A Guaranteed Insurability Feature is an optional choice within a life insurance policy that allows you to increase or renew the level of cover you have in place if a defined life event occurs e.g. getting married. Most policies will allow you to increase or renew your level of cover once every 12 months without having to provide any evidence of your health.
What are the benefits of a guaranteed insurability feature?
Some of the key reasons to consider guaranteed insurability include:
Unexpected changes to health. A guaranteed insurability rider can keep you from being worried about being declined when you renew your policy.
Your financial situation changes in the future. If you are not in a position to buy a huge amount of life insurance currently as you cannot pay the premiums, you may opt for such a rider as it will enable you to buy more insurance in the future, when and if you can afford it.
Your personal situation requires a larger sum insured in the future. Your insurance needs may change with time and the current cover that you have could be inadequate in the future due to your advancing age or due to additions in your family.
This can be a huge benefit for you if you are considering buying life insurance, nor do you have to worry about being rejected for additional life insurance on the grounds that you are uninsurable.
Richard Laycock is Finder's insurance editor, and has spent the last five years wrangling insurance product disclosure statements. His musings about insurance have appeared on Money Mag, Yahoo Finance, and Travel Weekly. When he’s not helping people make sense of insurance fine print, he is testing the quality of cocktails in his newfound home of New York. Richard studied Media at Macquarie University and The Missouri School of Journalism and has a Tier 1 Certification in General Advice for Life Insurance.
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