What is one requirement for a Guaranteed Insurability Rider?

A Guaranteed Insurability Rider is a valuable feature added to a life insurance policy that allows the insured to purchase additional coverage at specified times without the need to provide proof of insurability. One of the key requirements for this rider is that the insured must be under a certain age, often usually defined at the time the rider is attached to the policy. This age limit is in place because younger individuals typically represent a lower risk to the insurer; as people age, their health may decline, increasing the insurer's risk.

This age requirement ensures that the policyholder has the option to increase their coverage while they are still in a lower-risk category. If the insured were to be significantly older, the likelihood of increased health issues might prevent them from taking full advantage of the rider's benefits without incurring higher premiums or being denied additional coverage.

The other considerations, such as providing proof of good health, being employed, or purchasing at least one policy, do not reflect the primary condition tied to the Guaranteed Insurability Rider. The essence of this rider is to allow a young insured the flexibility and opportunity to increase their coverage based on life events, without the burden of reevaluating their health status every time coverage needs change.