Guaranteed Insurability Option Rider; insurance without medical check-up

Get additional whole life insurance at different stages in your life without medical tests.

Apnainsurance Research Bureau

21 Dec 2007

The Guaranteed Insurability Option (GIO) rider guarantees the insured the right to purchase additional whole life insurance at different stages in her/his life without having to undergo any further medical examination.

Let's look at the example of a person who took a 20 lakh insurance policy for 20 years. He had opted for the GIO rider. This means that he can top up his insurance cover as he grows older without going through any medical exam to do so. Therefore his additional premium cost is calculated taking just his advanced age into consideration and not his present medical condition (which could be worse than at the time of taking the life insurance policy). The rider in effect freezes his medical condition as it was at the time of taking the original policy.

This rider is particularly useful, when one needs to buy additional insurance to protect additional responsibility in the future.

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