What is the definition of Guaranteed Insurability (GI) Benefit ?

A Guaranteed Insurability (GI) Benefit is a supplement that can be added to the life insurance policy that provides the insured person with guaranteed insurability. That means that terms of the policy or additional life insurance (of the same type) can be bought without the need for the insured person to prove that he is still insurable.

The insured person does not have to go through the physical exams. There are some conditions, though. The additional cover may be bought on the policy anniversaries specified (where one can add policy coverage for every five years of the life of the policy), upon the birth of a child, or at stated times in the policy. There is also a specified maximum age at which this option is terminated.

For families, it is recommended that this option be taken to provide for the need for additional insurance as the family grows in number.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage