A periodic payment deferred annuity would be the most appropriate plan structure for this client. This is because the client wants to set aside something each year for annuity payments, indicating a preference for periodic payments. Additionally, since the client does not currently have significant savings, a deferred annuity would allow the client to accumulate savings over time before starting to receive annuity payments in the future. This would help supplement their future Social Security benefits and company pension plan.
Automobile insurance is indeed an arrangement between an individual and an insurance company to provide protection against risks associated with automobile accidents. It is a contract in which the individual pays a premium to the insurer, who then agrees to compensate for any damages or losses incurred due to accidents. This insurance coverage helps individuals financially in case of vehicle damage, medical expenses, or liability claims arising from accidents. Therefore, the statement "Automobile Insurance is an arrangement between an individual and insurer to protect the individual against risk from automobile accidents" is true.
Homeowners insurance typically covers damage or loss to your property caused by certain events, such as fire, theft, or vandalism. However, in this scenario, the question states that your computer is stolen, which implies that you are a renter and not a homeowner. Therefore, the correct answer is false, as renters would typically need to purchase renter's insurance to cover their belongings in the event of theft or damage.
The correct answer is Automobile because the question is asking about the situation where you accidentally strike the guardrail while trying to avoid hitting a squirrel. This scenario is related to driving or operating a vehicle, specifically an automobile. The other options (Life, Health, None of the above) are not relevant to the given situation.
Mary should elect the life income option under her own policy to guarantee Larry will have lifetime income if she dies first. This option provides a regular income stream for the rest of Larry's life, ensuring that he will be financially taken care of even if Mary is no longer alive.
If you hit and injure a pedestrian in a crosswalk, your automobile insurance would cover the damages and medical expenses related to the accident. Automobile insurance typically provides coverage for accidents involving pedestrians, ensuring that the injured party receives the necessary compensation for their injuries and any resulting medical treatment.
Disability insurance is the correct answer because it provides coverage for individuals who are unable to work due to an injury or illness. In this scenario, the person is injured in an automobile accident and is unable to work for 4 months, making disability insurance the appropriate type of insurance to provide financial protection during this period of disability.
The explanation for the given correct answer is that a deductible is indeed the portion of an insurance coverage that the insured individual is responsible for paying. This amount is typically determined by the insurance company and is paid by the insured before the insurance company starts covering the remaining costs. The deductible is often set to determine the monthly premium amount, meaning that a higher deductible may result in a lower premium and vice versa. Therefore, the statement "The deductible is the part of the insurance coverage that the insured will pay" is true.
Since Donna paid the initial premium and her application showed no negative factors, the insurance company has no reason to reject the risk or classify it differently. Therefore, they will issue the policy as planned and pay the face value to Donna's beneficiary, despite her unfortunate death before the policy could be issued.
Medicaid does not limit financial assistance to persons age 65 or over who are in need of medical services they cannot afford. Medicaid is a program that provides medical assistance to eligible needy individuals of all ages, not just those over 65. The program's purpose is to help eligible individuals who cannot afford medical services, regardless of their age. Medicaid benefits can also be used to pay the deductible and coinsurance amounts for Medicare. Additionally, Medicaid provides federal matching funds to states for their medical public assistance plans.
Health insurance is the correct answer because it covers medical expenses related to injuries or illnesses. Breaking an ankle while roller-blading is a medical emergency that requires immediate attention, including a cast to immobilize the ankle and promote healing. Health insurance would typically cover the cost of the cast, as well as any other necessary medical treatments or procedures associated with the injury. Disability insurance, life insurance, and automobile insurance do not typically provide coverage for medical expenses related to injuries like a broken ankle.
