Final answer:
Isabelle can increase her health insurance coverage on a predetermined schedule without evidence of insurability by utilizing the guaranteed insurability option often included in many insurance policies. This enables her to buy additional insurance due to certain life events or on specified dates without additional health checks, ensuring future coverage despite potential changes in health or risk factors.
Step-by-step explanation:
If Isabelle wants to increase her coverage on a predetermined schedule without further evidence of insurability, she may want to consider the guaranteed insurability option (GIO), which is commonly available in many insurance policies. The guaranteed insurability option allows the policyholder to purchase additional coverage at specified future dates or life events without having to prove insurability again. This means that even if Isabelle's health deteriorates, or her risk level increases for the insurer, she can still increase her coverage up to the agreed limits without any medical exams or additional underwriting.
For instance, under some life insurance policies, policyholders can increase their coverage when they get married, have a child, or on certain anniversaries of the policy without undergoing further medical checks. This helps individuals like Isabelle lock in coverage while they are healthy and ensures they can obtain additional coverage even if their health declines, protecting them against the adverse selection problem. In essence, the insurance company acknowledges the challenges in obtaining information on individual risk and attempts to retain clients through benefits like the GIO.
However, such options often come with specific restrictions and conditions, such as a limit on how much coverage can be added or designated times when the option can be exercised. Therefore, it is crucial for individuals to understand the terms of their insurance policy and consult with their insurance provider or a financial advisor to make informed decisions about their coverage options and future financial planning. In summary, the guaranteed insurability option is one solution for policyholders to consider within their strategy to secure their insurance needs over time.