Guaranteed insurability

(redirected from Guaranteed Purchase Options)

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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
With greater usage of guaranteed purchase options and LTC hybrids plans, long-term care insurance can still provide substantial benefits for care when needed."
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).
Also called guaranteed purchase options, guaranteed insurance options give a client the right to purchase additional coverage at a later date without further evidence of insurability.
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.
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).
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