Tom purchased disability insurance that will provide $1,400 per month in benefits. His employer carries a disability policy on Tom that will provide an additional $600 per month in benefits. If Tom's monthly budget is $2,500 and Tom is anticipating no additional disability benefits from any other source, what is Tom estimating as his work-related monthly expenditures.

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Quizplus · Accepted Answer

Tom's total disability benefits amount to $2,000 ($1,400 + $600). Since his monthly budget is $2,500 and he expects no other benefits, the difference of $500 ($2,500 - $2,000) is what he estimates as his work-related monthly expenditures.

Tom Purchased Disability Insurance That Will Provide $1,400 Per Month