Texas Life Agent Practice Exam

Which rider allows for purchasing additional coverage without evidence of insurability?

1. Guaranteed insurability rider

2. Waiver of premium rider

3. Accidental death rider

4. Return of premium rider

The correct answer is: Guaranteed insurability rider

The guaranteed insurability rider is specifically designed to allow policyholders to purchase additional life insurance coverage at predetermined times without having to provide evidence of insurability. This means that, regardless of changes in health or lifestyle, the insured can increase their coverage during certain life events, such as marriage or the birth of a child, as stipulated in the policy. This feature is particularly valuable for individuals who may anticipate needing more coverage in the future but want to ensure they can secure it even if their health status changes adversely. In contrast, other riders mentioned, such as the waiver of premium rider, focus on different benefits, like waiving premium payments if the policyholder becomes disabled. The accidental death rider provides additional benefits in the case of death caused by an accident, while the return of premium rider provides a refund of premiums paid to the policyholder if the insured survives the term of the policy. None of these options grant the ability to purchase additional coverage without evidence of insurability. Thus, the guaranteed insurability rider is unique in its capacity to facilitate increased insurance coverage without the drawbacks of proving insurability.