Adam and Heidi Larrsson were delighted when Adam landed a new job with a promotion and an increased salary, but disappointed to learn that he would not be eligible for group benefits for the first 90 days of his employment. As they approach the 90-day deadline, they are not sure if there will be enough time to handle all the decisions that they need to make regarding the group benefit options they have. The company offers a comprehensive package of supplementary medical insurance, life insurance (1.5 times salary at no premium charge), and disability insurance. An employee can choose how to spend the employer-provided premium dollars to purchase supplementary medical or disability insurance or additional life insurance. Fortunately,
Heidi has supplementary group medical insurance through her work. In the mix of premiums to be spent, how should Adam and Heidi rank Adam’s insurance needs? What factors would be important to consider? Name two to three factors of importance when purchasing disability insurance.