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PFIN 5th Edition by Randall Billingsley,Lawrence Gitman,Michael Joehnk
Edition 5ISBN: 978-1305661707PFIN 5th Edition by Randall Billingsley,Lawrence Gitman,Michael Joehnk
Edition 5ISBN: 978-1305661707 Exercise 5
Calculating need for disability income insurance. Use Worksheet 9.2. Andre Arreola, a 35-year-old computer programmer, earns $76,000 a year. His monthly take-home pay is $3,800. His wife, Justine, works part-time at their children's elementary school but receives no benefits. Under state law, Andre employer contributes to a workers' compensation insurance fund that would provide $2,250 per month for six months if he were disabled and unable to work.
a. Use Worksheet 9.2 to calculate Andre'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 Andre 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 Andre'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 Andre 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
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Disability income insurance is the insur...
PFIN 5th Edition by Randall Billingsley,Lawrence Gitman,Michael Joehnk
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