What is a guaranteed insurability rider?

What is a guaranteed insurability rider?

• A. It allows the insured to purchase additional coverage at specified times without evidence of insurability.
• B. It guarantees the insurer will never cancel the policy.
• C. It insures against total disability.
• D. It guarantees a minimum death benefit.

Answer: (A)

A guaranteed insurability rider provides the insured the right to buy additional life insurance at specific times or events without having to prove insurability. In other words, you can increase your death benefit later without a medical exam, although you’ll pay premiums based on your age at that time. This protects you if your health declines or your needs grow, by preserving your ability to obtain more coverage later on. It doesn’t guarantee the policy won’t be canceled, it isn’t about disability protection, and it doesn’t promise a minimum death benefit—the rider simply guarantees the option to add more coverage later.

A guaranteed insurability rider provides the insured the right to buy additional life insurance at specific times or events without having to prove insurability. In other words, you can increase your death benefit later without a medical exam, although you’ll pay premiums based on your age at that time. This protects you if your health declines or your needs grow, by preserving your ability to obtain more coverage later on. It doesn’t guarantee the policy won’t be canceled, it isn’t about disability protection, and it doesn’t promise a minimum death benefit—the rider simply guarantees the option to add more coverage later.