What is the name of the rider that provides an additional purchase option in a life insurance policy?

Prepare for the Vermont Life and Health Exam. Use flashcards and multiple-choice questions with detailed explanations to ensure full preparedness. Get confident with your exam!

The guaranteed insurability rider is designed to allow the policyholder to purchase additional life insurance coverage at specified intervals without the need for further evidence of insurability, regardless of age or health status at the time of purchase. This rider proves beneficial for individuals who anticipate their insurance needs may increase due to life events such as marriage, childbirth, or increases in income. By having this rider, the policyholder can ensure they have the flexibility to increase their coverage as necessary, safeguarding against the risk of becoming uninsurable due to health issues later on.

Other riders, while valuable for different reasons, serve different purposes. The cost of living rider adjusts the death benefit based on inflation, the accelerated death benefit rider allows for early access to the death benefit under specific circumstances (like terminal illness), and the accidental death rider provides additional benefits if the insured dies as a result of an accident. None of these options provide the same mechanism for purchasing additional coverage as the guaranteed insurability rider does.

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