Question 81

The benefit periods are usually short-term (less than 2 years) in duration.

Group disability income policies generally provide benefits for a limited time, often less than two years, making option B the correct choice.

A) benefits are paid once a monetary deductible is met.

This option is incorrect because group disability income policies typically do not operate on a deductible system like health insurance. Instead, they usually pay benefits based on the occurrence of a disability without requiring a monetary deductible to be met first.

B) the benefit periods are usually short-term (less than 2 years) in duration.

This option is correct as most group disability income policies are designed to offer short-term benefits, generally lasting less than two years. This is characteristic of such policies, focusing on providing temporary financial assistance during recovery.

C) occupational losses are typically covered.

This option is incorrect because while some group disability policies may cover occupational losses, others may not, especially if the disability is non-work-related. Therefore, it cannot be generalized that occupational losses are typically covered in all group disability income policies.

D) typically do not require coordination of benefits with Workers Compensation.

This option is also incorrect. Many group disability income policies do require coordination of benefits with Workers Compensation to avoid duplication of benefits and ensure that the individual does not receive more than their pre-disability income.

Conclusion

In summary, option B is definitively correct as it reflects the standard structure of group disability income policies, which generally provide short-term benefits lasting less than two years. The other options fail to accurately describe the nature of these policies, either misrepresenting their operational mechanics or the coverage provided.