Asked by Rosiee Adwoa on Jul 01, 2024
Verified
During a meeting to discuss ways to cut costs on benefits packages, the vice president of the company, Ian, suggests getting long-term disability insurance for all employees. Patty, the HR manager, disagrees with him, stating that short-term disability coverage is more advantageous for the company. Which of the following supports Patty's statement?
A) Short-term disability coverage is offered by few employers, which leads to a competitive advantage.
B) Long-term disability coverage does not have any limits on the amount to be paid each month to employees.
C) Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company.
D) The nature of work is such that the level of risk involved is high and injuries could be permanent.
E) The majority of the workforce is middle-aged and prefers long-term coverage.
Long-Term Disability Insurance
Insurance that pays a percentage of a disabled employee's salary after an initial period and potentially for the rest of the employee's life.
Short-Term Disability Coverage
Insurance that provides a portion of an employee’s salary if they are temporarily unable to work due to injury, illness, or childbirth.
Competitive Advantage
The ability of a company to achieve and maintain a superior position over its competitors, often through quality, innovation, cost, or customer service.
- Comprehend the function and security provided by insurance in the employment environment, encompassing health, disability, and unemployment coverage.
Verified Answer
ZK
Zybrea KnightJul 02, 2024
Final Answer :
C
Explanation :
Short-term disability plans limit the maximum coverage in a month, which means that they are more affordable for the company. This aligns with Patty's statement that short-term disability coverage is more advantageous for the company to cut costs on benefits packages.
Learning Objectives
- Comprehend the function and security provided by insurance in the employment environment, encompassing health, disability, and unemployment coverage.