A rider allowing the insured to purchase additional amounts of insurance at certain ages, events, or dates without evidence of insurability is called

A rider allowing the insured to purchase additional amounts of insurance at certain ages, events, or dates without evidence of insurability is called

• A. Guaranteed Insurability Rider
• B. Term Rider
• C. Cancellable Rider
• D. Long-Term Disability Rider

Answer: (A)

The concept here is insurability-preserving riders in life insurance. A guaranteed insurability rider lets the insured buy additional amounts of life insurance at specific ages, events, or dates without having to show evidence of insurability. In other words, you have a purchase option that ensures you can increase coverage later even if your health isn’t perfect at that later time. The premium for the added coverage is based on your age at the time you exercise the option, not on your health status then. This matches the description in the question because you’re not undergoing new underwriting for the extra coverage—you’re simply exercising a guaranteed option to buy more protection in the future. It’s different from a term rider, which adds temporary term coverage; from a cancellable rider, which can be dropped by the insurer; and from a long-term disability rider, which provides disability benefits rather than additional life insurance.

The concept here is insurability-preserving riders in life insurance. A guaranteed insurability rider lets the insured buy additional amounts of life insurance at specific ages, events, or dates without having to show evidence of insurability. In other words, you have a purchase option that ensures you can increase coverage later even if your health isn’t perfect at that later time. The premium for the added coverage is based on your age at the time you exercise the option, not on your health status then.

This matches the description in the question because you’re not undergoing new underwriting for the extra coverage—you’re simply exercising a guaranteed option to buy more protection in the future. It’s different from a term rider, which adds temporary term coverage; from a cancellable rider, which can be dropped by the insurer; and from a long-term disability rider, which provides disability benefits rather than additional life insurance.