HRM 1828 DQ pg 186

docx

School

Columbus State Community College *

*We aren’t endorsed by this school

Course

1828

Subject

Finance

Date

Apr 3, 2024

Type

docx

Pages

Uploaded by GrandNeutronOkapi14

Fredriona Moore HRM 1828 Benefits Discussion Questions 1-5 (page 186) 1. Discuss the basic concept of insurance. How does this concept apply to disabilities and life? As a risk management tool, insurance entails pooling resources to lessen the financial impact of unforeseen events like accidents, illnesses, or natural disasters. Typically, policyholders pay premiums toward this pool. The idea of insurance is applicable in different ways to different facets of life, including life and disability. Disability Insurance: Disability insurance is a kind of insurance that shields people's finances if an illness, accident, or other disabling circumstance prevents them from working. Disability insurance is predicated on the notion that people might become incapacitated and unable to work, which would put them in a difficult financial situation. People can get a monthly benefit to help with living expenses like utilities and mortgage payments by getting a disability insurance policy. A portion of the insured's pre-disability income, typically between 25% and 60%, is paid by the policy. Policies for disability insurance can be either long-term or short-term, and some of them may include extra features like coverage for one's own occupation or residual disability benefits. Life Insurance: Life insurance is a type of insurance that provides financial protection to a designated beneficiary in the event of the insured's death. The concept of life insurance is based on the idea that individuals may pass away unexpectedly, leaving behind dependents who may require financial support. By purchasing a life insurance policy, the insured can provide a lump-sum payment to their beneficiary, which can be used to cover funeral expenses, pay off debts, or provide financial support for dependents. Life insurance policies can be term life insurance, which provides coverage for a specific term, or permanent life insurance, which provides coverage for the insured's entire life. Insurance is the idea of pooling resources to lessen the financial impact of certain events. This is true for both life and disability insurance. Life insurance protects against financial loss in the event of the insured's passing, while disability insurance does so if the insured is unable to work. Both kinds of insurance can guarantee that a person's financial needs are satisfied in the case of an unforeseen circumstance and assist a person and their dependents in being ready for unanticipated events. 2. Identify three types of life insurance plans. Briefly describe the differences among them.  Term Insurance Plan – It is a pure life insurance plan, which provides coverage for a specific term or period. If the insured person survives the term, then there is no payout. However, if the insured person passes away during the term, then the beneficiaries receive the payout. Term insurance is generally cheaper than other types of life insurance plans.  Whole Life Insurance Plan – It is a type of life insurance plan, which provides coverage for the entire life of the insured person. It accumulates a cash value over time, which can be used to pay the premiums or receive a payout upon the

insured person's death. Whole life insurance plans are generally more expensive than term insurance plans.  Universal Life Insurance Plan – It is a type of life insurance plan, which is like whole life insurance plan, but it allows the insured person to adjust the premium and the coverage amount based on their financial situation. It also accumulates a cash value over time, which can be used to pay the premiums or receive a payout upon the insured person's death. Universal life insurance plans are generally more expensive than term insurance plans. Final answer: The main difference among these life insurance plans is the term of coverage, the amount of coverage, and the premium amount. Term insurance plan provides coverage for a specific term or period, while whole life insurance plan and universal life insurance plan provide coverage for the entire life of the insured person. The premium amount for whole life insurance plan and universal life insurance plan can be adjusted by the insured person, while the premium amount for term insurance plan is fixed. 3. Compare the main objectives of state regulation of workers’ compensation programs and employer-sponsored disability and life insurance plans. The goals and purposes of employer-sponsored disability and life insurance plans and state regulation of workers' compensation programs are different . Employer-sponsored insurance plans concentrate on providing financial security for dependents in the event of an employee's death and income replacement for disabilities unrelated to the workplace, while workers' compensation programs aim to provide compensation, rehabilitation, and legal compliance for work-related injuries. Mandatory coverage, prompt assistance, and extensive benefits are among the benefits of state-regulated workers' compensation programs; employer-sponsored plans, on the other hand, provide flexibility, customization, and the capacity to augment government initiatives. A comprehensive assessment of organizational needs, education and communication initiatives, regulatory compliance, risk management strategies, and ongoing evaluation of insurance plans to guarantee their suitability and alignment with employee needs are all necessary when choosing suitable solutions for challenges in these programs. By understanding the objectives and differences between these two forms of insurance, organizations can effectively navigate the complexities of workplace insurance and ensure the well-being and financial security of their employees. 4. List and describe the types of claims in state workers’ compensation programs. Is there redundancy with employer-sponsored private insurance? Explain your answer. There are three types of claims that employees can submit for workers' compensation benefits . An injury claim is typically described as a request for compensation for a disability resulting from an incident that happened while the employee was performing their job duties, such as a fall, an injury sustained while using equipment, or a physical strain from heavy lifting. A claim for an occupational disease arises when a person becomes disabled due to a condition connected to a specific industrial process or trade. Workers' compensation programs typically cover the following occupational diseases:

 Pneumoconiosis, which are associated with exposure to dusts.  Silicosis from exposure to silica  Asbestos  Radiation illness Death claim asks for compensation for a death that occurs in the course of employment or is caused by compensable injuries or occupational diseases.  Employer – sponsored disability insurance typically takes two forms.  Short-term disability insurance provides benefits for limited periods of time, usually less than six months.  Usually consider disability as an inability to perform any and every duty of one’s occupation.  Long-term disability insurance provides benefits for extended periods of time anywhere between six months and life.  Inability to engage in any occupation for which the individual is qualified by reason of training, education, or experience. Both short-term and long-term disability plans may duplicate public disability benefits mandated by Social Security Act and state workers’ compensation laws. These company- sponsored plans generally supplement legally required benefits. Employer-sponsored plans do not replace disability benefits mandated by law. 5. Under what circumstances should employees be ineligible for public or private disability and life benefits? Discuss the rationale for your answer. Are the expenses associated with providing public and private programs serving the best interests of society? Workers should be qualified for life insurance and disability benefits from both public and private sources . It could be argued that an employee should not be eligible for a short-term disability if their family has the means to support them. The costs incurred by public and private programs serve society's best interests because disabilities of all kinds can have a devastating effect on workers and their dependence, particularly on those who lack the means to support themselves.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

HRM 1828 DQ pg 186

Related Documents