What does guaranteed insurability mean on a life insurance plan ?
When deciding what life insurance plan to take there are a number of options available to take with the plan. Some compaines include things as standard in the better contracts and others may charge additional premiums to include the benefits.
A guaranteed insurability option is normally included within a contract as standard but it is worth checking with your insurance provider beforehand. The actual definition of the option is when you have taken your chosen contract out and the policy has gone live and you need to increase the amount of cover you have due to your circumtances changing. Under normal circumstances you would have to take out a fresh contract or add the additional amount onto the plan.
The big difference with the guaranteed insurability option is that there is no additional underwriting needed for the extra sum assured. The company concerned will not ask any additonal health questions. The only other stipulation normally is that the policy had to be accpeted on standard terms with a standard premium.
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