Question

1. Can the financial effect on the family be greater for a disability than for death? Why or why not?

2. What are the possible sources of disability income?

Answer 1

1. Yes, it is true that the financial effect of a disable member is more than a death member on a family. If any income earning member of a family dies then his or her monthly income contribution towards the family stops. This reduces the gross family income.

On the other hand, if an income earning member of a family gets physically or mentally disabled due to which he or she cannot work for earning income. Then not only his or her monthly income contribution towards the family stops but also his or her cost of living as a disabled member is imposed on the other family member. This increases the expenditure of the other family members.

2. Some of the possible sources of income for disable people are:

1. Investment in Mutual Funds
2. Investment in other Capital Ventures
3. Interest income from fixed deposit