered by insurance company (S) (B) ? # Amount exceeding coverage (S) (C)=(A)-(B) ? 1 d) If Fanny claimed her 14-day medical treatment from another health insurance named CIA health plan, CIA health plan includes a deductible of $500 on the total amount of medical expenses incurred, a coinsurance of 35% (65/35), and an out-of-pocket limit of $30,000. What is the amount borne by Fanny for the medical treatment of her injury in this CIA health plan? Briefly explain.