Which of the following best describes a welfare benefit plan?

A welfare benefit plan is defined as an employee benefit plan that encompasses a wide range of benefits, which may include health insurance, disability insurance, life insurance, and other forms of welfare support to employees. This type of plan is designed to provide advantages related to the wellness and wellbeing of employees, rather than solely focusing on retirement or investment strategies.

The correct answer highlights the breadth and diversity of benefits that can be offered under a welfare benefit plan, emphasizing its role in enhancing the overall employee benefits package. This approach aligns with the fundamental purpose of welfare benefit plans, which is to address various employee needs beyond retirement savings.

In contrast, other options are overly narrow in scope. For instance, limiting a plan to life insurance does not encapsulate the wide array of benefits that a welfare plan can offer. Similarly, defining the plan solely in terms of retirement benefits overlooks essential aspects of employee welfare that go beyond financial preparation for retirement. Lastly, framing it as an investment strategy focused on healthcare diverges from the definition of an employee benefit plan and instead suggests a more specific financial strategy rather than a broad set of employee welfare benefits. Thus, the choice emphasizing the diversity of benefits aligns best with the established understanding of welfare benefit plans.