West Virginia State Life Insurance Practice Exam

What is a common characteristic of group life insurance in comparison to individual policies?

1. Higher premiums for individual coverage

2. Lower insurance amounts per member

3. No medical exam required for all members

4. Tailored options for individual needs

The correct answer is: No medical exam required for all members

Group life insurance is characterized by its provision of coverage to a group of individuals under a single policy, often provided by an employer or an organization. One of the common characteristics that sets it apart from individual policies is that no medical exam is typically required for all members of the group. This is a significant advantage as it allows easier access to coverage for group members, who may otherwise face restrictions or higher premiums due to health issues in individual policies. Since the underwriting process in group insurance is based on the overall health of the group rather than individual assessments, this feature promotes inclusivity and often ensures that all members can obtain insurance without the barrier of medical examinations. This aspect significantly contrasts with individual life insurance, where personal health status plays a crucial role in the underwriting process and can result in higher premiums or even denial of coverage for those with health concerns.