46. Which of the following is NOT ordinary life insurance?
Answer: A
A group term life insurance policy is NOT ordinary life insurance.
Group term life insurance policies are typically provided by employers or organizations and cover multiple individuals under a single contract, distinguishing them from ordinary life insurance which is usually individually purchased.
A) A group term life insurance policy.
This option is correct because group term life insurance is not considered ordinary life insurance. It is a form of coverage that provides life insurance to a group of people, often without requiring individual underwriting, which differentiates it from standard life insurance policies that are purchased individually.
B) A 20-year endowment life policy.
This option is incorrect as a 20-year endowment life policy is a type of ordinary life insurance. It combines features of both life insurance and savings, providing a payout if the insured survives the endowment period or upon death before that period ends.
C) A life paid-up-at-age-65 policy.
This option is also incorrect since a life paid-up-at-age-65 policy is a standard form of whole life insurance. It ensures that the policyholder pays premiums until age 65, after which the policy is considered paid-up, providing lifelong coverage.
D) A participating whole life policy.
This option is incorrect as well. A participating whole life policy is a conventional life insurance policy that allows policyholders to receive dividends, which is a common feature of ordinary life insurance policies.
Conclusion
In summary, a group term life insurance policy is distinct from ordinary life insurance due to its group nature and lack of individual underwriting. In contrast, the other options represent various forms of individual life insurance that are well-established in the market. Thus, option A is definitively not considered ordinary life insurance, while all other choices are standard forms of life insurance coverage.