3.13.1 Guaranteed Insurability Rider
The guaranteed insurability rider may be attached to a permanent life insurance policy and allows the owner to purchase additional life insurance at specified intervals in the future for specified amounts (subject to minimums and maximums) without the insured having to provide evidence of insurability. Options may be exercised typically between ages 25 and 40 at 3-year intervals. The insurance is available at standard premium rates, whether or not the insured remains insurable, but typically must be exercised within 90 days of the listed option date.
(A disability income policy is the only type of health insurance policy to which a guaranteed insurability rider may be attached. The insured may be required to maintain earnings requirements prior to each purchase - a condition stipulated by the insurer to avoid overinsurance. Most guaranteed insurability riders require the insured to exercise the option for additional coverage prior to a specific age.)