Prior to submitting this assignment, make sure you have completed the associated Learning Activities and Practices Exercises in the module.

This is the third Financial Planning Simulation Capstone Project installment as outlined in Module A located in the Learning Modules section. For this installment, it is assumed that you do not have employer-provided health insurance coverage. You therefore will need to purchase coverage, and you have decided to purchase long-term care and disability income insurance coverage.

You will complete this assignment based on the purpose, benefits available, and the cost of the appropriate level of health, long-term care, and disability income insurance coverage.

Respond to the following questions:

1. Health insurance coverage: Distinguish between different types of health insurance policies by addressing the following:
2. Describe the purpose of fee-for-service health policy and include one advantage and one disadvantage of this type of coverage.
3. Describe the purpose of an HMO health policy and include one advantage and one disadvantage of this type of coverage.
4. Describe the purpose of a PPO health policy and include one advantage and one disadvantage of this type of coverage.
5. Based on your understanding of health insurance policies from the above requirements, decide on the best coverage type (e.g. fee-for-service, HMO, PPO) and provide your rationale.
6. Select a health insurance policy based on the type identified in the previous requirement by visiting Healthcare.gov. Indicate the insurance company and plan name, estimated monthly premium, annual deductible, and estimated out of pocket maximum.
7. Long-term care insurance coverage:
8. Explain the type of coverage provided under this type of plan.
9. Justify the necessity of this type of plan for someone who already has health insurance. Is this actually duplicate coverage? If you were not required to purchase this coverage for this project, indicate if you would personally purchase this type of policy at some point in your life and provide your rationale.
10. Review the costs associated with long-term care by viewing the information provided by Genworth and New York Life. Summarize your findings and indicate an appropriate amount of daily coverage that you would like to obtain for your long-term care policy.
11. Obtain an estimate of the cost of this type of policy for the desired level of coverage determined in the previous requirement by visiting an online long-term care insurance calculator provided by Genworth or Mutual of Omaha. Indicate the company selected and the estimated premium. Note that if your current age is lower than the lowest age for purchasing the coverage, you can utilize the lowest age provided.
12. Disability income insurance coverage:
13. Explain the type of coverage provided under this type of plan. Since a person who is employed is covered under workers compensation insurance, indicate if they would need a disability income insurance policy and provide your rationale.
14. Describe how to determine the appropriate amount of disability income insurance coverage needed.
15. Assume that the appropriate amount of disability income insurance coverage that you will need is $4,000 per month for a five-year disability. Indicate the types of options that you would like for your policy. For example, do you want to be covered only if you have a total disability, or would you also like to be covered if you have a partial disability? If disabled, indicate how long that you would be willing to wait before being covered (e.g. 30, 60, 90, 180, or 365 days) and the reason for the selected time period. Summarize all of your preferences.
16. Using Exhibit 9.4 located in the textbook, determine the cost for your $4,000 per month benefit by multiplying the rate x 2 (since the table is based on $2,000 of monthly coverage).