Guaranteed Insurability Option

Guaranteed Insurability Option allows you to increase insurance policies (at the same rate as your original policy) that would cover you without having to show proof of your insurability and of your medical, pastimes, occupation and further details. The guaranteed insurability option is usually available for people under a specified age limit, and the age limit is usually in the 40’s. Typical scenarios in which guaranteed insurability option can be used includes changes in life such as changing occupations, moving houses and having a child. This is because responsibilities change when things in life change. A guaranteed insurability option will provide for you during these changes in which you could really need them.

The Events in which You Can Get Additional Insurance Policies, as written in Legal and General’s website

For Life and/or Critical Illness Cover and Family and Personal Income Plan, you can get additional insurance policies when these events happen:
1. Marriage or any other legally approved and registered partnership
2. An increase in number of children, such as the birth or adoption of a child
3. An increase in salary due to promotion or a change of occupation, though this is not applicable to Term or Critical Illness Cover Policies taken out before May 23, 2010
4. An increase in mortgage due to moving of houses or due to progress or expansion of a property

For Income Protection Benefit:
1. Situations number three and four in “For Life and/or Critical Illness Cover and Family and Personal Income Plan”
2. Every third policy anniversary

For Whole of Life Protection Plan:
1. Situations number one, two and four in “For Life and/or Critical Illness Cover and Family and Personal Income Plan”
2. Divorce and/or the termination of any other legally approved and registered partnership

For Business Protection:
1. Increase in a business loan
2. The value of a key person to the business increases
3. A working partner’s or director’s interest in the business increases in value

For all plans:
The guaranteed insurability option can be used up to three times, though it can only be used once for marriage (or any other legally approved and registered partnership) or divorce (and/or the termination of any other legally approved and registered partnership). [1]

With guaranteed insurability you can be sure that despite the changes, there will be policies that could cover you without having to purchase a new insurance policy or without having to prove your insurability. After all, change is inevitable, and guaranteed insurability is a good way to be prepared for it.