PFIN Online, 1 term (6 months) Printed Access Card for Billingsley/Gitman/Joehnk's PFIN 6
6th Edition
ISBN: 9781337118026
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 9, Problem 7FPE
a)
Summary Introduction
To discuss: The disability insurance requirements of person X.
a)
Summary Introduction
To discuss: The advises for person F regarding disability insurance requirements, size and kind of disability insurance coverage and other factors considered to buy a policy.
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Lorenzo Ricci, a 38-year-old computer programmer, earns $85,000 a year. His monthly take-home pay is $5,250. His wife, Siena, works part-time at their children's elementary school but receives no benefits. Under state law, Lorenzo’s employer contributes to a workers' compensation insurance fund that would provide $1,400 per month for six months if he were disabled and unable to work. Calculate Lorenzo’s disability insurance needs assuming that he won't qualify for Medicare under his Social Security benefits. Round your answer to the nearest whole.
___________________________.
Based on your answer, what would you advise Lorenzo about his need for additional disability income insurance? Discuss the type and size of disability income insurance coverage that he should consider, including possible provisions that he might want to include. What other factors should he take into account if he decides to purchase a policy?…
Asher Perkins, a 35-year-old computer programmer, earns $94,000 a year. His monthly take-home pay is $4,950. His wife, Ellie, works part-time at their children's elementary school but receives no benefits. Under state law, Ellie's employer contributes to a workers' compensation insurance fund that would provide $1,500 per month for six months if Asher were disabled and unable to work.
Calculate Asher's disability insurance needs, assuming that he won't qualify for Medicare under his Social Security benefits. Round your answer to the nearest whole.
$
Based on your answer in part a, what would you advise Asher about his need for additional disability income insurance? Discuss the type and size of disability income insurance coverage he should consider, including possible provisions he might want to include. What other factors should he take into account if he decides to purchase a policy?
Steven takes a full-time position that pays an hourly wage of $32. The job assumes that he will work five 8-hour days a week. The government takes out 6.2% for Social Security, 1.45% for Medicare, and 15% for Federal income tax. Steven will have $80 taken out for health insurance and 6% of his after-tax monthly income taken out for retirement.
GAI _________________
GMI _________________
ATM _________________
Total Expenses ________________
Net __________________
Chapter 9 Solutions
PFIN Online, 1 term (6 months) Printed Access Card for Billingsley/Gitman/Joehnk's PFIN 6
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