Kevin and Kathy have been married for 4 years and have a 1-year old boy, Kirk. Kevin has a passion for cars and hence works as a car mechanic for AAA Automobile Workshop Pte Ltd.He earns approximately $3,600 per month on a gross basis and takes home a net income of $2,880 per month after CPF contributions. As an employee of AAA Automobile Workshop Pte Ltd, Kevin and his family are entitled to receive the benefits provided by the company's group health insurance policy. In addition to major medical coverage, the policy provides a monthly disability income benefit amounting to 20% of the employee's average monthly take-home pay for the most recent 12 months prior to incurring the disability. (Note: Kevin's average monthly take-home pay for the most recent year is equal to his current monthly takehome pay). The disability income benefit is valid for as long as Kevin is severely disabled and for as long as the group health insurance policy is in place. As a Singaporean male aged above 40, Kevin has also enhanced his existing Eldershield400 scheme using his CPF Medisave savings to a private enhanced Eldershield plan that pays out $1,200 per month for a lifetime in the event of a severe disability.

Kathy works as a part-time retail assistant and earns about $1,600 per month on a gross basis and takes home about $1,280 per month by working at a fashion boutique near their home. The boutique gives her no other benefits other than the compulsory employer CPF contributions. Should Kevin become disabled, Kathy would continue to work. If she became disabled, she would not receive any disability income benefits. As Kathy is only aged 34, she is not eligible to join the CPF Eldershield scheme yet.

Kevin and Kathy are currently with Kevin's widowed mother and are staying in a 5-room HDB flat in Choa Chu Kang. Kevin and Kathy plan to purchase their own home in the next few years after Kirk is more independent. As both Kevin and Kathy are working, Kevin's mother is currently the primary caregiver to Kirk. As a car lover, Kevin owns a sports utility vehicle and has and outstanding car loan of $70,000. Savings for Kevin and Kathy have generally been low as they spend 90% of their combined take-home pay to meet their bills and provide for necessary items. They are only left with the remaining 10% to fulfil their entertainment and savings goals. To date, they only have a total savings of $30,000 and are not investing their savings as they feel that they do not have sufficient knowledge to make sound investment decisions.

Kevin's non-exclusive financial advisor is his army platoon mate, Terrence Toh, whom he recently got reacquainted with after having left the army more than 20 years ago. Since the re-acquaintance, Terrence calls and meets Kevin regularly over a cup of coffee to catch up. However, Kevin is generally quite turned off by Terrence's relatively pushy sales tactics. At each meet-up, Terrence would constantly be presenting financial products such as life insurance, endowment plans, child-education savings plans, retirement plans, and nagging at Kevin to start planning for the future. It seemed like Terrence was more interested in seeking every single opportunity to make a sale than taking a genuine interest in Kevin as his friend. Kevin generally dreads such meet-ups and sometimes wished that Terrence would stop calling him. Terrence, on the other hand, feels that he is persistent in reaching out to Kevin as he is deeply concerned for Kevin and well aware of the protection gaps for Kevin and his family. Both Kevin and Kathy each have a small whole life insurance policy with a sum assured of $25,000 only. Their CPF Medishield Life policies are also not enhanced. Both Kevin and Kathy are generally underinsured, partly due to their tight budget and growing family needs, partly due to a lack of financial knowledge, and also partly due to an incorrect thinking that young persons do not require insurance yet. They feel that insurance is only needed when large medical bills start to arise in old age. Looking into insurance products can wait and there are savings from not paying for insurance when it is not needed. As Kevin's company does offer him some insurance benefits, Kevin feels that he can meanwhile rely on his company's group insurance policies to assist him in the event of a dreaded peril.

Question: In the unfortunate event that Kevin becomes severely disabled, compute and appraise how much, if any, additional disability income insurance does Kevin require to ensure adequate protection against severe disability? You may assume that Kevin and Kathy require 90% of their combined take-home pay in order to meet their bills and provide for a variety of necessity items.