Steve currently has an own occupation disability insurance, which pays $3000 per month with an elimination period of 180 days.

(6 months). Steve has just received a raise and his income is $7000 per month. The recommended disability insurance is 65% to 75% of income. Based on this information and the following table, what is your recommendation Steve and Charlene and why. Inaddition, why is it 65% to 75% and not 100%? Show any calculations.

Disability Insurance: Hypothetical disability insurance monthly premiums for each $1000 of benefit using G/R, own occupation for first 5 years, any occupation to age 65. The assumed elimination period is 180 days:

Age 25 30 32 35 40 45 50 55 60 65 Rate per $1,000 $1.00 $1.02 $1.10 $1.20 $1.37 $1.55 $1.83 $2.18 $2.58 $3.08