Question

a business offers its employees two options for health care coverage, plan x and plan y. plan x has a lower premium and a higher deductible than plan y. who should choose plan x for his or her health coverage?
jacques, who wants to limit his financial liability in case of a future health emergency, should choose plan x
charlie, who regularly visits his doctor to monitor a variety of different health issues, should choose plan x
madison, who rarely gets sick and wishes to retain as much of her income as possible each month, should choose plan x.
part of an insurance policy that guarantees that if an identified belonging is damaged or lost, the insurance company will replace it.
deductible
premium
asset protection
collateral
option 3

Explanation:

• For the first question: Plan X has a lower premium (monthly cost) but higher deductible (amount paid out - of - pocket before insurance kicks in). Madison, who rarely gets sick, would likely not reach the deductible often. By choosing Plan X, she pays less each month (lower premium) and retains more income. Jacques, who wants to limit financial liability in an emergency, should choose a plan with lower deductible (Plan Y). Charlie, who has regular doctor visits, would likely have to pay more out - of - pocket with Plan X's higher deductible.
• For the second question:
• A deductible is the amount you pay before insurance pays.
• A premium is the amount you pay for insurance coverage (usually monthly).
• Asset protection in insurance terms (as described in the question) is when the insurance company replaces a damaged or lost belonging.
• Collateral is something pledged as security for a loan.

Answer:

• First question: Madison, who rarely gets sick and wishes to retain as much of her income as possible each month, should choose Plan X.
• Second question: asset protection.