Question 48

Individual life insurance requires the applicant to answer medical questions.

Individual life insurance typically necessitates the applicant to provide detailed medical information and answer specific health-related questions as part of the underwriting process. This is in contrast to group life insurance, which usually does not require this level of individual scrutiny.

A) Only group life insurance gives a choice of payment plans.

This option is incorrect because both group life and individual life insurance can offer various payment plans. The choice of payment plans is not exclusive to group life insurance, making this statement misleading.

B) Group life insurance usually requires a medical examination.

This statement is incorrect as group life insurance generally does not require a medical examination for enrollment. Instead, it often provides coverage to members without individual health assessments, which differentiates it from individual life insurance.

C) Only individual life insurance requires the naming of a beneficiary.

This option is incorrect because both individual and group life insurance policies require the naming of a beneficiary. While the process may differ, it is not exclusive to individual life insurance.

D) Individual life insurance requires the applicant to answer medical questions.

This is the correct statement, as individual life insurance applications typically involve a thorough medical questionnaire which assesses the applicant's health risk. This is a fundamental aspect of the underwriting process for individual policies.

Conclusion

The correct answer emphasizes that individual life insurance involves the applicant answering medical questions, which is crucial for assessing risk and determining premiums. In contrast, group life insurance often bypasses these requirements, which is why options A, B, and C fail to accurately describe the differences in underwriting practices between the two types of insurance.