Life & Health Insurance Practice Exam 2026 - Free Practice Questions and Study Guide

Group Disability Insurance is primarily written on a non-occupational basis, which means that it covers disabilities that occur outside of the workplace. This type of insurance focuses on providing income replacement for individuals who are unable to work due to illness or injury not related to their job.

The rationale behind this approach is to ensure that employees receive benefits for a wide range of potential health issues, thereby promoting financial security regardless of the environment in which the disability occurred. Non-occupational group disability insurance protects workers against a larger spectrum of risks rather than being limited solely to work-related incidents. This is especially important as many common health issues or accidents do not happen in the workplace.

Other options might involve insurance structures that are more specific or limited in scope. For instance, an occupational basis would typically only cover disabilities arising from job-related activities, which doesn't encompass the full range of potential health issues employees might face. The comprehensive basis could imply broader coverage but isn't specific to the typical framework of group policies. An individual basis relates to person-specific policies rather than a group setting, which is not the focus of group disability insurance.