Question 81

The guaranteed insurability rider allows the policyowner to purchase more insurance on his own life at certain specified ages without proof of insurability.

This rider specifically enables the policyowner to increase their life insurance coverage at predetermined ages, eliminating the need for further proof of insurability, which is a crucial benefit for maintaining coverage as circumstances change.

A) on the lives of dependents at certain specified ages.

This option is incorrect because the guaranteed insurability rider pertains solely to the policyowner's own life and does not extend to dependents. The rider typically allows for additional coverage for the policyholder rather than for family members.

B) on his own life at certain specified ages without proof of insurability.

This option is correct as it accurately describes the function of the guaranteed insurability rider. It grants the policyowner the right to purchase additional insurance on their own life at specified ages without needing to provide evidence of insurability, which can be advantageous if the policyholder's health changes over time.

C) on his own life at certain specified ages, provided the policyowner is insurable.

This option is incorrect because it suggests that proof of insurability is required for the additional coverage. The essence of the guaranteed insurability rider is to allow the policyowner to increase coverage without needing to prove insurability, making this option misleading.

D) anytime during the policyowner's life, on his own life, without proof of insurability.

This option is incorrect as it implies that the policyowner can exercise the rider at any time, rather than at specified ages. The guaranteed insurability rider is limited to certain ages, which is a key aspect of its function.

Conclusion

The guaranteed insurability rider is designed to provide the policyowner with the ability to secure additional coverage on their own life at specific ages without the need for proof of insurability, making option B the clear and correct choice. The other options fail to accurately represent the terms and limitations of the rider, particularly regarding eligibility and the scope of coverage.