Question

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.

Answer 1

Answer:

D. It provides 40% to 60% of the policyholder's income for up to one year.

Step-by-step explanation:

Insurance is a risk sharing device where the risk is shared between the policyholder and the insurance company through regular periodic payment called premium. What Short term disability insurance  does is to make do with the income of a person that has to leave his/her place of work as a result of sickness or injury. It provides financial assistance while the individual convalesces at home.  The employee are liable to receive 40 to 60 % of their gross weekly income pending on the premium paid. This  coverage period is 9 to 52 weeks, (i.e 2.25 to 12 months).