When I examined Richard and Monica's insurance policies, I found the following:
a. Medical coverage was adequate.
b. Auto insurance was at the minimum level for the state of $50,000 to $100,000 per accident.
c. Homeowners insurance was at a level of 50 percent of replacement cost for the house. They had a 90 percent coinsurance clause.
d. Richard had no disability coverage.
e. A note saying that Richard didn't want long-term care insurance, but Monica was interested in looking at it.
Questions
1. What is your recommendation for auto insurance?
2. What is your homeowners insurance recommendation?
3. Give the advantages for Richard obtaining disability insurance.
4. Do you believe Richard and/or Monica should have long-term care insurance? Why?