Julie Rios has take-home pay of $3,410 per month and a disability insurance poli

Question

Julie Rios has take-home pay of $3,410 per month and a disability insurance policy that replaces 60 percent of earnings after a 90-day (3-month) waiting period. She has accumulated 80 sick days at work. Julie was involved in an auto accident and was out of work for four months. How much income did she lose, and how much would be replaced by her disability policy? How else could she replace her lost earnings? If after four months Julie could only return to work half-time for an additional three months due to continuing physical therapy, how might she benefit from a residual benefits clause? How much will she receive in disability benefits for this period?

Question - Before applying sick day benefits and disability income benefits, Julie would lose $________of income.(Round to the nearest dollar.)

Explanation / Answer

Julie's income during disability period

monthly income* disability period in months = 3,410*4 = $13640

60% of $13640 = $8184/4 = $2046

Before applying sick day benefits and disability income benefits, Julie would lose $2046 of income.(Round to the nearest dollar.)

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