In an employer-sponsored policy, who pays the portion of the premium attributable to the cost of residual disability benefits?

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Multiple Choice

In an employer-sponsored policy, who pays the portion of the premium attributable to the cost of residual disability benefits?

Explanation:
Residual disability benefits are an optional feature that pays when you’re partially disabled and still earning some income. In many employer-sponsored plans, the base disability coverage is funded by the employer, while add‑on features like residual disability are paid for by the employee through payroll deductions. The insurer provides the coverage, and the government does not fund it. So the portion of the premium attributable to residual disability costs is the employee’s responsibility.

Residual disability benefits are an optional feature that pays when you’re partially disabled and still earning some income. In many employer-sponsored plans, the base disability coverage is funded by the employer, while add‑on features like residual disability are paid for by the employee through payroll deductions. The insurer provides the coverage, and the government does not fund it. So the portion of the premium attributable to residual disability costs is the employee’s responsibility.

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