2 pages single spacedlast week ’ W r i t i n g

I’m stuck on a Business question and need an explanation.

Required:

You were so helpful with last week’s explanation of annuities (provided below for additional information) that Aunt Marie and Uncle Joe are now hoping you will help them with two more topics. Please respond to their questions – you should be able to do it in 1-1 ½ pages per topic (single spaced).

From Chapter 15: Recall that they are both 60 years old and still working. They have read about the expense of long term care and are confused about Long Term Care insurance. Offer them a concise summary of what is available with some ideas on options/features they may want to consider.

From Chapter 16: They both work for the same company. It offers (and pays much of the premium for) a managed care plan. They will have to choose the HMO, PPO, or POS plan. Help them understand the differences among those alternatives.

-Should be 2 pages single spaced

last week’s explanation of annuities:

Your Aunt Marie and Uncle Joe are both 60 years old. They are healthy and both have family histories of long lives. They plan to work until they reach full retirement age for Social Security. They have accumulated savings of $800,000 and expect to add another $200,000 before retirement. They would like to supplement their Social Security income by investing their savings. They have two grown children that are both financially secure – but Marie and Joe would like to leave the children and grandchildren something if possible, but not at the expense of their own financial security.

In 1 ½ to 2 pages (single spaced), explain to them the difference between a Deferred Annuity and a Variable Annuity. Recommend and explain any features or options they should consider. [Don’t worry about pricing and benefit levels – just stick to the basics.]