ws9.2

Valeria and Matias Rivera have been married for two years and have a 1-year old son. They live in Richmond, Virginia, where Matias works for software Solutions. He earns $5,400 per month, of which he takes home $4,100. Matias 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 15 percent of the employee's average monthly take home pay for the most recent 12 months prior to incurring the disability. (Note: Matias' average monthly take-home pay for the most recent year is equal to his current monthly take home pay.) In case of complete disability, Matias would also be eligible for Social Security payments of $1,100 per month Valeria is also employed. She earns $1,300 per month after taxes by working part-time at a nearby grocery store. As a part-time employee, the store gives har no benefits Should Matias become disabled, Valeria would continue to work at her part-time job. If she became disabled, Social Security would provide monthly income of $700. Vaieria and Matias spend 90 percent of their combined take home pay to meet their bills and provide for a variety of necessary items. They use the remaining 10 percent to their entertainment and savings goals, 1. How much, if any, additional disability Income Insurance does the Rivera family require to ensure adequate protection against Matias becoming completely disabled Use Worksheet 9.2 to assess his needs. Assume that Matias and Valeria would like to have 100% of their combined take-home pay, $ 2. Does Valeria need any disability Income coverage? Assume that Matias and Valeria need 90% of their combined take-home pay in order to meet their bits and provide for a variety of necessity items o LG Paste Merge & Center BIU A B4 fx G H D 8 DISABILITY BENEFIT NEEDS Date 1 2 4 Name(s) 7 1. 9 2. 11 13 Estimate current monthly take home pay Estimate existing monthly benefits a. Social Security benefits b. Other government program benefits c. Company disability benefits d. Group disability policy benefits Total existing monthly disability benefits (2a+2b+2c +2d) Estimated monthly disability benefits needed ([1]-3]) 15 17 19 3. 4 4. NNN 21 22 23 24