When can a policyholder exercise a 'guaranteed insurability rider' option?

A guaranteed insurability rider offers policyholders the opportunity to obtain additional life insurance coverage without needing to provide proof of insurability, which typically involves health underwriting. This rider allows an individual to secure extra insurance at predetermined intervals or specific events, such as marriage, the birth of a child, or during designated policy anniversaries.

The correct answer reflects that the option to exercise this rider is limited to specified times outlined in the policy contract. These designated times provide a clear structure for when the policyholder can increase coverage, ensuring that the insurer can manage risk and maintain underwriting standards.

In essence, the guaranteed insurability rider is designed to provide flexibility and peace of mind while balancing the insurer's need for predictable risk management. This allows for planned adjustments in coverage that align with major life events or milestones, enabling insured individuals to adapt their life insurance as their circumstances change.