Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Petru, a stationary equipment operator, has a group insurance policy that would pay him $3300 per month on his $65,000 annual salary in the event
Petru, a stationary equipment operator, has a group insurance policy that would pay him $3300 per month on his $65,000 annual salary in the event of a disability. When his twir turned three, Petru found a second job, which he has held for the last two years, so that his wife Camelia could remain at home. He earns $30,000 a year from his second job. His income is taxed at a rate of 28%. When they meet with their life insurance agent. Camelia explains that she is worried that they will not have enough money if Petru becomes disabled, as he does not have group insurance with his second job. What should their agent recommend? a) That they purchase an individual policy with monthly coverage of $1,100. b) That they purchase an individual policy with monthly coverage of $1,500. c) That they purchase an individual policy with monthly coverage of $3.700 and withdraw from the group insurance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started