Given that your client has three key complementary goals – control risk exposures, ensure the family is taken care of in the event that either spouse passes away prematurely and create a workable budget by managing cash outflows – which of the following represent effective strategies?
(1) Purchase all of the property and casualty insurance policies from the same insurer.
(2) Replace the $500,000 term life policy with a $500,000 whole life policy.
(3) Integrate individual and employer-provided disability policies to ensure that there isn’t unnecessary overlap of coverage.
(4) Purchase Medigap insurance to fill in Medicare gaps (e.g., 100% of additional hospital days up to 365, Part B co-insurance)
(5) Reduce the homeowner’s policy coverage to 70% of replacement value
1, 3 and 4
1, 2 and 3
1, 2, 3, 4 and 5
2, 4 and 5
1 and 2