Reference no: EM132952572

The Brocks are assessing their health insurance coverage. Since Josh's current employer offers him only 30 days of sick leave, they need to consider this factor when assessing disability insurance plans.

Life Situation         Financial Data
Pam, 36                        Monthly income $4,300
Josh, 38                       Living expenses $4,075
3 Children, ages 9, 7 and 4    Assets $50,850
Liabilities $99,520

• Since Pam's work activities have varied, the family is dependent on Josh's health insurance. In recent weeks, his company is considering several types of plans. These alternatives include traditional health insurance programs and HMOs, with a wide variety of coverage and cost differences.
• Both Pam and Josh Brock are pleased with their lives and various family activities. They now have three children, are enjoying their home, and are more financially secure than six years ago. Yet the Brocks still have financial needs they must address.
• Several changes have affected their financial planning. The value of their home has increased due to inflation and home improvements. They have purchased a used car to meet additional transportation needs. These situations must be considered in relation to insurance needs for the Brock household.

Problem 1: When considering disability income insurance, what length of waiting period and duration of benefits should the Brocks consider?