Ben West, a 35-year-old computer programmer, earns $72,000 a year. His monthly take-home pay is $3,750. His wife, Ashley, works part-time at their children's elementary school but receives no benefits. Under state law, Ashley's employer contributes to a workers' compensation insurance fund that would provide $2,250 per month for six months if Ben were disabled and unable to work.
a. Use Worksheet 9.2 to calculate Ben'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 Ben 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?