Washington Life Producer Practice Exam

Which of the following best describes a benefit of individual health insurance plans?

1. Lower costs

2. More customization

3. Guaranteed acceptance

4. Tax-exempt payments

The correct answer is: More customization

The best description of a benefit of individual health insurance plans is the increased ability for individuals to customize their coverage to meet specific needs and preferences. Individual health insurance plans allow policyholders to select from various options, including different levels of coverage, deductibles, co-pay amounts, and additional features. This flexibility enables individuals to tailor their insurance to fit personal health care needs or budget constraints, something that is typically less achievable with standard group plans provided by employers. In contrast, while lower costs or guaranteed acceptance might be features associated with certain group health plans or community-rated plans, they do not apply universally across all individual plans. Tax-exempt payments commonly relate to specific payroll deductions for employer-sponsored coverage and do not generally apply to individual health insurance policies. Thus, the customizable aspect of individual health insurance plans stands out as a significant advantage for consumers seeking tailored health care solutions.