Guarantee of Insurability

Guarantee of Insurability A policy option that allows the insured to increase the monthly benefit at specified dates. This feature is mostly found in life and health insurance that guarantees the insured the right to purchase additional insurance without undergoing a medical examination or otherwise providing evidence of good health. There are two main types of GI riders: Guaranteed purchase option (GPO) riders: These riders allow the policyholder to purchase a specified amount of additional coverage at specific dates in the future. For example, a policyholder might choose a GPO rider that allows them to purchase an additional $100,000 of coverage every five years. Guaranteed purchase option (GPO) riders: These riders allow the policyholder to purchase a specified amount of additional coverage at specific dates in the future. For example, a policyholder might choose a GPO rider that allows them to purchase an additional $100,000 of coverage every five years The benefit to the insured of a guaranteed insurability feature within an income protection insurance policy is that if you want to increase your Life Insurance or Income Protection benefit somewhere down the line, means that under certain circumstances you can increase your insurance payout without needing to provide any further medical evidence. The GI rider can be a worthwhile to have included in your life insurance quote if you think your health may change significantly in the future, or if you have a family history of medical issues. It's also beneficial if you have a limited budget, but want to ensure that you'll have the option for purchasing additional coverage later on. However, there are also some drawbacks to GI riders. First, they can increase the cost of your life insurance policy. Second, they may not be available on all life insurance policies. Third, they may have certain restrictions, such as a maximum age or a maximum amount of additional coverage that can be purchased. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful