Guaranteed Purchase Option Life Insurance Rider
The Gerber Life Grow-Up® Plan offers whole life insurance coverage for children, but how can you predict how much life insurance your child or grandchild will need as an adult?
What if your child develops a medical condition or has a risky kind of job that may prevent approval for adult life insurance?
That’s where the benefit of having guaranteed insurability comes into play. It’s an expanded advantage — called a “rider” — that gives your child the opportunity to get more life insurance as an adult, as life situations and needs change.
What is a guaranteed insurability rider?
A “guaranteed insurability rider,” also known as a “guaranteed insurability option” or “guaranteed purchase option,” is available in some companies for children’s life insurance policies. It gives your adult child the opportunity to buy additional coverage at certain policy anniversary dates or life events, regardless of health or occupation.
With the Gerber Life Grow-Up® Plan, a Guaranteed Purchase Option Rider is automatically included at no extra cost, assuring your child of the opportunity — the option — to buy additional coverage, at our standard adult premium rates for their age at that time, with no medical exam needed.
How does the Guaranteed Purchase Option Rider work?
Say that your adult child needed increased life insurance coverage. If the existing policy did not have a guaranteed insurability rider, the alternative would be to apply for a new life insurance policy — which could mean that your child may need to undergo a medical exam and maybe pay a higher premium because of a preexisting health condition.
No worries if your child has the Gerber Life Grow-Up® Plan. It guarantees future insurability and waives underwriting requirements. Your child can’t be turned down.
More good news. At age 18, the coverage amount of the Grow-Up® Plan automatically doubles at no extra cost. Then, when the child turns 21 years of age, the policy ownership automatically transfers from the parent to the child. As an adult, your child will have several opportunities to buy more coverage should they want to. They can buy more coverage without a medical exam or questions about health and job status. The monthly premium remains the same as when you bought the policy, for as long as premiums are paid.
With the Grow-Up® Plan, your child’s future insurability is guaranteed.
Guaranteed Insurability Purchase Option Periods
Most policies offer specific time periods to exercise a guaranteed insurability purchase option, known as option dates.
A child covered by the Grow-Up® Plan has 90 days after turning age 21 to begin buying adult life insurance. They also could get more coverage upon marriage, childbirth, or at age 25 or 35 or certain other ages — up to four times in total — and have 90 days to make the decision.
Guaranteed Purchase Option Limits
Most policies limit how much adult life insurance you can buy with a guaranteed insurability rider and how often you can increase the coverage amount.
With the Gerber Life Grow-Up® Plan, your child would have the right to buy up to 10 times the original coverage amount for up to $100,000 in protection — more than available elsewhere for this type of policy.
Whether or not your child decides to exercise a guaranteed purchase option, buying a children’s life insurance policy today gives the benefit of choice when they grow up. You can’t predict how much coverage they’ll need as an adult, but the important thing is that you can provide flexibility of choices and protection against the unexpected twists and turns of life.
For more questions or for a Grow-Up® Plan cost, call us toll-free at 1-800-704-2180 to get your personalized quote today. You’ll be taking the first step towards providing a brighter financial future for your child.
