Georgia, a widow, has take-home pay of $1,600 a week. Her disability insurance coverage replaces 55 percent of her earnings after a four-week waiting period. What amount would she receive in disability benefits if an illness kept Georgia from work for 12 weeks?

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Business

Julie Hutchinson

1 October, 15:45

Georgia, a widow, has take-home pay of $1,600 a week. Her disability insurance coverage replaces 55 percent of her earnings after a four-week waiting period. What amount would she receive in disability benefits if an illness kept Georgia from work for 12 weeks?

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Answers (1)

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Enrique Krueger · Answer 1

Disability benefits = $7,040

Explanation:

Disability insurance is one that covers the employee in case of unavoidable time away from work. The reason from staying off work may be due to illness.

Disability benefits = Benefits for a week * weeks covered by insurance

Disability benefits = (Insurance percent cover * Take home) * (weeks off - waiting period)

Disability benefits = (0.55 * 1,600) * (12 - 4)

Disability benefits = 880 * 8 = $7,040