Question 81

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

Group disability income policies typically provide benefits for a limited duration, often less than two years, reflecting the nature of short-term disabilities.

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

This option is incorrect because group disability income policies do not generally operate on a deductible basis. Instead, they provide benefits based on the terms of the policy once a claim is approved, without requiring a monetary deductible to be met first.

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

This statement is correct as group disability income policies are designed to offer short-term coverage, typically covering periods of disability that last less than two years, which aligns with common practice in such insurance policies.

C) occupational losses are typically covered.

This option is misleading. While some group disability policies may cover certain occupational losses, many primarily focus on non-occupational disabilities. Therefore, coverage for occupational losses is not a defining characteristic of group disability income policies.

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

This statement is incorrect because many group disability income policies require coordination of benefits with Workers Compensation to prevent double dipping. Policies often stipulate that benefits will be adjusted based on any Workers Compensation benefits received.

Conclusion

The correct answer, stating that the benefit periods are usually short-term in duration, accurately reflects the standard terms of group disability income policies, which are designed to provide temporary financial support. Other options either misrepresent the nature of these policies or address aspects that are not typically applicable, reinforcing that option B is the only accurate choice.