Final answer:
It is false that evidence of insurability must be demonstrated to purchase additional life insurance under a guaranteed purchase option, as this feature lets policyholders increase coverage without a medical exam.
Step-by-step explanation:
When it comes to purchasing additional life insurance under a guaranteed purchase option, the statement that evidence of insurability must be demonstrated is false. A guaranteed purchase option typically allows the policyholder to buy additional coverage at designated times without proving insurability or undergoing a medical exam. This feature is designed to ensure that the insured can increase their coverage despite any changes in health that might otherwise make them uninsurable or result in higher premiums. However, these options often have higher premiums to account for the additional risks that the insurance company takes on.