Who pays for disability coverage?

Who pays for disability coverage?

• A. Employee.
• B. Federal government.
• C. Employer.
• D. Employee and employer share.

Answer: (C)

Disability coverage in most workplace benefit plans is funded by the employer. A group disability policy is typically purchased by the employer and the premiums are paid to the insurance carrier, so employees receive income replacement if they become disabled. Some plans can be voluntary, meaning employees may contribute part of the premium, but the common setup is employer-paid coverage. This arrangement helps employers attract and retain staff and provides steady protection for employees without employees having to pay up front for coverage.

Disability coverage in most workplace benefit plans is funded by the employer. A group disability policy is typically purchased by the employer and the premiums are paid to the insurance carrier, so employees receive income replacement if they become disabled. Some plans can be voluntary, meaning employees may contribute part of the premium, but the common setup is employer-paid coverage. This arrangement helps employers attract and retain staff and provides steady protection for employees without employees having to pay up front for coverage.