Question

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?

Answer 1

Disability benefits= $7,040

Step-by-step 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