insurance project

Insurance project - Hardy Insurance Case Disability insurance Nancy has a long-term disability through her employer with a liberal own occupation

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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. A good policy should offer “own-occupation coverage” to age 65 rather than “any
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This note was uploaded on 09/22/2010 for the course FIN 3055 at Virginia Tech.

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Insurance project - Hardy Insurance Case Disability insurance Nancy has a long-term disability through her employer with a liberal own occupation

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