Chat with AI
PFIN 3rd Edition by Lawrence Gitman,Michael Joehnk,Randall Billingsley
Edition 3ISBN: 978-1285082578PFIN 3rd Edition by Lawrence Gitman,Michael Joehnk,Randall Billingsley
Edition 3ISBN: 978-1285082578 Exercise 4
Use Worksheet 9.2. Bruce Kaplan, a 35-year-old computer programmer, earns $72,000 a year. His monthly take-home pay is $3,750. His wife, Barbara, works part-time at their c hildren's elementary school but receives no benefits. Under state law, Bruce's employer contributes to a workers' compensation insurance fund that would provide $2,250 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 that he should consider, including possible provisions that he might want to include. What other factors should he take into account if he decides to purchase a policy?
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 that he should consider, including possible provisions that he might want to include. What other factors should he take into account if he decides to purchase a policy?
Explanation
Verified
Verified
a.
The estimated disability insurance n...
PFIN 3rd Edition by Lawrence Gitman,Michael Joehnk,Randall Billingsley
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
