Question

Your friend Brian just graduated from medical school. He is excited to begin his new career but is worried about how he will be able to pay back his nearly $150000 in student loans if he were to become disabled. You have recommended a long-term own-occupation disability policy. Approximately how much will Brian pay per month in premiums for this type of policy if the monthly benefit is $6800

Answer 1

Answer:

$204

Explanation:

Monthly benefit = $6800

Monthly premium = monthly benefit * 3%

                             = 6800 * 3%  = $204  

Brian just graduated from school.

and under own occupation disability policy ranges between 1% to 3%.

since Brian is worried about his ability to pay back his student loan if he gets disabled we will assume that Brian has a higher risk to injury therefore he will most likely contribute more to his premium which ≈ $204