The guaranteed insurability option permits (for an extra cost) the cash-value policyholder to buy additional stated amounts of life insurance at stated times in the future without evidence of insurability.

Question

Quizplus · Accepted Answer

The statement accurately describes the guaranteed insurability option, which allows the policyholder to purchase additional life insurance amounts without having to provide proof of good health or insurability. However, this feature usually comes at an added cost, and the policyholder must exercise the option at predefined intervals or under specific conditions specified by the policy.

The Guaranteed Insurability Option Permits (For an Extra Cost) the Cash-Value