Refer to Table 23.3 "Auto Insurance Plan Options". Other than the fact that the policies are provided by different companies, what could account for the significant differences among premiums presented in the table?
What is the purpose of the waiting period in LTD insurance? How does the Smith family make certain there are no gaps in coverage in the event of disability?
Examine the insurance premiums allocation shown in Figure 23.3 "Monthly Cost Allocation". Why do you think auto insurance has the highest insurance allocation and life insurance the lowest?
Do you agree with the Smith family’s assessment of its insurance needs? Are there other relevant facts about the family that should be factored into the decision?
How might accelerated benefits in a life insurance policy be triggered? What does this provide?
Which of the hypothetical Galaxy Max, Inc., health plans do you personally find preferable? Explain your reasoning.
In what way does use of a flexible spending account and premium conversion plan reduce health care costs to employees?
How can employees continue to have life and health insurance coverage without providing new evidence of insurability in the event of termination from a group plan?
What should employees consider when selecting among 401(k) investment options?
What employee benefits of the hypothetical Galaxy Max, Inc., are unrealistic and impossible to find in today’s world?
How does a reinstatement provision provide an additional layer of protection in an integrated risk program?
What are the potential disadvantages of a finite risk program?
Explain how to determine which types of coverage to include in a multiyear integrated risk program and the appropriate limits to select.
It is said that traditionally uninsurable risks are insurable under finite risk programs. Explain why this is possible.
Refer to the information in Part I of the LOCO Corporation hypothetical case study and respond to the following:
