Santa Singh and Babli Singh, a husband and wife, have just purchased a new home. They
have a mortgage on the home of $200,000. Both Santa and Babli work for employers who do not
offer any employee group benefits. Santa works as a fee for service consultant in environmental
engineering. Babli works as an executive assistant. They are expecting their first child in six
months. Santa has an annual income of $60,000 and Babli has an annual income of $30,000.
Babli is planning on returning to work six months after having the child. They want to look at an
insurance program that will address both their short-term and long-term needs.
From the information provided above, which of the following best analyzes Santa's disability insurance needs?
A. An individual disability policy that covers both total and residual disability with a cost of
living rider.
B. An individual disability policy that covers both total and partial disability.
C. An individual disability policy that covers total disability.
D. An accident only individual disability policy.
E. Santa does not require disability insurance.
