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Guaranteed Insurability

   Also found in: Acronyms 0.01 sec.
Guaranteed insurability
A life and health insurance policy feature that enables the insured to add coverage at future times and at fixed and agreed-upon rates regardless of health conditions.

Guaranteed Insurability
A provision in some life and health insurance contracts stating that the insurance contract will be renewed at the end of its term at a certain, stated premium without regard for the policyholder's health when the contract expires. One generally must pay extra for guaranteed insurability. It should not be confused with a guaranteed insurance contract. See also: Pre-Existing Condition.


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Guaranteed insurability rider: Available at an additional cost, this rider gives insureds the ability to increase death benefit coverage in the future at no additional charge.
Other features include the Waiver of Premium facility ('OwnOccupation' definition is preferred),non-smoker rates and the guaranteed insurability options for such events as marriage, childbirth,moving house etc.
This can be accomplished by using the cash value or policy loans to buy as much term insurance as possible, perhaps through guaranteed insurability and conversion clauses thoughtfully included in the policy, then augmenting the coverage further by making additional transfers of cash to the trust to pay premiums.
 
 
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