Question

Two types of Disability Income coverage are available through group insurance plans, including:

A. Short-term disability and long-term disability
B. Temporary disability and permanent disability
C. Occupational disability and non-occupational disability
D. Accidental disability and illness-related disability

Answer 1

The two main types of Disability Income coverage offered through group insurance plans are Short-term disability and Long-term disability, which provide financial assistance for temporary and prolonged periods of work inability due to disability.

Step-by-step explanation:

In the context of group insurance plans, two types of Disability Income coverage that are commonly available are Short-term disability and Long-term disability. Short-term disability coverage is typically used to provide financial assistance to individuals who are temporarily unable to work due to a disabling condition that is expected to last for a short period, whereas long-term disability coverage is intended for more serious conditions that will prevent individuals from working for longer durations, usually lasting from a few months to even years. These benefits are an essential part of social insurance, which help individuals mitigate the risk of lost income due to disabilities.