Question

Which of the following statements is true about the guaranteed insurability rider (GIR)?

All of the statements are true. The options offer the opportunity to buy additional life insurance at specific times, and if not exercised within 90 days of the specified time, the insured loses the option. The rider usually drops off at age 40.
The correct answer is: All of the above

Answer 1

The guaranteed insurability rider (GIR) is a feature of life insurance policies that allows the policyholder to purchase additional life insurance at specific times. The rider must be exercised within 90 days of the specified time, and it usually drops off at age 40. All of the statements in the question are true.

Step-by-step explanation:

The guaranteed insurability rider (GIR) is a feature of life insurance policies that allows the policyholder to purchase additional life insurance at specific times without the need for a medical exam or evidence of insurability.

One true statement about the GIR is that the option to buy additional life insurance must be exercised within 90 days of the specified time. If the option is not exercised within this timeframe, the insured loses the opportunity.

Another true statement is that the rider usually drops off at age 40, meaning that the option to purchase additional insurance is no longer available after that age.

Therefore, the correct answer is that all of the statements are true about the guaranteed insurability rider.