a What is the level of Jim s short term one year disability
(a) What is the level of Jim’s short-term, one-year disability insurance needs?
(b) What is the level of Jim’s long-term disability insurance needs?
(c) Help Jim select from among the important disability insurance policy provisions to design a disability insurance program tailored to his needs.

Charles Napier of Indiana, Pennsylvania, recently took a new job as a manufacturer’s representative for an aluminum castings company. While looking over his employee benefits materials, he discovered that his employer would provide 10 sick days per year, and he can accumulate these to a maximum of 60 sick days if any go unused in a given year. In addition, Charles’s employer provides a $1000-per-month, short-term, one-year total disability policy. When he called the employee benefits office, Charles found that he might qualify for $500 per month in Social Security disability benefits if he became unable to work. Charles earns a base salary of $2000 per month and expects to earn about that same amount in commissions, for an average after-tax income of $3100 per month. After considering this information, Charles became understandably concerned that a disability might destroy his financial future.

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