Max and Sarah Smith are a married couple. They are both 30 years old and they have a 3 year old girl. Max is a loan officer and earns $55,000 a year. Sarah works as a retail store manager and earns $50,000 a year. Max's life expectancy is 80 years and Sarah's is 82. They plan on retiring when they are 65. There are three health insurance policies that they could choose from (see attached). Help Max and Sarah to determine which of the three plans to choose. They want to know 3which plan would be best if they estimate their medical costs at approximately $2,500 per year and which plan to use if they estimate their medical costs closer to $25,000 per year. Help the Smiths determine how much of their risk they should transfer and how much they should retain
(for example a higher deductible means they are retaining more risk).
(Hint 1: Find out which one provides sufficient coverage at a reasonable cost.)
Low Medical Expenses (~$2,500/year)
High Medial Expenses (~$25, 000/year)
Estimated Medical Cost:
FirstCare Bronze
FirstCare Gold
Blue Choice Gold
FirstCare Bronze
FirstCare Gold
Blue Choice Gold
Out of Pocket Expense:
Annual Premium: Cost:
$2,519.64
$3,255.12
$4,007.52
$2,519.64
$3,255.12
$4,007.52
Total Cost:
Which plan should they choose? And Why?

Northern lights electronics just completed plans to distribute its new tablet. the product has several unique features that differentiate it from competitor products. the marketing team plans to begin a roll-out with to only one traditional retailer for the first two months. this strategy will give consumers the perception of the product’s stand-out personality and increase demand. marketing will proceed with for the next four months, where it plans to distribute to three other retailers, as well. for the last six months of the year, it will initiate distribution agreements with discount retailers and online retailers, and any other electronics store that wants to carry it. the marketing team is confident that the tablet will cycle through the first three stages of its product life cycle quickly. as the tablet reaches maturity during the second half of its first year in the market, it is good strategy to proceed with as described above. intensive distribution; selective distribution; exclusive distribution exclusive distribution; selective distribution; intensive distribution tertiary level distribution; secondary level distribution; mono-level distribution mono-level distribution; secondary level distribution; tertiary level distribution