Bob and Barbara Castle are each 39 years old and have sought your advice with regard to their financial affairs.Bob is a school administrator making $75,000 per year and Barbara is not employed outside of the home.The Castles' net worth is approximately $190,000.They have three kids ages,6,10,& 14.You have determined that the Castles currently have adequate life,health,auto,and homeowner's insurance.Which of the following forms of insurance is likely to fulfill their highest priority risk management need?
A) supplemental major medical insurance
B) disability income insurance
C) critical illness insurance
D) long-term care insurance
E) additional life insurance

Question

Quizplus · Accepted Answer

Since Barbara is not employed outside of the home, Bob's income is likely the main source of their financial stability. Therefore, the Castles' highest priority risk management need is likely to protect against the loss of Bob's income in the event of a disability. Disability income insurance can provide replacement income if Bob is unable to work due to a covered disability. This will help ensure the family can maintain their standard of living and meet financial obligations, even if Bob is unable to work.

Bob and Barbara Castle Are Each 39 Years Old and Have