How do individual life insurance policies differ from group life insurance?

Individual life insurance policies are specifically designed to cover one person, offering tailored coverage and benefits based on the individual's needs and circumstances, such as health history and coverage amount. This focus allows policyholders to have personal control over their benefits, name beneficiaries, and customize additional features like riders for extra coverage.

In contrast, group life insurance policies provide coverage to a group of individuals, typically through an employer or an association. The key attribute of group policies is that they can offer a simplified underwriting process since the risk is spread out over a larger number of people, which can also lead to lower costs for the individual members of the group.

This differentiation highlights not only the structure of coverage but also the approach to underwriting and risk management in insurance, making option A the correct choice. The other choices do not accurately reflect the primary distinctions between individual and group life insurance, whether they pertain to the purchasing process, premium costs, or the duration of coverage guarantees.