March 17, 2018

Guaranteed Insurability Rider

The guaranteed insurability rider is an important provision that is gaining in popularity. Several of the life insurance companies now offer it standard with their life insurance policies. Dallas Fort Worth life insurance can help you understand how it works and include it with your life insurance policy.

The guarnateed insurabiity rider allows the policyowner to purchase additional permanent insurance at specified times without having to prove insurability. In other words, you are guaranteed renewal no matter what health you are in! The specified times during the permanent insurance policy could be 3 year intervals starting at age 25 and ending at age 40. Or specified occurences such as marriage or birth of a child.

The amount of insurance that can be purchased on option dates is usually limited based upon the amount and type of the base policy. Premiums for additional coverage based on insured’s attained age at the time additional coverage is added. The rider generally expires when insured attains age 40 at which time the additional premium being charged for the rider ceases being charged.

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