Homework

17.2 question #4 (p. 773)

Explain how present value can be utilized to estimate the economic value of life.

17.3 question #1 (p. 790) 

Who bears the risks associated with living too long?

Homework 19

19.1 question #1 (p. 881)

Why does yearly renewable term life become cost prohibitive over time?

19.2 question #6 (p. 914)

Would you expect one-year term insurance that is renewable and convertible to require a higher premium than one-year term insurance without these features? Explain.

Viatical article questions #1, #2, #3 (p. 941-944) 

1. Is it ethical to profit from someone else’s misfortune by buying his or her life insurance at a discount?

2. Are life settlements a good idea for the policyholder? What are their advantages and disadvantages?

3. Do you think there is a need for viatical or life settlements when accelerated benefits are available?

Homework 20

20.2 question #6 (p. 973)

How do employers protect themselves from the risk of catastrophic financial loss when they self-insure a benefits program?

20.3 question #7 (p. 980)

How are FSAs funded? What are the limitations of FSAs?

20.4 question #3 (p. 995) 

The intent behind the passage of COBRA was to reduce the number of uninsured persons. How does COBRA work to achieve this objective?

Homework 22

22.1 question #1 (p. 1110)

What is the purpose of including deductible and coinsurance provisions in group medical insurance policies?

22.2 question #5 (p. 1119)

What kinds of expenses are cancer and critical illness policies intended to cover?

22.3 question #1 (p. 1137) 

Why do most group disability insurance plans limit income replacement to no more than 70 percent of salary, even if employees are willing to pay more to get 100 percent coverage?

Homework 21

21.1 question #1 (p. 1016)

What is the PBGC? Why is it an important agency?

21.2 Compare/contrast 401k, 403b, 457 plans