Guaranteed Insurability
A rider that gives the policyholder the option to buy more life insurance coverage at predetermined future dates or upon the occurrence of certain events (like marriage or the birth of a child) without needing to provide evidence of insurability (i.e., without a medical exam).
Detailed Explanation
This rider can be valuable for individuals who anticipate needing more coverage in the future but want to secure the option now, even if their health deteriorates.
Practical Example
When Sarah purchased her life insurance policy in her 20s, she added a guaranteed insurability rider. Years later, when she got married and had children, she was able to purchase additional coverage without having to undergo a medical exam, even though her health had changed slightly.
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