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ong-term care services this year? Show your estimate for each elimination period. Elimination Period 180-day $ Estimate I

ong-term care services this year? Show your estimate for each elimination period. Elimination Period 180-day $ Estimate I

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Analyze each of the options. How much will they need to pay before benefits begin if Marcel purchased a policy today and needed long-term care services this year? Show your estimate for each elimination period. Elimination Period 180-day 90-day 30-day en 10 $ Estimate I
Transcribed Image Text:Analyze each of the options. How much will they need to pay before benefits begin if Marcel purchased a policy today and needed long-term care services this year? Show your estimate for each elimination period. Elimination Period 180-day 90-day 30-day en 10 $ Estimate I
Marcel and TJ have been married for 35 years. Both are in great health, but they feel it is time that they start planning for their future health needs. Marcel is 60 years old, and TJ is 61 years old. They have been approached by a long-term care insurance salesperson who is offering the following insurance product: ● ● . . . Marcel and TJ are interested in possibly purchasing one of these policies. Use the following information to help them analyze which policy may be the best alternative. . Annual maximum benefit: $60,000 or 80% of annual cost, whichever is less. Daily maximum benefit: $167 or 80% of daily cost, whichever is less. Billing cycle: 360 days. Premium for policy with 180-day elimination period: $2,900. Premium for policy with 90-day elimination period: $3,300. Premium for policy with 30-day elimination period: $3,800. . The current annual cost of a good nursing care facility in their area is $72,000. They have $25,000 saved in a money market savings account, $10,000 in a 1-year CD, and $12,000 in EE savings bonds.
Transcribed Image Text:Marcel and TJ have been married for 35 years. Both are in great health, but they feel it is time that they start planning for their future health needs. Marcel is 60 years old, and TJ is 61 years old. They have been approached by a long-term care insurance salesperson who is offering the following insurance product: ● ● . . . Marcel and TJ are interested in possibly purchasing one of these policies. Use the following information to help them analyze which policy may be the best alternative. . Annual maximum benefit: $60,000 or 80% of annual cost, whichever is less. Daily maximum benefit: $167 or 80% of daily cost, whichever is less. Billing cycle: 360 days. Premium for policy with 180-day elimination period: $2,900. Premium for policy with 90-day elimination period: $3,300. Premium for policy with 30-day elimination period: $3,800. . The current annual cost of a good nursing care facility in their area is $72,000. They have $25,000 saved in a money market savings account, $10,000 in a 1-year CD, and $12,000 in EE savings bonds.
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