Question
Allison and trevor are married and both work full time. Allisons annual income is 108,000 and trevors annual income is 84000. Both have disability insurance
Allison and trevor are married and both work full
time. Allisons annual income is 108,000 and trevors annual income is 84000. Both have disability insurance coverage; alison's disability benefit is 60% and trevors is 50% of his income.the couple estimates that should one of them become disabled they would need 9500 ped month to cover their living expenses. Also, should one of them become disabled, the other intends to work only half of their current schedule in order to spend more time to help at home.
will allison and trevor be able to achieve their goal by increasing their disability coverage?
a) no, they will not be able to work only half of their current schedule as they cannot increase their disability benefits, allison is maxed out and trevor may be able to only get 10% of his income as additional disability coverage
b) yes they can increase their disability benefits by 1500 per month for allison and 600 per month for trevor
c) yes they can achieve their goal by adding a benefit of 500 per month for trevor
d) yes their goals are already being met as new coversge is required for neither allison or trevor
24 Allison and Trevor are married and both work full-time. Allison's annual income is $108,000 and Trevor's annual income is $84,000. Both have disability insurance coverage; Allison's disability benefit is 60% of her income while Trevor's is 50% of his income. The couple estimates that should one of them become disabled, they would need $9,500 per month to cover their living expenses. Also, should one of them become disabled, the other intends to work only half of their current schedule in order to spend more time to help at home. Will Allison and Trevor be able to achieve this goal by increasing their disability coverage? a. O No, they will not be able to work only half of their current schedule as they cannot increase their disability benefits; Allison is maxed out and Trevor may be able to only get 10% of his income as additional disability coverage. b. O Yes, they can increase their disability benefits by $1,500 per month for Allison and $600 per month for Trevor. c. O Yes, they can achieve their goal by adding a benefit of $500 per month for Trevor. d. O Yes, their goals are already being met as new coverage is required for neither Allison nor TrevorStep by Step Solution
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