Life License Qualification Program (LLQP) Practice Exam

What type of rider allows the purchase of additional coverage without evidence of insurability?

1. Guaranteed insurability rider

2. Additional coverage rider

3. Paid-up option rider

4. Extended insurability rider

The correct answer is: Guaranteed insurability rider

The guaranteed insurability rider is designed to allow policyholders to purchase additional life insurance coverage at specified times without needing to provide evidence of insurability, such as medical exams or health questionnaires. This feature is particularly beneficial for individuals whose health status may change over time, as it ensures they can increase their coverage even if they experience health issues later on. This rider typically includes specific options for purchasing additional amounts of insurance when certain life events occur, like marriage, the birth of a child, or at set intervals. This option enhances flexibility for policyholders, allowing them to adapt their coverage to life changes without the risk of facing premium increases or denial due to health status. Other choices do not provide the same benefit of bypassing the insurability requirement. An additional coverage rider may offer the option to buy more coverage, but typically still requires a health evaluation. A paid-up option rider allows policyholders to stop paying premiums while keeping their insurance in force, and an extended insurability rider generally refers to extending the policy coverage rather than adding without proof of insurability. Thus, the guaranteed insurability rider stands out as the option that directly aligns with the concept of purchasing additional coverage without evidence of insurability.