Which type of coverage typically pays for only the current year's premium under a group health plan?

The correct answer is that this type of coverage, which typically pays for only the current year's premium under a group health plan, is referred to as annual coverage. This term reflects the nature of the policy, where it is renewed on a year-to-year basis, and payment of premiums is limited to the current year's coverage period.

Annual coverage is designed to provide a systematic approach to health insurance within a group plan, ensuring that members are covered for a specific duration without any long-term commitment beyond that period. This structure allows organizations and employees to manage their health coverage in terms of costs and benefits more effectively, as they only pay for coverage that is utilized during the year.

In contrast to annual coverage, other types mentioned, such as perpetual and term coverage, serve different purposes or timeframes which do not align with the idea of only paying for the current year's premium. Each of these options has distinct characteristics, but annual coverage is specifically tailored to address the yearly renewal cycle typical in many group health insurance policies.