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 crucial to the family's financial well-being. Disability income insurance provides income replacement if Bob were to become disabled and unable to work. This would ensure that the family's financial needs are met even if Bob can't work due to an illness or injury. Additionally, given that Bob is the main breadwinner of the family, it is important to prioritize income protection over other forms of insurance such as supplemental major medical insurance, critical illness insurance, long-term care insurance, or additional life insurance.

Bob and Barbara Castle Are Each 39 Years Old and Have