Question

If an insured purchases a guaranteed insurability provision on a life insurance policy, the:

a. insured is allowed to pay an extra initial premium in exchange for an assured option to buy more insurance at certain specified times later with no questions asked.
b. insurer is allowed to excuse the insured from paying premiums if the insured becomes disabled.
c. insured has to pay an extra $25 in exchange for a guarantee of coverage by the insurance, should the insured become disabled.
d. insurer has to pay double the amount of the policy to the beneficiary if the insured dies from accidental causes.

Answer 1

If an insured purchases a guaranteed insurability provision on a life insurance policy, they are allowed to pay an extra premium to buy more insurance at certain times in the future without any questions asked.

Step-by-step explanation:

If an insured purchases a guaranteed insurability provision on a life insurance policy, the insured is allowed to pay an extra initial premium in exchange for an assured option to buy more insurance at certain specified times later with no questions asked.

This provision ensures that the insured will have the opportunity to increase coverage in the future without having to go through medical underwriting or provide additional evidence of insurability.