Guaranteed Insurability Rider
Updated On Nov 27, 2023
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Rider in life insurance is an additional benefit that one can purchase and add to a basic life insurance policy, in order to increase or decrease the coverage limit. Although buying a rider means paying extra for supplementary benefits, the extra premium is comparatively low. But you must remember that the terms and conditions of the rider vary from one insurer to another. Also, kindly note that the rider might get terminated once the claim for the benefits is made. However, the original policy continues to offer coverage.
There are several riders in term insurance, one of them being a guaranteed insurability rider. Others are critical illness riders, waiver of premium riders, etc. In this article, we will focus on what is a guaranteed insurability rider and how it works.
What is a Guaranteed Insurability Rider?
A guaranteed insurability rider allows you to buy additional insurance coverage in a specified period without taking a new medical examination. Even if your health deteriorates with age, then you can apply for coverage without going through any medical tests.
A guaranteed insurability rider may also let you renew your primary policy at the end of the policy term again without any medical check-ups, but it may end at a particular age. Also, kindly note the conditions of riders may differ from one insurance company to another.
Why Guaranteed Insurability Rider?
With the guaranteed insurability benefit rider, you can increase the death cover of your health insurance policy without providing any proof related to their insurability. Insurability here refers to the absence of high-risk factors for the insurance company to provide cover to the insured when making him/her eligible for life cover.
Importance of Guaranteed Insurability Rider
Life insurance plans come with strict clauses where various diseases or health issues may not be covered, such as diabetes, or other serious illnesses. But in such situations, if you have a guaranteed insurability rider, then you can conveniently increase the insurance coverage irrespective of the health condition of the policyholder. Also, if there is risk involved for the insured’s death, then with this rider the limit of the death benefit can be increased.
A guaranteed insurability rider also proves to be useful if there has been an important change in your life. For instance, childbirth, marriage, etc., or if you are at high risk of a particular disease because of your family's medical history, or in case you think that your health might deteriorate in the future.
End Words
To conclude, the guaranteed insurability rider offers you extra coverage to your insurance policy when you require it in the future. One of the deciding factors that determines whether you should add a rider to your insurance policy or not, can be your health.
Also Read:
Which Riders are Suitable For Retirement Plans?
How Can a Rider Make Your Term Insurance Plan More Efficient?
Disclaimer: This article is issued in the general public interest and is meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
