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Guaranteed Insurability Rider [A Great Addition For Young Adults and Children]

Fact Checked by Jason Herring & Barry Brooksby
Licensed Agents & Life Insurance Experts.
Insurance and Estates, a strategic life insurance provider composed of life insurance professionals, is committed to integrity in our editorial standards and transparency in how we receive compensation from our insurance partners.
guaranteed insurability option

The Guaranteed Insurability Option Rider, AKA the Guaranteed Purchase Option Rider, AKA Guaranteed Insurability Rider, is an excellent addition when considering life insurance for children or young adults. In the following article on the GIO Rider, we will unpack what it is, who should get it and how much it will cost to add to a permanent life insurance policy.

What is the Guaranteed Insurability Rider?

The Guaranteed Insurability Rider is an additional policy add-on called an insurance rider that allows the owner of the policy to purchase additional life insurance on the life of the insured at predetermined periods of time or on advanced purchase privilege options, which are specific special occasions, such as marriage, the purchase of a home or the birth of a child. The advance purchase privilege cancels the next option.

Depending on the carrier, the rider allows you to increase your coverage per your request at ages 22, 25, 28, 31, 34, 37 or 40.

Some companies, like MassMutual, offer up to 8 option periods that you can purchase additional coverage, such as at ages 25, 28, 31, 34, 37, 40, 43 and 46.

Min vs Max

The minimum amount of increase allowed varies between carriers. Typically the minimum you can get at one time is $10,000 – $25,000. The maximum amount of coverage you are allowed to increase is usually $100,000 – $125,000 or your current coverage amount, whichever is less.

Guaranteed Insurability Rider Advantages

The primary benefit of the Guaranteed Insurability Rider is the additional death benefit coverage can be purchased with no proof of insurability. That means that the additional coverage is available without a life insurance medical exam or health questions.

So, if later in life you are diagnosed with some sort of medical condition that would prevent your from getting more life insurance,  you can add on additional coverage to an existing policy or get a new life insurance policy without having to provide evidence of insurability.

Check with the specific carrier you are applying with, but typically the additional no exam life insurance coverage will be at the same rate class that the insured originally qualified for.

Rate Classes

There are 5 primary health rate classes: preferred best, preferred, standard plus, standard and substandard. (Note: the GIO rider is typically not available for substandard rate classes).

If you qualified for life insurance coverage at a preferred rate class, all future purchase options would buy life insurance at that health rate class.

So, even if you develop some health issue down the road that would drop you from a preferred rate class to a standard rate or lower, you would still be able to purchase additional coverage at that higher health rate class.


Another benefit of the GIO rider is if the policy is participating life insurance, the additional coverage will also be participating. So, if you chose dividend paying whole life insurance, your GIO rider will allow you to purchase more dividend paying whole life.


Further, if you have an existing waiver of premium rider, the new coverage should also be eligible for the same WOP rider.

How Much Does the Guaranteed Insurability Rider Cost?

The rider can be added to most permanent life insurance products, including whole life insurance and indexed universal life.

Depending on your age, the policy design you choose and the carrier you want, the guaranteed insurability rider may cost an additional $100 per year on top of your whole life insurance rates.

If you are interested in a quote that includes the guaranteed purchase option, we can put together life insurance illustrations with and without the rider so you can compare the pricing for yourself.

Who Should Consider The Guaranteed Insurability Option Rider?

Both parents and grandparents should consider the GIO rider if they want to buy life insurance for their child or grandchild.

It should also be considered if you are a young adult or newly married and believe you will probably need more coverage eventually.

Under 40

The huge benefit of the GIO rider is that if you want more coverage down the road, you can get it, no questions asked. So, with the uncertainties of life, having this option for a low cost is probably a prudent choice for anyone under the required age of 40.

Family History

Further, this rider would be a must have for anyone who has a family history of cancer, heart disease or diabetes. If there is a potential that you, your child or young adult could be diagnosed with one of these life changing diseases, adding the GIO rider to your life insurance policy should be an easy decision.

Termination of the GIO Rider

The GIO rider will terminate on the policy anniversary as outlined in the policy. The GIO rider is only available up to a specific age. That is why the GIO rider is not available for policies issued to individuals above a certain age, such as age 40 or 46, because there is no further purchase options beyond that specific age.


The guaranteed insurability rider is a great addition when considering life insurance for children or as a young adult.




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