Julie Rio has take-home pay of $1,720 per month and a disability insurance policy that replaces 60 percent of earnings after a 90-day (3-month) waiting period. She has accumulated 80 sick days at work. Julie was involved in an auto accident and was out of

work for four months. How much income did she lose, and how much would be replaced by her disability policy? How else could she replace her lost earnings? If after four months Julie could only return to work half-time for an additional three months due to

continuing physical therapy, how might she benefit from a residual benefits clause? How much will she receive in disability benefits for this period?

Before applying sick day benefits and disability income benefits, Julie would lose $ of income. (Round to the nearest dollar.)

The amount of income Julie's disability policy would replace is $ (Round to the nearest dollar.)

Some ways that she could replace her income include: (Select all the choices that apply.)

Short-term disability policy benefits, if available.

Workers' compensation, if she was injured on the job

"Sick days" especially if her employer allows her to accumulate them over time for use in a major medical emergency.

An emergency fund of 3 to 6 months of expenses.

If after four months Julie could only return to work half-time for an additional three months due to continuing physical therapy, how might she benefit from a residual benefits clause? How much will she receive in disability benefits for this period? (Select the

best choice below.)

O A. A residual benefits clause would reimburse Julie for the difference in the part-time and full-time earnings to the limits specified in her policy. For the three-month period of reduced employment, Julie would receive $516 per month, a total of $1,548

O B. A residual benefits clause would reimburse Julie for the lost pay during the time she returns to work at half her usual workload. For the three-month period of reduced employment, Julie would receive $860 per month, a total of $2,580.