South Carolina Life and Health Practice Exam

What type of rider guarantees Bryce the right to purchase additional amounts of coverage without requiring evidence of insurability?

1. Guaranteed acceptance rider

2. Guaranteed insurability rider

3. Accidental death rider

4. Cash value rider

The correct answer is: Guaranteed insurability rider

The correct choice is the guaranteed insurability rider. This rider allows the policyholder, in this case, Bryce, to purchase additional amounts of life insurance coverage at specified intervals and without needing to provide evidence of insurability. This is particularly beneficial for individuals who expect their insurance needs to increase over time, such as those who may anticipate changes in their financial responsibilities or dependents. The guaranteed insurability rider ensures that despite any potential health changes that might occur over the years, Bryce can still secure additional coverage without the worry of being declined due to health issues. In contrast, the other options do not fulfill the same purpose. A guaranteed acceptance rider typically assures coverage without health questions but may not provide options for increased coverage in the future. An accidental death rider is designed to pay benefits only in the event of death due to an accident and does not facilitate increased coverage. Lastly, a cash value rider pertains to the accumulation of cash value in a permanent life insurance policy and does not address the right to purchase more coverage without proving insurability. Thus, the guaranteed insurability rider is specifically designed to meet Bryce's need for future coverage enhancements without the hurdle of health assessments.