Tom Purchased Disability Insurance That Will Provide $1400 Per Month

question 85

Multiple Choice

Tom purchased disability insurance that will provide $1400 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 $2500 and Tom is anticipating no additional disability benefits from any other source, what is Tom estimating as his work-related monthly expenditures?

• A)Tom will be paying a total of $500 in income tax, lunches at work, and employment transportation.
• B)Tom will be paying a total of $500 in RRSP contributions, income tax, and gas and oil.
• C)Tom is calculating his work-related expenses to be the $600 employer benefit.
• D)Tom's work-related expenses are $400.

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Definitions:

Motivators

Factors that drive individuals to perform actions or pursue goals, often related to fulfilling needs or achieving aspirations.

Physiological Needs

Fundamental physical requirements for human survival, such as food, water, shelter, and sleep, considered as the base of Maslow's hierarchy of needs.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow in his 1943 paper, detailing a five-tier model of human needs, from basic (physiological) to advanced (self-actualization).

Leadership

The act of guiding or influencing a group towards the achievement of goals, involving vision, inspiration, and direction.