Bruce Kaplan, a 35-year-old computer programmer, earns $72,000 a year. His monthly take-home pay is S3,750. His
Question:
Bruce Kaplan, a 35-year-old computer programmer, earns $72,000 a year. His monthly take-home pay is S3,750. His wife, Barbara, works part-time at their children's elementary school but receives no benefits. Under state law, Barbara's employer contributes to a workers' compensation insurance fund that would provide S.2.0 per month for six months if Bruce were disabled and unable to work.
a. Use Worksheet 9.2 to calculate Bruce's disability insurance needs, assuming that he won't qualify for Medicare under his Social Security benefits.
b. Based on your answer in part a, what would you advise Bruce about his need for additional disability income insurance? Discuss the type and size of disability income insurance coverage he should consider, including possible provisions he might want to include. What other factors should he take into account if he decides to purchase a policy? REFERENCE:
Worksheet 9.2 Estimating Disability income insurance Needs
Using a work like makes the job of estimating disability benefit insurance needs a lot easier.
Step by Step Answer:
Personal Financial Planning
ISBN: 978-1111971632
13th edition
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley