Guaranteed Insurability For Life Insurance

There are a number of additional extras that can be taken out on insurance policies. Guaranteed insurability is an option on various different insurance policies’s that can be taken out. This option is only available dependant on the provider that you choose. If this is something that you are looking for in a specific type of policy as an add on or an extra benefit, then you will need to check it is available before you take the policy out. These could be life insurance, critical illness cover or income protection. It has many benefits that can be an asset to the policy holder should they feel it limits them. This may be beneficial should the individual’s circumstances change. For example if they were to suffer an illness or accident and trauma,  by having this option the insurance company will be able to renew the policy providing the premiums are paid on time.

This add on or known in the insurance world as being a rider can be used in conjunction with the policy holder getting married, getting a mortgage or simply increasing it or even due to the birth or adoption of a child. The policy sum insured can be increased with out going through the medical underwriting process again. Normally an insurance company will stipulate that the policy has to be running for at least 3 months before any changes can be made to it, however it differs from company to company. Typically this rider can only be added to a policy that has been offered to a customer at standard rates. This means the applicant is to have a clean bill of health and not to have any exclusions or exceptions made on the policy. This type of rider normally allows the policy holder to increase the level of cover that they have for no extra cost. There may be an additional premium at the start of the policy but typically once it has started the monthly amount will remain the same. There is one thing for certain in life and that is that things can change. Regardless of how efficient you are things can happen and they often do so beyond our control. We can only be prepared for this and take precautions against anything happening. Speaking to a financial adviser regarding this type of rider can be beneficial if you struggling to understand it or know if you require it or not. They will be able to advise you in detail as to the pros and cons of having it.

When taking out an insurance policy you should ensure that you take into consideration any clauses within the policy regarding health issues. This may affect your policy in the event of a claim being made and any benefits being payable.