Life Policy Riders

All of the following are TRUE about guaranteed insurability

The insured may purchase additional coverage at the attained age. The insured may purchase additional insurance up to the amount specified in the base policy. It allows the insured to purchase additional amounts of insurance without proving instability only at specified dates or events.

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

Waiver of Premium

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, after 10 weeks of hospitalization, died from the injuries. What would his beneficiary receive as a settlement?

$200,000

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance he can afford at this time, he wants to be sure additional coverage will be available in the future. Which of the following options should be included in the policy?

Guaranteed Insurability Options