Juan Espinoza and his wife, Isabel, have been married for 2 years and have a 1-year-old son. They live in Chicago, where Juan works for Mechanical Solutions Company. He earns $3,200 per month, of which he takes home $2,300. As an employee of Mechanical Solutions, he and his family are entitled to receive the benefits provided by the company’s group health insurance policy. In addition to major medical coverage, the policy provides a monthly disability income benefit amounting to 20% of the employee’s average monthly take-home pay for the most recent 12 months prior to incurring the disability. (Note: Juan’s average monthly take-home pay for the most recent year is equal to his current monthly take-home pay.) In case of complete disability, Juan would also be eligible for Social Security payments of $700 per month. Isabel is also employed. She earns $700 per month after taxes by working part-time at a nearby grocery store. The store gives her no benefits other than Social Security. Should Juan become disabled, Isabel would continue to work at her part-time job. If she became disabled, Social Security would provide monthly income of $300. Juan and Isabel spend 90% of their combined take-home pay to meet their bills and provide for a variety of necessary items. They use the remaining 10% to fulfill their entertainment and savings goals. Critical Thinking Questions 1. How much, if any, additional disability income insurance does Juan require to ensure adequate protection against his becoming completely disabled? Use Worksheet 9.2 to assess his needs. 2. Does Isabel need any disability income coverage? Explain. 3. What specific recommendations regarding disability income insurance would you give Juan and Isabel to provide adequate protection for themselves and their child?

 

Forum Topic Responses: One comprehensive forum topic response is assigned weekly. Students are required to select and research one of the forum topics listed below using a minimum of 3 reference sources in addition to the textbook and then write a 1,000-word or more response to the forum topic. APA format is required. Also submit your forum topic response to Turnitin.

 

Comprehensive forum topic response contributions will be critically graded on the thought quality of the response, work effort, research, APA format, and analysis.

 

 

 

REMEMBER TO:

 

Use APA format – title page, running head, citations (MUST HAVE), references

 

Do not plagiarize. Quote, paraphrase or summarize the data that you take from a source. Include a citation. Plagiarism will result in a serious loss of points.

 

Make sure your paper (the text) is 1,000 words or more.

 

Do not use Wikipedia or Investopedia or any ~pedia sources. The text may be used but will not count toward the required 3 sources.

 

 

 

Select one of the following forum topics to research and write about.

 

Forum Topics – Chapter 6:  Risk, Return, and the Capital Asset Pricing Model: (Choose one)

 

-Investment Risk

 

-Beta

 

-Risk vs Return

 

-The CAPM Approach

 

Week 2 questions due in 8 hours – 5 questions total

 

week 3 due by tuesday at 12:00pm arizona USA time

the work is attached in word Document