Asked by: Hendrikus Peyrl
personal finance life insurance

What is the guaranteed purchase option?

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A Guaranteed Purchase Option is available for you to exercise. This option is called a Guaranteed Purchase Option (GPO). As stated in your contract, it allows an insured person to increase his or her coverage amount without providing evidence of current insurability.


Simply so, what is the guaranteed insurability option?

The guaranteed-insurability option (aka guaranteed purchase option) guarantees that the insured will be able to purchase additional insurance at regular intervals without providing evidence of insurability up to a specified age limit, which is usually in the 40s.

One may also ask, what is an impairment rider? Impairment Rider An attachment to an insurance policy that excludes or limits coverage for a specific health impairment. Also called an impairment waiver; waiver or exclusoin see also Exclusion Rider and Rider.

Likewise, what is a future purchase option?

A future purchase option is a feature of long-term disability insurance that allows policyholders to increase their insurance coverage annually as their income increases, without medical underwriting, in exchange for paying a higher premium.

What does Gio stand for in insurance?

Guaranteed Insurability Option

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What is a guaranteed renewable policy?

A guaranteed renewable policy is an insurance policy feature that obligates the insurer to continue coverage as long as premiums are paid on the policy. While re-insurability is guaranteed, premiums can rise based on the filing of a claim, injury, or other factors that could increase the risk of future claims.

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What does a guaranteed insurability rider provide?

A guaranteed insurability rider, also called a GI rider, is a life insurance rider which allows the owner of a life insurance policy to buy additional life insurance with no underwriting. A rider is an additional benefit to a life insurance policy beyond the death benefit.

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What is a Nonforfeiture option?

A nonforfeiture option is something you can choose instead of simply dropping your insurance policy. These only work if you have a type of whole life policy. If you can't make the premium payments, your insurance will quit covering you.

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What is the advantage of a payor benefit rider?

Payor benefit rider.
This rider is usually added to a child's policy, stating that if the person paying the premium on the child's behalf dies or becomes totally disabled before the child reaches the age of majority, any premiums are automatically waived.

Elias Humml

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What is a term rider?

Any insurance rider is an additional feature of a policy. A term insurance rider is an add-on to a permanent life insurance policy, most often a whole life insurance policy. The term rider adds additional life insurance, but instead of being permanent the additional coverage expires.

Aynara Danciu

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What is a payor benefit?

Definition. Payor Benefit — a provision under which premiums are waived if the person paying the premiums becomes disabled or dies. This option is often used when the insured is the child or spouse of the policyholder.

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What is a automatic premium loan?

Definition. Automatic Premium Loan — an optional provision in life insurance that authorizes the insurer to pay from the cash value any premium due at the end of the grace period. This provision is useful in preventing inadvertent lapse of the policy.

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What is a waiver of premium?

A waiver of premium for payer benefit clause in an insurance policy says that the insurance company will not require the insured to pay a fee to maintain the policy under certain conditions. Most commonly, these conditions are the death or disability of the person paying the insurance premiums.

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What is residual disability?

Residual and Partial Disability
"Residual disability" is generally defined as the inability to perform one or more duties of your occupation, or the inability to perform these duties as often as before, coupled with the loss of a significant percentage of your pre-disability income.

Virgilio Tarrero

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What is an automatic increase rider?

Automatic Increase Rider. ?A rider available with Disability insurance policies. Increases the total monthly disability benefit automatically each year for five to six years (varies among insurance companies). Premium will go up with this rider each year because more coverage is being provided.

Kenay Severo

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What is a Future Increase Option Rider?

The Future Increase Option Rider allows the insured to purchase additional insurance coverage under an existing disability policy. This gives the policyholder the opportunity to increase their coverage with evidence of financial insurability without having to undergo any additional medical underwriting!

Cañosantos Escuredo

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What is FPO inflation protection?

Insurance inflation protection is an insurance policy feature in which the value of benefits increases by a pre-defined percentage at specific time periods to keep up with inflation.

Tressa Lagaron

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What is a cost of living rider?

A rider that provides for an increase in benefits due to changes in cost of living. Increases are usually done because of changes in the Consumer Price Index.

Michell Kerjean

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What is the purpose of the impairment rider?

An impairment rider is added to disability income policies in which the insured has an existing medical condition. The impairment rider excludes coverage for that particular condition. This rider allows insureds to obtain coverage in cases where they would otherwise be denied because of their health conditions.

Rudy Elow

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What is first dollar coverage?

First dollar coverage is a type of insurance policy with no deductible where the insurer assumes payment once an insurable event occurs. While there is no deductible, the amount the insurer will pay out is often lower than on similar plans that have a deductible, or premiums for the first dollar plan will be higher.

Gaspar Brodkorb

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What is a corridor deductible?

A corridor deductible is exclusive to the health insurance industry. Once a major medical policy has paid the full stated amount of limits or benefits to an insured, if additional expenses still exist, the corridor deductible is the amount that must be borne by the insured before additional coverage is available.

Eneas Framke

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Which rider provides for an automatic increase in benefits to offset the effects of inflation?

A cost-of-living rider protects the purchasing power of your disability benefits against the effects of inflation. After you have received benefits for a year, this rider automatically increases the amount of your benefits to offset cost-of-living increases.

Tinguaro Lewejohann

Reviewer

Which policy feature waives the premium while the insured is receiving disability income benefits?

A waiver of premium rider is an insurance policy clause that waives premium payments in the event the policyholder becomes critically ill, seriously injured, or disabled. Other stipulations may apply, such as meeting specific health and age requirements.

Althea Cariaga

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Who underwrites GIO insurance?

AAI Limited

Co-Authored By:

EveryThingWhat Staff Editor

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10th April, 2020

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