Mason is a quantity surveyor with his own business. He has an income of $300,000. His personal (not business) expenses, including mortgage repayments, amount to $80,000. Mason is in good health, aged 55. In effecting an income protection policy, the insurer will limit the cover to 75% of income.

a. What benefit level would you suggest Mason take?

b. What benefit period would you suggest be taken?

c. What waiting period would you suggest?

d. Advise Mason of the advantages and disadvantages of level and stepped premiums