Residual disability benefits

Assignment Help Financial Management

Reference no: EM13969773

Jeff currently earns $3000 per month. He has an individual disability-income policy that will pay $2000 monthly if he is totally disabled. Disability is defined in terms of the worker's own occupation. The policy has a 30-day elimination period and also provides residual disability benefits. Benefits are payable until age 65.

a. If Jeff is severely injured in an auto accident and cannot work for four months, how much will he collect under his policy?

b. Assume Jeff returns to work but can only work part-time until he recovers completely. If he earns $1500 monthly, what is the amount, if any, that Jeff can collect under his policy? Explain your answer.

Reference no: EM13969773

Questions Cloud

What is it that the men see as trifles : Dramatic Irony. In Glaspell's play, what is it that the men see as "trifles"? What significance do the women find in these items? What importance do they have in the story?

Import of cultural products to promote their production : PIPA 1: Should countries impose barriers to hinder the import of cultural products or subsidies to promote their production and distribution

Shares of new stock : A firm currenlty has 20,000,000 shares with a price of 25 per share. they want to issue another 2,000,000 shares so they give each shareholder the right to buy .1 shares of new stock for 2.00 ( it will take ten rights to buy one new share for 20.0..

What is the value of warrant : Thomson engineering is issuing new 10 year bonds that have 20 warrants attached. If not for the attached warrants the bonds would carry a 9% interest rate. However with the warrents attached the bonds will pay a 7 % annaual coupon and still sell f..

Residual disability benefits : Jeff currently earns $3000 per month. He has an individual disability-income policy that will pay $2000 monthly if he is totally disabled. Disability is defined in terms of the worker's own occupation. The policy has a 30-day elimination period an..

Explanation about why the source is relevant to the paper : Description of the audience/type of information (scholarly/peer-reviewed, academic, trade, substantial, popular, etc.), discussion about purpose/bias/point of view

Current yield of malko enterprises : Malko Enterprises's bonds currently sell for $1,050. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,000. What is their current yield?

What role did race play in the fundamentalist orientation : Answering each question with minimum of 150 words. 1.What role did race play in the fundamentalist orientation of conservative Americans in the 1920s? 2.How did the Roosevelt administration design Social Security? 3.How did women's lives change duri..

Calculate the present value of this investment : 1. Cash flows from a new factory are expected to be $3,000,000 per year, every year for the next ten (10) years. If investor's use 6.25% as the discount rate, calculate the present value of this investment.

User Account

All Pages