Although the premiums are higher and the death benefits are lower than those of term life insurance, these policies cover older age groups that guaranteed insurability clauses do not cover, allowing you to ensure your loved ones are protected if you have health problems after age 40. Although the premiums are higher and the death benefits are lower than those of term life insurance, these policies cover older age groups that guaranteed insurability clauses do not cover, allowing you to ensure your loved ones are protected if you have health problems after age 40. If you have a child with a chronic illness or similar lifelong condition, you may also consider purchasing a policy with a guaranteed insurability clause to lock them in with more preferential premiums while they are younger and comparatively healthier. Although the premiums are higher and the death benefits are lower than term life insurance, these policies cover older age groups that insurability riders don’t, allowing you to ensure your loved ones are protected if you have health problems after age 40.
If you have a child with a chronic illness or similar lifelong condition, you may also want to consider taking out a policy with a guaranteed insurability rider to ensure more preferential premiums while they are younger and comparatively healthier. In other words, if you want to increase the death benefit that will be paid to your beneficiary when you die, you won’t have to undergo another medical exam or answer additional questions. Although the premiums are higher and the death benefits are lower than those of term life insurance, these policies cover older age groups that guaranteed insurability clauses don’t, allowing you to ensure your loved ones are protected if you have health problems after age 40. If you have a child with a chronic illness or similar lifelong condition, you may also consider purchasing a policy with a guaranteed insurability clause to ensure more preferential premiums while he or she is younger and comparatively healthier.
Most guaranteed insurability clauses require the insured to exercise the option for additional coverage before a certain age. In short, the guaranteed insurability clause only serves to increase the amount of the death benefit, but does not give the option to reduce it to lower the premium.
What is the purpose of a guaranteed insurability clause in a disability income policy?
If you or your child has a health problem that will get worse as you or your child gets older, a guaranteed insurability clause might be a good option for you. For example, if you are young and healthy and have no plans to get married or have children, then a term life insurance policy may better suit your needs than a permanent policy. A guaranteed insurability clause is a useful customization for life insurance policies, but if neither you nor your dependents have long-term health problems, you probably don’t need it. It can be helpful to talk to an insurance agent about the details of guaranteed insurability, so you have a good understanding of what it may cost, how much it can increase your coverage, and whether there are any limitations on its use.
It’s important to keep in mind that the insurability clause is different from an guaranteed is different from a guaranteed issue life insurance policy that is intended for seriously ill people and has a very high premium.
