In addition, Pierre purchased Medical Insurance for his trips to the US, as he knew that his provincial health insurance coverage for emergency medical costs outside the province only covered up to the rates in effect in Quebec. Since costs outside of Quebec are often much higher, having good coverage is critical. Pierre also has Disability Insurance through his employer where the monthly disability benefit amount would be 70% of his Pre-Disability Income at the time of a claim. He currently earns a gross annual salary of $90,000. If Pierre were to become disabled, he knows that the bills would continue to come in but not a salary. He takes comfort knowing that he could cover his mortgage and bills with the amount of a monthly disability benefit of:

a) $________________.

After working six (6) months, Pierre also managed to buy a small, one-bedroom condo. The bank that lent him the money for the mortgage, required Pierre to get home insurance which covered at least 80% of the replacement cost. Thankfully, Pierre had done so. His best friend, Sid who lived next door to him in the same condo was not as fortunate when their entire condo complex was hit by a fire. Sid had purchased his condo 3 years earlier with a replacement cost coverage of $160,000 (i.e. $200,000 x 80%). However, with the recent crazy cost in the housing market and the increased cost of materials for rebuilding, prices for replacing damaged property have increased. Sid never reviewed the replacement cost with his insurance company and did not maintain the 80% minimum coverage amount on his replacement cost policy. The replacement cost of Sids condo before the fire was $420,000, which means he should have had an insurance policy with replacement cost coverage of b) $________________________ but only maintained his policy coverage at $160,000 year after year. The fire in Sids condo was $98,000 in damage. The insurance company will pay c) $__________________ and Sid will need to pay d) $_________________ out of his own pocket.