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Select the correct answer. Which sentence describes a benefit that short-term disability insurance offers a policyholder? A. It provides 30% to 40% of the policyholder's income for up to one year. B. It provides 10% to 25% of the policyholder's income for up to two years. C. It provides 50% of the policyholder's income for up to one year. D. It provides 40% to 60% of the policyholder's income for up to one year.

Question

Select the correct answer.
Which sentence describes a benefit that short-term disability insurance offers a policyholder?
A. It provides 30%  to 40%  of the policyholder's income for up to one year.
B. It provides 10%  to 25%  of the policyholder's income for up to two years.
C. It provides 50%  of the policyholder's income for up to one year.
D. It provides 40%  to 60%  of the policyholder's income for up to one year.

Select the correct answer. Which sentence describes a benefit that short-term disability insurance offers a policyholder? A. It provides 30% to 40% of the policyholder's income for up to one year. B. It provides 10% to 25% of the policyholder's income for up to two years. C. It provides 50% of the policyholder's income for up to one year. D. It provides 40% to 60% of the policyholder's income for up to one year.

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ZeldaMaster · Tutor for 5 years

Answer

D.

Explain

Short-term disability insurance is designed to provide financial assistance to a policyholder who is unable to work due to a temporary disability. The coverage typically includes a portion of the policyholder's income for a limited period of time. The percentage of income that is covered can vary, but it is commonly in the range of 40% to 60%. The duration of this coverage is usually up to one year, as short-term disability is meant to cover immediate needs rather than long-term scenarios.Option A suggests a lower range of income coverage (30% to 40%) than what is standard for short-term disability insurance. Option B provides a very low range of income coverage (10% to 25%) and extends the duration to up to two years, which is more typical of long-term disability insurance. Option C offers a flat rate of 50% coverage, which does not reflect the typical range offered by these policies.Therefore, option D, which states that the insurance provides 40% to 60% of a policyholder's income for up to one year, most accurately describes the benefit that short-term disability insurance typically offers. This option aligns with the standard coverage amounts and duration for short-term disability insurance policies.
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