Arizona Life and Health Practice Exam

What is the name of the rider that provides an additional purchase option in a life insurance policy?

1. Accidental death rider

2. Guaranteed insurability rider

3. Waiver of premium rider

4. Term rider

The correct answer is: Guaranteed insurability rider

The rider that provides an additional purchase option in a life insurance policy is known as the guaranteed insurability rider. This rider allows the policyholder to purchase additional coverage at specified times without needing to provide evidence of insurability. This means that even if their health status changes over time, they can still increase their coverage, ensuring that they can adequately meet their financial protection needs as circumstances evolve. This rider is particularly valuable for those who anticipate future needs for more coverage, such as when they start a family, buy a home, or when their financial obligations increase. It provides peace of mind, knowing they have the opportunity to secure additional insurance without the risk of being denied coverage due to health issues that may arise later. While other riders serve different purposes—like providing benefits in case of accidental death or waiving premiums in the event of disability—they do not specifically offer an additional purchase option like the guaranteed insurability rider does.