Questions
• Q1. When considering disability income insurance, what length of waiting period and duration of benefits should the Brocks consider?
• Q2. What types of health insurance coverages would be recommended for the Brocks?
• Q3. How should the Brocks determine whether they have enough insurance coverage for their home?
• Q4. What factors should the Brocks consider in deciding whether to purchase collision insurance coverage for their used car?
Property & Heath Insurance
In considering the disability income insurance, it is important for the Brocks to review the kinds of policies that are available. This may either be the long-term or short-term disability plans. The short-term disability income insurance may cater for their benefits sooner and for a brief duration of time as compared to the long-term disability insurance plan (Weisser, & Renzulli, 2014). Under the term of their disability income insurance plan, they may be put to wait for a period before receiving the benefits depending on the nature of the policy chosen.
In this case, the short-term disability insurance plan may be effective for the Brocks since the waiting periods under this policy would generally range from 0-14 days according to the terms placed on the policy (Weisser, & Renzulli, 2014). The short-term insurance policy would, therefore, pay the Brocks their benefits for a period of two years. Since most disabilities only last for a short time before recovery, it is, therefore, significant that this family considers the short-term policy.
Health Insurance Coverage
The Brocks have undergone several changes that have affected their financial planning. Considering the fact that their homes value has increased as a result of inflation and the purchase made of the new car including additional transportation and basic needs, it is significant that a precise planning is made in choosing the right insurance coverage In this case, it is essential that this family considers the Health Maintenance Organization that operates as a prepaid healthcare plan (Weisser, & Renzulli, 2014). Through this policy, each and every member of the family is covered and is assigned to a physician or doctor and in the event that there is need for special care, the patient is referred to specialists under the HMOs list of providers.
Determining Enough Insurance Coverage for a Home
Conducting a home survey is an important element in determining if an insurance coverage is sufficient for the Brocks. It is necessary to realize that some of the improvements this family made may come with unexpected insurance costs (Weisser, & Renzulli, 2014). This therefore necessarily requires that this family details all their property and estimate the costs used in replacing these items in the event of a disaster. Considering the fact that the rise in inflation has increased their homes value may come with certain costs on the insurance of the house.
Factors to Consider in Purchasing the Collision Insurance
The Brocks in their decision to purchase the collision insurance for their second-hand car may consider some factors before purchasing the plan. One of the factors includes the aging nature of the car. It is significant to note that the value of the car may have changed including the costs of the repairs (Weisser, & Renzulli, 2014). It is also important that the family reviews its policies and sees their annual premiums and if the value of the accident coverage is more than 10% on what is gotten in the car in the case it was calculated, it would be advisable not to consider this coverage.
As vehicles continue to age, they tend to be used less frequently and in many instances may not be trusted over long distances (Weisser, & Renzulli, 2014). In the event that the Brocks spend less time on the roads, the chances of getting involved in an accident may be less, thus decreasing the amounts that should be paid for coverage. These are elements that may determine if the collision coverage is sufficient.
References
Weisser, C., & Renzulli, K. A. (2014). Modern Family Finances. Money, 43(11), 84-93.
