Juan Espinoza and his wife, Isabel, have been married for 2 years and have a 1-year-old son. They live in Chicago, where Juan works for Mechanical Solutions Company. He earns $3,200 per month, of which he takes home $2,300. As an employee of Mechanical Solutions, he and his family are entitled to receive the benefits provided by the company’s group health insurance policy. In addition to major medical coverage, the policy provides a monthly disability income benefit amounting to 20% of the employee’s average monthly take-home pay for the most recent 12 months prior to incurring the disability. (Note: Juan’s average monthly take-home pay for the most recent year is equal to his current monthly take-home pay.) In case of complete disability, Juan would also be eligible for Social Security payments of $700 per month. Isabel is also employed. She earns $700 per month after taxes by working part-time at a nearby grocery store. The store gives her no benefits other than Social Security. Should Juan become disabled, Isabel would continue to work at her part-time job. If she became disabled, Social Security would provide monthly income of $300. Juan and Isabel spend 90% of their combined take-home pay to meet their bills and provide for a variety of necessary items. They use the remaining 10% to fulfill their entertainment and savings goals. Critical Thinking Questions 1. How much, if any, additional disability income insurance does Juan require to ensure adequate protection against his becoming completely disabled? Use Worksheet 9.2 to assess his needs. 2. Does Isabel need any disability income coverage? Explain. 3. What specific recommendations regarding disability income insurance would you give Juan and Isabel to provide adequate protection for themselves and their child?