A guaranteed purchase option is when an insured sells an interest in the life insurance policy to an investor,who then becomes the policy's beneficiary.

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A guaranteed purchase option (GPO), also known as a guaranteed insurability rider, is an optional provision in a life insurance policy that allows the policy owner to purchase additional insurance coverage without the need for a medical exam or evidence of insurability. It does not involve selling an interest in the policy to an investor.

A Guaranteed Purchase Option Is When an Insured Sells an Interest