Question

During a meeting to discuss ways to cut costs on benefit packages, the vice president of the company, Harold, suggests getting long-term disability insurance for all employees. Alexis, HR manager, disagrees with him stating that short-term disability coverage is more advantageous. Which of the following supports Alexis' statement? a. Long-term disability coverage does not have any limits on the amount to be paid each month to employees b. Short-term disability coverage is offered by few employers, which leads to a competitive advantage c. Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company d. The nature of work is such that the level of risk involved is high and injuries could be permanent

Answer 1

Answer:

The correct answer is letter "C": Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company.

Explanation:

Short-term disability is the type of employee insurance plan that gives compensation to the workers in front of injuries that are not related to work or illnesses that do not allow employees to develop their regular duties. The coverage starts between 1 to 14 days after workers suffer a condition that does not allow them to work. This type of benefit has a monthly limit which is an advantage for the firm, being this the reason why most employers offer short-term disability coverage.