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A
The policy cannot be cancelled under any circumstances
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B
The rider allows the policyholder to purchase additional life insurance at specified future dates or life events (marriage, birth of child) without providing new evidence of insurability — regardless of changes in their health since the original policy was issued
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C
It guarantees that premiums will not increase
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D
It guarantees a minimum interest rate on the cash value
Why this is the answer
THE GUARANTEED INSURABILITY RIDER (GI RIDER) — also called the guaranteed purchase option (GPO) — addresses one of the most significant planning risks: becoming uninsurable before you need more coverage. VALUE OF THE RIDER: If the insured develops a serious health condition (cancer, heart disease, diabetes) after the original policy is issued, they could become uninsurable or only insurable at very high premiums; the GI rider guarantees the right to buy additional coverage at specific future events WITHOUT medical underwriting. OPTION EVENTS: Future specified ages (typically 28, 31, 34, 37, 40 — varies by company); Marriage; Birth or adoption of a child; The insured exercises these options to buy additional coverage by presenting the option election (and proof of the life event, if event-based) — no health questions, no medical exam. LIMITS: Each option has a maximum additional amount that can be purchased; if the insured declines to exercise an option when it's available, it may be lost; COST: The GI rider adds a small premium to the base policy; the cost is justified by the value of locking in insurability; EXPIRY: Most GI riders expire at age 40-45 — options must be exercised before this age; IDEAL FOR: Young insureds in good health who anticipate needing more coverage as their income and family grow; those with family histories of serious health conditions who may become uninsurable.
Source: Life Insurance License Exam, Guaranteed Insurability Rider