PSI Ohio Insurance Practice Exam

Which insurance plans are typically offered through employer sponsorship?

1. Medicare

2. Private Life Insurance

3. Long-Term Disability Insurance

4. Health Maintenance Organization

The correct answer is: Medicare

The correct choice regarding insurance plans typically offered through employer sponsorship is Long-Term Disability Insurance. Employers often provide long-term disability insurance as part of their employee benefits package to ensure that employees have financial protection in the event of an injury or illness that prevents them from working for an extended period. This type of insurance is usually offered as a group policy, which can be more cost-effective for both employers and employees compared to individual policies. While Medicare is a government program primarily for individuals aged 65 and older or with certain disabilities, and private life insurance is often purchased individually, Health Maintenance Organizations (HMOs) are a type of health insurance plan that can indeed be offered through employers. However, the inclusion of long-term disability insurance as a staple in employee benefits highlights its significant role in employer-sponsored plans, making it a relevant option in this context.