Which of the Following Is Not True Regarding Employer Disability

question 63

Multiple Choice

Which of the following is not true regarding employer disability insurance?

• A) Disability benefits are provided for very long periods, usually up to 30 years.
• B) About half of all large and medium-sized firms offer an optional disability plan through an insurance company.
• C) The premiums charged through group plans are normally low.
• D) A typical disability policy covers about 60% of the employee's salary.

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Definitions:

Cash Payback Period

The time it takes for a business to recover its investment in a project, through cash inflows.

Desired Rate

Often refers to the target internal rate of return or the specific return percentage that an investor aims for in financial investments.

Present Value Index

A financial calculation that helps to evaluate the profitability of an investment or project by considering the present value of expected cash flows.

Net Present Value Analysis

A method used to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows over time.