Which of the Following Is True of Long-Term Disability Plans

question 42

Multiple Choice

Which of the following is true of long-term disability plans?

• A)The payments typically begin after 48 weeks of disability.
• B)They usually provide 50 percent to 75 percent of the employee's base pay.
• C)They provide protection only if the disability was caused due to the nature of work.
• D)They provide a fixed annual income to all retired employees.
• E)They are taxable if the employee pays the full cost of the plan.

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Definitions:

Partnership Ownership

A form of business organization in which two or more individuals share ownership, profits, and liabilities.

Personal Liability

The legal obligation of an individual to repay his or her debts, often extending to personal assets if necessary.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction, often occurring with income taxed both at corporate and personal levels.

Firm Life

The period during which a company operates, from its inception to the point it ceases operations or is dissolved.