Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 9, Problem 7FPE
Lorenzo Ricci, a 38-year-old computer programmer, earns $96,000 a year. His monthly take-home pay is $4,800. His wife, Siena, works part-time at their children’s elementary school but receives no benefits. Under state law, Lorenzo’s 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 Lorenzo’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 Lorenzo 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?
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Lorenzo Ricci, a 38-year-old computer programmer, earns $85,000 a year. His monthly take-home pay is $5,250. His wife, Siena, works part-time at their children's elementary school but receives no benefits. Under state law, Lorenzo’s employer contributes to a workers' compensation insurance fund that would provide $1,400 per month for six months if he were disabled and unable to work. Calculate Lorenzo’s disability insurance needs assuming that he won't qualify for Medicare under his Social Security benefits. Round your answer to the nearest whole.
___________________________.
Based on your answer, what would you advise Lorenzo 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?…
Asher Perkins, a 35-year-old computer programmer, earns $94,000 a year. His monthly take-home pay is $4,950. His wife, Ellie, works part-time at their children's elementary school but receives no benefits. Under state law, Ellie's employer contributes to a workers' compensation insurance fund that would provide $1,500 per month for six months if Asher were disabled and unable to work.
Calculate Asher's disability insurance needs, assuming that he won't qualify for Medicare under his Social Security benefits. Round your answer to the nearest whole.
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Based on your answer in part a, what would you advise Asher 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?
Rodger Santos, a 35-year-old computer programmer, earns ₱3,600,000.00 a year. His monthly take-home pay is ₱187,500.00. His wife, Maria, works part-time at their city SUC but receives no benefits. Under the law, Rodger’s employer contributes to a worker’s compensation insurance fund that would provide ₱112,500.00 for 6 months if Rodger were disabled and unable to work.
Use a worksheet to calculate Rodger’s disability insurance needs assuming that he won’t qualify for Medicare under his social security (SSS) benefits.
Based on your answer in letter a, what would you advise Rodger 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?
Chapter 9 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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