Information on a health insurance scheme organized in a workplace is given below:
A family plan covers a member with a dependent spouse and children under 18 years of age.
The family plan for 'Up to 5 members' costs K1450.
The family plan for 'More than 5 members' costs K900.
The family plan for 'Limit of medical and hospital benefits' costs K45000.
Use the information above to answer the following questions.
1. Rose works with oils company and has bought a health insurance plan for herself and her 4 children, ages 2, 7, 9 and 13, and her dependent husband. What fortnightly amount would Rose be paying for her health insurance?
2. Rose has just given birth to her 5th child and was asked to update her health insurance cover. What would be her new fortnightly deductions?
1. Rose falls under the category of 'Up to 5 members' in the family plan. Therefore, she would be paying K1450 for her health insurance plan. To calculate the fortnightly amount, we divide this by 26 (as there are 26 fortnights in a year):
K1450 / 26 = K55.77 (rounded to 2 decimal places)
Therefore, Rose would be paying K55.77 fortnightly for her health insurance.
2. With the addition of her 5th child, Rose now falls under the category of 'More than 5 members'. Therefore, her new fortnightly deduction would be K900.
Question 2 is asking for the fortnightly deduction
2. With the addition of her 5th child, Rose now falls under the category of 'More than 5 members'. Therefore, her new fortnightly deduction would be K900.
Again asking for the fortnightly deduction not the cost which is K900.
To calculate the fortnightly deduction for Rose's new health insurance plan with her 5th child, we can divide the total annual cost of K900 by the number of fortnights in a year (26):
K900 / 26 = K34.62
Therefore, Rose's new fortnightly deduction for her updated health insurance plan would be K34.62.