The idea that you can always buy more insurance later if you need to is very appealing to people, making the guaranteed insurability rider sound enticing. With this rider, you buy only what you need now, and when your situation changes later on and you need or want additional protection, you just buy more. You don’t have to worry about requalifying; you just purchase a new amount at the prevailing standard rates for someone your age.
For the privilege of being able to buy more insurance later without having to requalify, you pay more now. And with most guaranteed insurability riders, you can exercise this option only until you’re 45 or 50 years old (or a defined period of years, depending on the terms of your policy), which means that the additional payments you make along the way are wasted if you don’t increase your coverage by then. Furthermore, this rider is only offered with cash-value policies, which already cost more.
If you decide to purchase that added protection, make sure that you know how long you have to exercise your option.
For the privilege of being able to buy more insurance later without having to requalify, you pay more now. And with most guaranteed insurability riders, you can exercise this option only until you’re 45 or 50 years old (or a defined period of years, depending on the terms of your policy), which means that the additional payments you make along the way are wasted if you don’t increase your coverage by then. Furthermore, this rider is only offered with cash-value policies, which already cost more.
If you decide to purchase that added protection, make sure that you know how long you have to exercise your option.
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