When I examined Richard and Monica’s insurance policies, I found the following: • Medical coverage was...

When I examined Richard and Monica’s insurance policies, I found the following: • Medical coverage was adequate. • Auto insurance was at the minimum level for the state of $50,000 to $100,000 per accident. • Homeowners insurance was at a level of 50 percent of replacement cost for the house. They had a 90 percent coinsurance clause. • Richard had no disability coverage. • A note saying that Richard didn’t want long-term care insurance, but Monica was interested in looking at it.

1. What is your recommendation for auto insurance?

2. What is your homeowner’s 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? What are some advantages of long term care insurance?

Expert Solution

Answer 1) The Auto insurance is not adequately covered ,they should increase the limit at least to 100/300 i.e. $100,000 of bodily injury per person and $300,000 coverage for per accident basis.

Answer 2) The homeowner’s insurance is also not adequate as just having the clause of 50% replacement , but the a 90 percent coinsurance clause. The insurance replacement cover should be increased .

Answer 3) disability insurance benefits :

provide replacement for a portion of monthly base salary in case of disability
It can be short term as well as long term

Answer 4) They should have along term care insurance, as some prominent benefits are

support in costs linked with long-term care.
generally covers all the cost not covered by other health insurance.
provide covers in case of not able to perform 2 of the 6 activities of daily living , bath, eat, toileting, walk, transferring from one place to other and dressing.
insurance is available for age between 18-64 years.

jeff jeffy answered 2 years ago

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When I examined Richard and Monica’s insurance policies, I found the following: • Medical coverage was...

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