Hardy Insurance Case
Disability insurance
Nancy has a long-term disability through her employer with a liberal “own
occupation” definition of disability.
This benefit will provide 60% of her
income replacement after a 6-month elimination period.
Currently the
Hardy’s pay no premiums for this coverage and if they felt the need to
purchase a supplement to increase this coverage from 10% for added security
this would add premiums into their budget.
Jim currently has no disability insurance.
Since Jim’s salary is a large
contribution to their finances, protecting this income in the event that Jim is
injured is advisable. Jim would need to make a few choices about the type of
disability insurance as well. Since their finances allow for an emergency fund
purchasing short-term disability, which usually pays benefits for around 6
months, would not be advisable. Long-term insurance, with a 6-month
elimination period, is recommended.
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- '08
- CGiles
- Jim, 6-month elimination period
-
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