OCS Financial Management Class, NCVPS, Unit 6

1. Calculating Disability
Insurance
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2. What is disability insurance?
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Insurance that
replaces a portion of
the person’s income if
they are unable to
work due to illness or
injury.

3. Example:
Rhonda is a cake decorator, and has a broken
arm.
She will be out of work for two months.
Her monthly pay is $1500.
Her insurance company will give her 60% of
her monthly pay.
How much disability insurance will Rhonda
receive for two months?

4. Step by Step:
Step 1: Change the percent to a decimal.
60% = .60
Step 2: Multiply the decimal by regular monthly pay.
.6 x 1500 = $900
Step 3: Multiply the one month total by the number of
months out of work.
900 x 2 = $1800
Rhonda will receive $1800 from her disability insurance
company while she is out of work for two months.
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5. Your turn:
Evan is a construction worker who is having
knee surgery. He will be out of work for
three months. His regular monthly pay is
$3500 per month. His disability insurance
company will pay 60% of Evan’s regular pay.
How much money will he receive while he is
out of work?

6. Did you follow the steps to calculate Evan’s
disability insurance pay?
Evan will be paid $6300 while he is recovering.
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