Question

All of the following are correct regarding group disability coverage except:

a. premiums for group disability coverage are typically lower than premiums for individual policies.
b. employer-sponsored group disability coverage is usually coordinated so that there is continuous income coverage between short-term and long-term policies.
c. employers may pay premiums on behalf of the employees or allow the employees to pay the premium directly through payroll deduction.
d. since plans must be nondiscriminatory, the same definition of disabled will apply for all employees.

Answer 1

The incorrect statement about group disability coverage is that the same definition of disabled must apply for all employees, as these definitions can vary between policies.

Step-by-step explanation:

The incorrect statement regarding group disability coverage is: d. since plans must be nondiscriminatory, the same definition of disabled will apply for all employees. This is not necessarily true as the definition of 'disabled' can vary between different policies and providers, and even within an employer's range of offerings.

Group disability insurance typically offers lower premiums compared to individual policies as the risk is spread across many individuals and the administrative costs are lower. Additionally, the seamless coordination between short-term and long-term policies ensures that employees receive continuous income coverage during periods of disability. Employers may cover the premiums entirely or partially, offering employees an opportunity to contribute via payroll deduction.