Disability Insurance

William has a personal disability policy with an own-occupation definition that provides a monthly benefit of $2,800 and has a 30-day elimination period . The policy was purchased from a local insurance company. This policy covers both accidents and sickness , is guaranteed renewable , and has a benefit of five years. His annual premium is $ 608.

Lucy has an own-occupation definition disability policy that provides an annual benefit of % of her gross pay and has a 90-day elimination period. The policy is provided through her employer . The policy covers both accidents and sickness and provides benefits until age 65. The annual premium is $ 460, and the employer and Lucy each pay half.

1) As a financial planner, Describe the current position of William and Lucy and applicable recommendations and good explanation for them