Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 8, Problem 4FPE
Summary Introduction
To discuss: The advice which is given to the coworkers.
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While at lunch with a group of coworkers, one of your friends mentions that he plans to buy a variable life insurance policy because it provides a good annual return and is a good way to build savings for his 5-year-old’s college education. Another colleague says that she’s adding coverage through the group plan’s additional insurance option. What advice would you give them?
Your friend Taliesha Jackson of Edwardsville, Illinois, recently changed to a new job as a CPA in a moderate-size accounting firm. Knowing that you were taking a personal finance course, she asked your advice about selecting the best health insurance plan. Her employer offered five options. In addition, she could open a flexible spending arrangement to pay some of the premiums:
Option A: A traditional health insurance plan with a $500 annual deductible and an 80 percent/20 percent coinsurance clause with a $2,000 out-of-pocket limit. Taliesha must pay $80 per month toward this plan.
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Option C: Another PPO health insurance plan with a $200 annual…
Martha and Louis Mitchell are a dual-career couple who just had their first child. Louis, age 30, already has a group life insurance policy, but Martha's employer does not offer a life insurance benefit. A financial planner is recommending that the 27- year-old Martha buy a $250,000 whole life policy with an annual premium of $1,670 (the policy has an assumed rate of earnings of 5 percent a year). Help Martha evaluate this advice and decide on an appropriate course of action .
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Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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