Case 4 The Johnsons Consider Buying Disability Insurance

(a) Use the Run the Numbers Worksheet on page 331 to determine how much disability insurance Harry and Belinda each need. Use the December salary fi gures from Table 3.8 on page 90. To determine the amount of taxes and Social Security paid by each, assume that Harry, whose salary represents approximately 42 percent of their total income, paid a comparable percentage of the taxes.