The main purpose of the guaranteed insurability rider benefit is to give the policyholder the right to

A. Cancel a health-based exclusion after a symptom-free period

B. Include his parents under the policy

C. Increase cover when a key life event occurs

D. Maintain cover despite a fall in investment value

Answer: Option C

Solution(By Examveda Team)

The main purpose of the guaranteed insurability rider benefit is to give the policyholder the right to Increase cover when a key life event occurs. A guaranteed insurability rider, also called a GI rider, is a life insurance rider which allows the owner of a life insurance policy to buy additional life insurance with no underwriting. A rider is an additional benefit to a life insurance policy beyond the death benefit.