Calculate the amount of term life insurance an individual should consider purchasing with the following information. Show calculations and clearly indicate
the amount of estimated insurance coverage. (Hint: this is a straight-forward calculation, don’t overthink it)
a.Age 35
b.Married
c.2 children
d.Current income: $40,000 annually
e.Spouse does not currently work
f.Plans to retire at 65
2.Explain the difference between term life insurance and whole like insurance. List advantages and disadvantages of each.
3.Explain the difference between an HMO and a PPO.
4.Explain what a deductible is and how does the size of the deductible typically affect the premium?
5.Define mutual fund
Sample Solution
