Washington Life Producer Practice Exam

What is the name of the rider that allows the policyholder to purchase additional insurance without evidence of insurability?

1. Guaranteed insurability rider

2. Waiver of premium rider

3. Accidental death rider

4. Accelerated death benefit rider

The correct answer is: Guaranteed insurability rider

The rider that enables a policyholder to purchase additional insurance coverage without the need to provide evidence of insurability is known as the guaranteed insurability rider. This rider is designed to provide flexibility for the policyholder to increase their insurance coverage in the future, typically at specified intervals or upon certain life events, such as marriage or the birth of a child. This means that the insured can obtain additional coverage without undergoing the medical underwriting process again, which can be beneficial if their health status changes. In contrast, other riders mentioned do not serve the same function. The waiver of premium rider allows the policyholder to stop paying premiums if they become disabled, but it does not pertain to obtaining additional coverage. The accidental death rider pays an additional benefit upon accidental death but does not address the purchase of more insurance. The accelerated death benefit rider allows the policyholder to access a portion of the death benefit if diagnosed with a terminal illness, but it also doesn't provide additional insurance coverage. Thus, the guaranteed insurability rider stands out as the option that specifically allows for acquiring more insurance without proving insurability.