Primerica Life Producer Practice Test

Which option should be included in a permanent life insurance policy to ensure additional coverage is available in the future?

1. Term Insurance Rider

2. Guaranteed Insurability Option

3. Waiver of Premium Rider

4. Accidental Death Benefit Rider

The correct answer is: Guaranteed Insurability Option

The Guaranteed Insurability Option is designed to provide policyholders with the ability to purchase additional coverage in the future without needing to provide evidence of insurability, such as a medical exam or health questionnaire. This feature is particularly valuable because it allows individuals to secure additional life insurance at specific intervals or life events (like marriage or the birth of a child), regardless of their health status at the time. This means that even if their health deteriorates, they can still increase their coverage to meet changing needs. In contrast, the other options serve different purposes. A Term Insurance Rider allows for temporary coverage, typically for a specified period, but it does not guarantee future coverage. The Waiver of Premium Rider provides that premiums will be waived under certain conditions, usually related to the insured's disability, but it does not facilitate future coverage expansion. The Accidental Death Benefit Rider pays an additional benefit if the insured dies as a result of an accident, but similarly, it does not allow for increased coverage in the future. Thus, the Guaranteed Insurability Option stands out as the provision that ensures the opportunity for expanded insurance coverage down the line.