2.) Use worksheet 8.1
Given your current personal financial situation do you feel you
need life insurance coverage.?
Why or why not? Use worksheet 8.1 to confirm your answer
and calculate how much additional insurance if any you might
need to purchase.
5.) Use worksheet 9.2 Bruce Kaplan a 35 year old computer
programmer earns $ 72,000 a year. His monthly take home pay
is $ 3,750 His wife Barbara works part time at their children’s
elementary school but receives no benefits. Under state law
barbras’s employer con tributes to a workers compensation
insurance fund that would provide $ 2,250 per month for six
months if Bruce were disable and unable to work.
a.) Use worksheet 9.2 to calculate Bruce’s disability insurance
needs, assuming that he won’t qualify for Medicare under the
social security benefits.
b.) Based on your answer in part A what would you advise
Bruce about his need for additional disability income
Discuss the type and size of disability income insurance
coverage, he should consider, including possible provisions he
might want to include. What other factors should he take into
account if he decides to purchase a policy?
4.) Fred and Sasha Seidel both graduate students, moved into
an apartment near the university. Sasha wants to buy renter’s
insurance, but Fred thinks that they don’t need it because their
furniture isn’t worth much. Sasha points out that among other
things they have some expensive computer and stereo
equipment. To help the Seidels resolve their dilemma suggest a
plan for deciding how much insurance to buy and give them
some ideas for finding a policy.
5.)David Salter has a PAP with coverage of $ 25,000/$50,000
for bodily injury liability,$25,000
for property damage liability,$ 5,000 for medical payments and
$ 500 deductible for collision insurance. How much will his
insurance cover in each of the following situations?
Will he have any out of pocket costs?
a.)David loses control and skids on ice, running into a parked
car and causing $ 3,785 damage to the unoccupied vehicle and
$ 2,350 damage to his own car.
b.)David runs a stop sign and causes a series auto accident
badly injuring two people. The injured parties win lawsuits
against him for $ 30,000 each.
c.)David’s 18 year old son borrows his car. He backs into a
telephone pole and causes $450 damage to the car
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