Life Insurance Glossary: Terms To Know

A Guaranteed Insurability Rider provides that at certain times specified in the policy, the insured is permitted to increase the amount of the death benefit without having to prove that the insured is insurable at the time of the increase.

For example, if you own a $100,000 policy with a guaranteed insurability rider, it may provide that at the end of 5 years you have the option to increase the death benefit by an additional $25,000 without evidence of insurability.

There are generally no restrictions on this payment so beneficiaries receive the additional $25,000 even if the insured was diagnosed with a serious health conditoin the day before increasing the death benefit.

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