Which statement regarding Group Disability Income Insurance is TRUE?

• A. It covers only on-the-job injuries
• B. It pays monthly only if illness occurred in hospital
• C. It provides benefits for nonoccupational illnesses and injuries
• D. It covers only temporary disability

Answer: (C)

Group disability income insurance is meant to replace part of an employee’s income when they’re disabled by illness or by an injury that is not work-related. This coverage is typically provided through an employer as a group plan and excludes disabilities that come from on-the-job hazards, since those are handled by workers’ compensation. That’s why the true statement is that it provides benefits for nonoccupational illnesses and injuries. It doesn’t limit coverage to only on-the-job injuries, and benefits don’t require hospitalization to begin—they start after a waiting period once the person can’t work, regardless of hospital status. Also, while many plans offer short-term disability protection, group disability income insurance isn’t universally limited to temporary disability; some plans cover longer periods as well.