What is the purpose of the Guaranteed Insurability Rider in a policy?

The Guaranteed Insurability Rider is a provision in an insurance policy that allows the policyholder to purchase additional coverage at specified intervals without having to provide evidence of insurability. This means that regardless of any changes in health status, the insured can acquire additional coverage at predetermined rates that are locked in at the time of the original policy.

This rider is particularly beneficial for individuals who may be concerned about their health deteriorating in the future, which could affect their ability to secure insurance or lead to increased premiums due to health changes. By allowing the insured to purchase insurance at current rates, it ensures that they can maintain or increase their coverage according to their needs over time.

The other options do not accurately describe the purpose of the Guaranteed Insurability Rider. While the rider does relate to insurance coverage, it specifically concerns future purchases and ensuring that policyholders can obtain it without additional underwriting processes.