The premium charged for exercising the Guaranteed Insurability Rider is based on the insured's what?

The premium charged for exercising the Guaranteed Insurability Rider is primarily based on the insured's attained age. This means that as the insured ages, the premium will adjust according to their current age at the time they choose to exercise the rider. The attained age reflects the insured's age at that specific moment, which is critical in determining the premium because it represents the growing risk associated with older age groups.

This aspect of the Guaranteed Insurability Rider is significant because it allows the insured to obtain additional coverage without needing to provide evidence of insurability, even as they age. The increase in premiums based on attained age accounts for the natural increase in risk associated with aging, ensuring that the insurance company can maintain appropriate pricing models.

While the other options mention different age criteria, they do not correctly describe the method of determining premiums for the Guaranteed Insurability Rider. Assumed age and average age do not directly correspond with how premiums are calculated based on the actual risk associated with the insured's current age. Issue age refers to the age at which the policy is originally issued, which does not account for age-related changes that occur thereafter. Therefore, attained age is the most accurate measurement for calculating these premiums.