Assignment: Insurance Selection Paper
Decide upon which insurance options you want to buy.
Paper should clearly indicate each of the eight insurance options and explain why you did or did not chose to purchase the insurance. Finally, provide a brief explanation about how the insurance selections have affected your budget selections. If your car insurance is higher than what is included here, use the car insurance premium you currently pay. Paper is worth 100 points and is due Monday, October28th.
Insurance Options:
1. Term life insurance (5 times gross income).Cost $25 per month
2. Long-term disability insurance (will pay 60% of your gross salary if you cannot work in your own occupation up to age 65. 3 month waiting period before benefits start). Cost 1% of gross salary per year.
3. Short-term disability insurance (will replace 100% of your gross income if you cannot work or become ill. Salary replacement will last up to 3 months maximum). Cost $50 per month.
4. Health insurance - pays for all preventative exams and immunizations. Pays 80% of all other expenses including Dr. bills and prescription drug costs. Cost $500 per month.Assume that you are too old and can not be covered by your parent's medical insurance policy.
5. Dental insurance - pays for all dentist bills including braces for minor children. Cost $50 per month.
6. Car insurance - pays to replace car if damaged in an accident. Compensates the people you injure in an accident up to $300,000. Cost $50 per month.
7. Homeowners/renter's insurance - replaces your personal property in case of fire or theft. Pays to rebuild the residence and temporary living expenses. Cost 1% of your home value or annual rent.
8. Umbrella liability coverage - pays any time you are sued for up to $2 million each time. Cost $500 per year. (Must have auto and homeowner's/ renter's insurance to be able to buy this.)
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.