Question

When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?

A) At future dates specified in the contract with no evidence of insurability required
B) Only upon completion of a medical examination
C) Anytime during the policy term with a full medical underwriting process
D) Only if the insured experiences a significant life event

Answer 1

A Guaranteed Insurability Rider allows the insured to buy additional coverage at specific future dates outlined in the contract without evidence of insurability, ensuring they can increase their life insurance benefits regardless of health changes.

Step-by-step explanation:

A Guaranteed Insurability Rider allows the insured to buy additional coverage at specific future dates outlined in the contract without evidence of insurability, ensuring they can increase their life insurance benefits regardless of health changes. A Guaranteed Insurability Rider is an addition to a life insurance policy that allows the insured to buy additional coverage at future dates specified in the contract without having to provide evidence of insurability.

This means that the insured can increase their benefits without the need for a medical examination or any underwriting process, regardless of any changes in their health. While the rider does offer the flexibility of increasing coverage, it is bound to specific rules as stated in the insurance contract, which typically include the occurrence of predefined life events such as marriage or the birth of a child.