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,and 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 remaining 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 currently employed, the Castles' highest-priority remaining risk-management need is disability income insurance in case Bob becomes unable to work due to an injury or illness. This will provide them with a steady stream of income to cover their expenses and maintain their current lifestyle. The other forms of insurance listed are not as high of a priority for the Castles at this time.

Bob and Barbara Castle Are Each 39 Years Old and Have