Calculating need for disability income insurance. Use Worksheet 9.2. Asher Perkins, a 35-year-old computer programmer, earns $96,000 a year. His monthly take-home pay is $4,800. His wife, Ellie, works part-time at their childrens elementary school but receives no benefits. Under state law, Ellies employer contributes to a workers compensation insurance fund that would provide $2,250 per month for six months if Asher were disabled and unable to work.

a) Use Worksheet 9.2 to calculate Ashers disability insurance needs, assuming that he wont qualify for Medicare under his Social Security benefits.

b) 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?

Worksheet 9.1
DISABILITY BENEFIT NEEDS
Name(s)		Date
1.	Estimate current monthly take-home pay			$
2.	Estimate existing monthly benefits:
	a. Social Security benefits	$
	b. Other government program benefits
	c. Company disability benefits
	d. Group disability policy benefits
3.	Total existing monthly disability benefits (2a + 2b + 2c + 2d)	$ -
4.	Estimated monthly disability benefits needed ([1][3])	$ -