Project 7-Risk Management Instructions: Please complete this assignment and submit though Blackboard. You may consult with the classmates/instructor at any time. Please be very thoughtful when you explain your decisions. Please show your work and your thought process. Scenario Eduardo and Lucia Ricardo are a married couple. They are both 39 years old and they have a son (17 years old) and a daughter (14 years old). Eduardo is an engineer and earns $95,000 a year. Lucia is a school teacher and earns $30,000 a year. Eduardo's life expectancy is 80 years and Lucia's is 82. They plan on retiring when they are 67 The Ricardos want your help determining how much risk they should transfer (insure), and how much they should retain (remember that a higher deductible, shorter term, longer waiting period, etc., means they are retaining more risk, so they will pay a lower premium). Informotion about policy costs can be found in the appendix at the end of the document Part A - Health Insurance (Show your work in Part E) 1. The Ricardos have three health insurance policies to choose from. Help them determine which plan to choose. They want to know which plan would be best if they estimate their medical costs at approximately $4,000 per year and which plan to use if they estimate their medical costs closer to 535,000 per year (Hint 1: Find out which one provides sufficient coveroge ot a reasonable cost.) First Care Blue Choice First Care Bronze First Care First Care Blue Choice Plan Name: Estimated Medical Cost Out of Pocket Expense Annual Premium Bronze Gold Gold Gold Gold Lower Medical Expenses($4,000/year)High Medial Expenses ($35,000/year) Total Cost ? Which plan should they choose? Why? 2. Based on your own situation, which plan would be best for you (based on your family, history lifestyle, etc.)? Why? Project 7-Risk Management Instructions: Please complete this assignment and submit though Blackboard. You may consult with the classmates/instructor at any time. Please be very thoughtful when you explain your decisions. Please show your work and your thought process. Scenario Eduardo and Lucia Ricardo are a married couple. They are both 39 years old and they have a son (17 years old) and a daughter (14 years old). Eduardo is an engineer and earns $95,000 a year. Lucia is a school teacher and earns $30,000 a year. Eduardo's life expectancy is 80 years and Lucia's is 82. They plan on retiring when they are 67 The Ricardos want your help determining how much risk they should transfer (insure), and how much they should retain (remember that a higher deductible, shorter term, longer waiting period, etc., means they are retaining more risk, so they will pay a lower premium). Informotion about policy costs can be found in the appendix at the end of the document Part A - Health Insurance (Show your work in Part E) 1. The Ricardos have three health insurance policies to choose from. Help them determine which plan to choose. They want to know which plan would be best if they estimate their medical costs at approximately $4,000 per year and which plan to use if they estimate their medical costs closer to 535,000 per year (Hint 1: Find out which one provides sufficient coveroge ot a reasonable cost.) First Care Blue Choice First Care Bronze First Care First Care Blue Choice Plan Name: Estimated Medical Cost Out of Pocket Expense Annual Premium Bronze Gold Gold Gold Gold Lower Medical Expenses($4,000/year)High Medial Expenses ($35,000/year) Total Cost ? Which plan should they choose? Why? 2. Based on your own situation, which plan would be best for you (based on your family, history lifestyle, etc.)? Why