Question

Which of the following statements concerning the eligibility requirements of insured disability income plans is correct? A. Short-term plans sometimes limit eligibility to salary employees only. B. Long-term plans often limit eligibility to union employees only. C. Most plans require an employee to be actively at work before coverage will commence. D. Short-term plans tend to have longer probationary periods than do long-term plans.

Answer 1

Disability Income Plan

It is an Insurance that provides income if you become disabled.   it helps to protect against family financial disaster by providing income during disability.

Short term Plan - it provides benefits for as long as six months. Coverage periods vary.

Long term Plan _ It provides benefits for more than six months.after a worker becomes disabled, and continue anywhere from five years to age 65

answer :  D. Short-term plans tend to have longer probationary periods than do long-term plans.

  

Long-term disability insurance (LTD) begins to assist the employee when short-term disability insurance (STD) benefits end. Once the employee's short-term disability insurance benefits expire (generally after three to six months), the long-term disability insurance pays an employee a percentage of their salary, typically 50-70 percent.

A. Short-term plans sometimes limit eligibility to salary employees only.

short term plans are available for all the employees but it is expansive.  

B. Long-term plans often limit eligibility to union employees only.

It is available for all the employees but the premium amount is high. It is suitable for higher-paid employees

Long-term disability insurance, provided by an employer, may be inadequate to meet a disabled employee's needs

C. Most plans require an employee to be actively at work before coverage will commence.

This plans only for after disability