Question

Tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. What kind of rider is this?

a) Waiver of premium
b) Guaranteed benefit
c) Payor benefit
d) Guaranteed insurability rider

Answer 1

The rider that Tom has on his disability income policy is a Guaranteed insurability rider. This type of rider allows Tom to increase his benefits without a medical exam.

Step-by-step explanation:

The rider that Tom has on his disability income policy is a Guaranteed insurability rider.

This type of rider allows Tom to increase his benefits without a medical exam.

It provides him with the option to purchase additional insurance coverage at specific times, such as when he experiences a life event or reaches a certain age, without having to go through the underwriting process again.