Questions from Personal Finance

Q: Colton Gentry of Lancaster, California, has owned his home for

Colton Gentry of Lancaster, California, has owned his home for ten years. When he purchased it for $178,000, Colton bought a $160,000 homeowner’s insurance policy. He still owns that policy, even thou...

Q: Ashley Diamond of Estes Park, Colorado, drives an eight-

Ashley Diamond of Estes Park, Colorado, drives an eight-year-old Toyota valued at $5,600. She has a $75,000 personal automobile policy with $10,000 per-person medical payments coverage and both collis...

Q: Social Security Disability Protection. Sandra Hilton of Sisseton, South Dakota

Social Security Disability Protection. Sandra Hilton of Sisseton, South Dakota, age 60, recently was in a vehicle accident, was hospitalized, and then suffered a heart attack. She took a leave of abse...

Q: Michael Howitt of Berkley, Michigan, recently had his gallbladder removed

Michael Howitt of Berkley, Michigan, recently had his gallbladder removed. His total bill for this surgery, which was his only health care expense for the year, came to $13,890. His health insurance p...

Q: Christina Haley of Elko, Nevada, age 57, recently suffered

Christina Haley of Elko, Nevada, age 57, recently suffered a stroke. She was in intensive care for 3 days and was hospitalized for 10 more days. Her total bill for this care was $125,500. After being...

Q: You have been talking at a party to some friends about insurance

You have been talking at a party to some friends about insurance. One young married couple in the group believes that insurance is almost always a real waste of money. They argue, “The odds of most ba...

Q: Amy and Mack Holly from Rapid City, South Dakota, have

Amy and Mack Holly from Rapid City, South Dakota, have been married for three years. They recently bought a home costing $212,000 using a $190,000 mortgage. They have no other debts. Mack earns $62,00...

Q: Matthew Kennedy of Urbana, Ohio, is single and has been

Matthew Kennedy of Urbana, Ohio, is single and has been working as an admissions counselor at a university for five years. Matthew owns a home valued at $250,000 on which he owes $135,000. He has a tw...

Q: Alexandra Cunningham of Gardner, Massachusetts, has a $100,

Alexandra Cunningham of Gardner, Massachusetts, has a $100,000 participating cash-value policy written on her life. The policy has accumulated $4,700 in cash value; Alexandra has borrowed $3,000 of th...

Q: Sheldon Cooper and Amy Fowler are married and live in Pasadena,

Sheldon Cooper and Amy Fowler are married and live in Pasadena, California. They have as a new investment goal to create a college fund for their newborn daughter. They estimate that they will need $2...