Life & Health Insurance Exam (National Portion)Policy Provisions, Options, and RidersMedium
An insured has a life insurance policy with a Guaranteed Insurability Rider. At age 35, the insured gets married and wants to increase their coverage without proving insurability. Under what specific condition can the insured typically exercise this rider?
- AUpon the occurrence of specific life events, such as marriage or birth of a child, and at certain ages.
- BAnytime the insured desires, up to a specified age.
- COnly if the insured's health has significantly improved since policy issuance.
- DOnly upon reaching certain attained ages, regardless of life events.
Show answer & explanationAnswer & explanation
Correct answer: A. Upon the occurrence of specific life events, such as marriage or birth of a child, and at certain ages.
The Guaranteed Insurability Rider allows the insured to purchase additional insurance coverage at specified future dates or upon the occurrence of certain life events (like marriage, birth/adoption of a child, or every 3-5 years up to a certain age) without having to prove insurability.
Why the other options are wrong
- B. While there's an age limit, it's not 'anytime'; there are specific windows.
- C. The rider's purpose is to bypass proof of insurability, regardless of health changes.
- D. Life events are a key trigger, in addition to attained ages, for exercising this rider.
Guaranteed Insurability Rider
A rider allowing the insured to purchase additional amounts of life insurance at specific future dates or life events without evidence of insurability.
- No medical exam required
- Specific 'option dates' or 'life events'
- Typically expires at a certain age (e.g., 40)
Memory trick: GROW your COVERAGE, NO MEDICAL