1. The Kelleher family has health insurance coverage that pays 80 percent of out-of-hospital expenses after a $500 deductible per person. If one family member has doctor and prescription medication expenses of $1,100, what amount would the insurance company pay?
2. You are the wage earner in a "typical family," with $40,000 gross annual income. Use the easy method to determine how much life insurance you should carry.