David and Sofia, what are the four most important recommendations you have for them? You must provide two or three sentence justifications for each recommendation.

INSURANCE INFORMATION

Health Insurance

The entire family is insured under Sofia$$s plan, which is a major medical plan with a $$1,000$ per person deductible, an $80/20$ coinsurance clause, and a family maximum out$-$of$-$pocket limit of $$5,000.$ Sofia pays $$500$ per month for the coverage, the rest of the premium is covered by the university. Dental is paid for fully by the university.

Life Insurance

David has a term life insurance policy with a death benefit of $$200,000.$ The policy beneficiary is Sofia. The premium is $$400$ annually, $($paid by David personally, not through his business$).$ Sofia has a group term life insurance policy for two times salary provided by the university $($the current death benefit is $$204,000).$ The policy beneficiary is David. The premium is paid by the university. The Section $79$ table cost per $$1,000$ of protection is $$0\mathrm{.}10$ per month for Sofia$$s age.

Disability Insurance

Sofia has a disability policy through work. The policy has a $60\%$ of salary benefit with a $30$ day elimination period. For the first two years, the policy has an own$-$occupation definition of disability. Thereafter, it has a modified any occupation definition. The benefit period continues until FRA as defined by the Social Security Administration. The premium is paid by the university. David does not have a disability income insurance policy.

Homeowners Insurance

The Suarezes have an HO$-5$ policy with a dwelling extension and replacement cost on contents. The policy has a $$1,000$ deductible. The annual premium is $$2,800.$ Coverage A $($dwelling$)$ is $$418,000.$ Personal property coverage is $$220,000.$ Personal liability coverage is $$500,000.$

Automobile Insurance

The Suarezes have automobile liability and bodily injury coverage of $$100,000/$$$300,000/$$$100,000.$ They have both comprehensive coverage $($other than collision$)$ and collision coverage. The deductibles are $$500($comprehensive$)$ and $$1,000($collision$).$ The annual premium is $$2,300.$

Business Insurance

David has a business owner$$s policy $($BOP$)$ for Playful Paws. The policy has been in place for five years. To date, there have been no claims.