Rhode Island Life Insurance Practice Exam

What type of insurance arrangement allows coverage without verifying individual health conditions?

1. Group life insurance

2. Term life insurance

3. Universal life insurance

4. Whole life insurance

The correct answer is: Group life insurance

Group life insurance is designed to provide coverage for a large group of individuals, often as part of an employee benefits package. One of its key features is that it typically does not require individual health assessments or medical underwriting, which means that individuals can be covered regardless of their personal health conditions. This inclusivity is advantageous, as it allows employers to offer life insurance to all their employees, making it accessible and ensuring that even those with pre-existing conditions can receive coverage. This type of arrangement contrasts with other life insurance products, which usually require detailed health information to assess risk and determine premiums. For example, term life insurance, universal life insurance, and whole life insurance generally involve individual health evaluations, which influence both the issuance of the policy and its cost. These other types of insurance might restrict coverage based on an individual's health status, making group life insurance a unique and valuable option in providing widespread access to life coverage without the barriers of health checks.