helping lil bro with homework and he forgot to bring his books home and I cant remember anything
1. The word “risk” is used often in insurance discussions. Assume you have an apartment and how likely you are to buy Renter’s Insurance?
2. When you buy auto insurance, you have a choice of buying a full coverage policy or a basic “state minimum” policy. The difference is what gets paid for if you cause an accident. A full coverage policy will pay to fix or replace your car after you pay a deductible amount, like $500. A basic “liability” policy will only pay for damage to the other vehicle, if you cause the accident. Fixing your car becomes your problem. As you would expect, the full coverage policy costs more because it does more for you.
Answer the following questions about buying auto insurance.
a. What would be the situation in which you would probably buy just the basic auto insurance? Hint: It has something to do with the car you are driving and paying less for the insurance.
b.What would be a reason that you would be willing to pay more to have the full coverage auto insurance?
3. Let’s assume that 5 years from now you are working at a job that offers health insurance. The cost for a person your age is $180 per month, but the company pays 75% and you pay only 25%. How much will the insurance cost you out of your paycheck?
4. Now let’s assume that 10 years from now you have a family and two children. You have a good job and are earning $30,000 a year. Your company has a $25,000 group life insurance policy for all employees. Most experts say you need to have 7 times your salary in life insurance. How much more life insurance do you need?
i need help because i have to get to bed i hae work at 3:00 in the morning i need to help my lil bro with these questions please
Oof Seven years
1. In order to determine how likely you are to buy Renter's Insurance for your apartment, you need to consider the concept of risk. Risk refers to the likelihood of something undesirable happening and the potential impact or loss that it may cause. In this case, the risk would be the possibility of something happening to your apartment, such as theft, fire, or damage.
To assess the risk, you can consider factors such as the location of your apartment, the crime rate in the area, the age and condition of the building, and the value of your personal belongings. If you live in a safe neighborhood, have a secure building, and don't have expensive belongings, the risk may be relatively low. In this case, you might be less likely to buy Renter's Insurance.
However, if you live in an area with a high crime rate, have an older building prone to maintenance issues, or have valuable possessions that you want to protect, the risk would be higher. In these circumstances, you may be more inclined to purchase Renter's Insurance to mitigate the potential financial loss.
It's important to consider your personal circumstances and weigh the cost of the insurance against the potential risks. If you decide that the risk is significant and the cost of the insurance is reasonable, then you might choose to buy Renter's Insurance.
2. a. The situation in which you would probably buy just the basic auto insurance is when you have an older or less valuable car. Since basic auto insurance only covers damage to the other vehicle in an accident that you cause, it does not provide coverage for repairs or replacements to your own car. If your car has a low market value and the cost of repairs or replacements would be relatively inexpensive, you may choose to opt for basic auto insurance to save on premium costs.
b. A reason that you would be willing to pay more to have full coverage auto insurance is when you have a newer or more valuable car. Full coverage insurance provides coverage for repairs or replacements to your own car after paying a deductible. If your car has a high market value and the cost of repairs or replacements would be significant, having full coverage can provide you with peace of mind and financial protection in case of an accident.
3. To calculate how much the health insurance will cost you out of your paycheck, you need to determine the monthly premium amount. In this scenario, the cost for a person your age is $180 per month, with the company paying 75% and you paying 25%.
To find out your portion of the premium, you can multiply the total monthly premium by your share percentage:
$180 x 25% = $45
Therefore, the health insurance will cost you $45 out of your paycheck each month.
4. In order to determine how much more life insurance you need, you need to consider your current salary and the recommended coverage amount. Most experts suggest having life insurance coverage that is 7 times your annual salary.
Given that your current annual salary is $30,000, you would need:
$30,000 x 7 = $210,000
Since your company provides a group life insurance policy with a coverage amount of $25,000, you would need additional coverage to reach the recommended amount.
$210,000 - $25,000 = $185,000
Therefore, you would need an additional $185,000 in life insurance coverage.