Question

Christine's total monthly expenses typically amount to $1,800. About $50 of these expenses are work related. Her employer provides disability insurance coverage of $600 per month. How much individual disability insurance should Christine purchase?

Answer 1

Answer:

She should purchase a disability insurance if $1,150

Explanation:

To calculate the amount of individual disability insurance she should purchase, we use the mathematical equation below;

Required amount of disability insurance = Monthly income - work related expenses- Employer’s contribution

From the question

Monthly income = $1800

Work related expenses = $50

Employer’s contribution = $600

Substituting these values, we have;

1800-50-600 = $1,150