Question

Which of the following is not true regarding employer disability insurance?

A) Disability benefits are provided for very long periods, usually up to 30 years.
B) About half of all large and medium-sized firms offer an optional disability plan through an insurance company.
C) The premiums charged through group plans are normally low.
D) A typical disability policy covers about 60% of the employee's salary.

Answer 1

The statement that is not true regarding employer disability insurance is that disability benefits are provided for very long periods, usually up to 30 years.

Step-by-step explanation:

Out of the given options, the statement that is not true regarding employer disability insurance is option A) Disability benefits are provided for very long periods, usually up to 30 years.

While most disability policies have a maximum benefit period, it is typically not as long as 30 years. The actual benefit period can vary depending on the policy, but it is usually in the range of 2 to 5 years or until the insured reaches retirement age.

Therefore, option A is not true regarding employer disability insurance.