Guaranteed insurability

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Also found in: Acronyms.

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.

References in periodicals archive ?

Guaranteed purchase option. With this feature, policyholders can purchase coverage at designated future dates or life events without proving they're in good health.

The hidden benefits of life insurance: uninsured and under-insured Americans might purchase more coverage if they knew more about Life insurance, especially some of its commonly overlooked features

Guaranteed purchase options are also referred to as "insurability options." Use of a guaranteed purchase option is particularly attractive when insurance is issued on the life of a child (see the discussion of children's life insurance on page 376).

Guaranteed purchase option

* Guaranteed Purchase Option: Does not require evidence of insurability to purchase additional life insurance at specified times during life.

PUA riders: getting the most out of whole life, now and later: adding a PUA rider to a whole life policy can boost the policy's death benefit and allow policyowners to access cash while they're still alive

"The Guaranteed Purchase Option is a way to reduce the cost, lock in your health insurability and some coverage but not every company offers this option and even the provisions can vary significantly," Slome adds.

Comparing Long Term Care Insurance? Consult a Specialist Say AALTCI Director

With greater usage of guaranteed purchase options and LTC hybrids plans, long-term care insurance can still provide substantial benefits for care when needed."

Here's a sampling of what readers are saying ..

It might even be advisable for the younger client to "take an option on tomorrow," by purchasing coverage which will provide additional insurance in later years through increasing term riders, paid-up additions, guaranteed purchase options, or an increasing death benefit equal to the annual increase of universal life cash values (sometimes referred to as either Option 2 or Option B).

Human life value

At Guardian, with guaranteed purchase options, policyholders can purchase additional insurance every three years between the ages of 25 and 46, or when they marry or have children, without taking additional medical tests, Eaton explains.

Insuring your wealth: the right insurance policy can help you build and protect your assets