Life Insurance – Guaranteed Insurability Rider
Being a bit of a contrarian, years ago I held out on buying a smartphone for as long as I could. I held on to my flip phone because I only “needed” to make/receive calls and send/receive texts. Never having used one, I had no idea what the device could do or how it could benefit me. Analogous to life insurance, most people know what it is but have little-to-no-knowledge of how it works and what it can do for you. Specific to whole life insurance, one of the features that you should strongly consider taking advantage of when applying for coverage is the Guaranteed Insurability Rider.
When applying for life insurance, depending on how much coverage you apply for, you will have to answer medical questions and may have to undergo a medical exam. Your health plays a large factor in price and your overall insurability. Based on your answers and the exam results (when applicable), a rating is determined. Along with your age, coverage amount and duration determine how much an insurer will charge you to cover you for the amount applied for. Many people do not know that there is a rider available on whole life policies that allows you to purchase insurance at specific dates in the future without having to go through exams or health questions. Clearly put, life insurance, with no proof of insurability. (This is very different than guaranteed issue policies that are available at very high costs and is intended for ill people.)
As with all riders, there is an additional cost. Depending on age and initial rating, the cost varies from pennies to a couple of dollars a month. The benefits outweigh the cost. If you acknowledge the benefits of coverage, you most likely understand that people generally do not get healthier as they get older. If you wait to apply for additional coverage as you grow older, your rating may not be favorable and you will pay higher premiums. The earlier you start coverage, the more profound the benefits would be.
Using a real life example, a friend of mine has a boy that was diagnosed with juvenile diabetes. His insurability is now compromised for the rest of his life. If he had a policy with this rider he wouldn’t have to worry about being able to protect the ones he loves or will love when he’s older. Consider the young adult with the budget only to accommodate a small amount of permanent coverage; as their career grows so does their budget and the ability to purchase additional insurance. Starting coverage early and electing this rider, gives you protection now and flexibility without commitment later. Imagine if all things in life allowed you to pay for peace of mind for around a buck a month.
The Guaranteed Insurability Rider protects you against the unforeseen complications of life and gives you the power to purchase insurance on your own terms in the future. Whether you’re a parent starting off your child on firm financial footing, an adult that is limited by budget or one that has a minimal insurance need now but as life happens, a growing need in the future, this rider can help you achieve your goals now and later.
About the author: Anthony Veloso has been in the life insurance business for over 2 years. He enjoys coaching football, playing outside with his dog, and taking day trips with his wife and newly born daughter. Anthony is a strong supporter of Orphanages and Battered Woman’s shelters. He would love to put his experience to work for your family to ensure that you have the right life insurance policy. You can contact Anthony at 1-800-654-1953 or AVeloso@Pivot.com.