Health Insurance
Which metal has the highest monthly premiums?
Platinum
What are the two main types of life insurance?
Whole and term
An insurance company sells 12,000 identical life insurance policies.
Each policy has:
Probability of death: 0.001
Death benefit: $400,000
Annual premium: $600
What the expected payout per policyholder?
$400
How much does Kal-El have to spend on healthcare before Health net starts contributing to the costs?
$4800
Give an example of an HMO health insurance.
Kaiser
Why do people buy life insurance?
to protect their family financially
An insurance company sells 12,000 identical life insurance policies.
Each policy has:
Probability of death: 0.001
Death benefit: $400,000
Annual premium: $600
How many policyholders does the company expect to die this year?
12 people
How much will Kal-El pay per year (in premiums) for Kaiser Platinum?
$6724.20
Which type of health insurance plan requires to you to see your primary care doctor for a referral to a specialist?
HMO
Which type of life insurance builds cash value, meaning there is a savings component to the plan?
Whole
An insurance company sells 12,000 identical life insurance policies.
Each policy has:
Probability of death: 0.001
Death benefit: $400,000
Annual premium: $600
How much does the company expect to profit from each policyholder, on average?
$200
How much will a $11,000 outpatient surgery cost him if Kal-El has Kaiser Platinum?
$115
What is the most you will have to pay for health care, per year, called?
Out of pocket maximum
If you buy a 20-year, $500,000 term life insurance policy when you are 35 years old, and you live to be 75 years old, what will the death benefit be?
$0
An insurance company sells 12,000 identical life insurance policies.
Each policy has:
Probability of death: 0.001
Death benefit: $400,000
Annual premium: $600
How much does the company collect in premiums this year?
$7.2 million
How much will an $11,000 outpatient surgery cost him if Kal-El has Health net Bronze? Assume this is his only health expense this year.
$6970
coinsurance
Sam has a whole life insurance policy and dies. Who will get the death benefit?
the beneficiary
An insurance company sells 12,000 identical life insurance policies.
Each policy has:
Probability of death: 0.001
Death benefit: $400,000
Annual premium: $600
What is the company's expected profit, in total?
$2.4 million
How close will Kal-El be to hitting his out-of-pocket maximum after his surgery, with Health net bronze?
$330