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.

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Namels) Date 1. Estimate current monthly take-home pay 2. Estimate existing monthly benefits a. Social Security benefits b Other government program benefits a. Company disability bonefits d. Group disability policy benefits 3. Total existing monthly disability benefits (23+2b2c 2d 4. Estimated monthly disability benefits needed (111-131)