Asked by Cayla Hamilton on Jul 27, 2024

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What is true about disability insurance?

A) It benefits the disabled employee only for the first year of disability.
B) Payments under short-term plans are less than that of long-term plans.
C) It pays about 50 to 70 percent of the employee's salary in case of disability.
D) Most employers offer long-term disability plans.
E) It offers coverage when the employee's dependent is disabled.

Disability Insurance

A type of insurance coverage that provides income in the event a worker is unable to perform their job duties due to a disability.

Short-Term Plans

Strategies or objectives set to be achieved in the immediate future, typically within a year.

Long-Term Plans

Strategic plans developed to achieve goals and objectives over an extended period, typically beyond five years.

  • Learn about the significance and protection insurance offers in the workplace context, covering health, disability, and unemployment benefits.
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Sigrid KleiveAug 02, 2024
Final Answer :
C
Explanation :
Disability insurance typically pays around 50 to 70 percent of the employee's salary in case of disability.

Answer: D
Most employers offer long-term disability plans, in addition to short-term disability plans.

Options A and E are incorrect as disability insurance can cover the employee for long periods of time and does not cover the employee's dependents. Option B is incorrect as payments under long-term plans are typically higher than short-term plans due to the extended period of coverage.