Guaranteed Insurability Rider (GI Rider)

NY Life, Accident, And Health Insurance Agent Broker Exam

Question Number 289

Guaranteed Insurability Rider (GI Rider)

allows the owner of a life insurance policy to buy additional life insurance with no underwriting.The guaranteed insurability rider is usually available at a small additional charge.The guaranteed insurability rider gives the owner of a life insurance contract the opportunity to add death benefit coverage to the policy at certain points in the insured person's life. The amount that can be added is limited to an amount such as the face value, or a given amount such as $10,000. The owner does not need to add coverage at the option date, and they may have the option to add less than the full available amount.Usually the option to add death benefit coverage through the GI rider occurs at certain pre-determined ages (which may vary by company) throughout the insureds life, but may also occur during special life events such as marriage or the birth of a child. Usually there is a cap to the amount of total coverage that can be added, or a cap to the amount of qualifying events to increase coverage.

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NY Life, Accident, And Health Insurance Agent Broker Exam

Question Number 289

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