Illinois Health Insurance Practice Exam

What is the primary reason for the inclusion of an Option to Purchase Additional Insurance Rider in a health insurance policy?

1. To guarantee the policy owner's insurability

2. To accelerate the claims process

3. To reduce the waiting period for claims

4. To restrict the policy owner's coverage options

The correct answer is: To guarantee the policy owner's insurability

The primary reason for including an Option to Purchase Additional Insurance Rider in a health insurance policy is to guarantee the policy owner's insurability. This rider allows the policyholder to secure additional coverage in the future without the need for further medical underwriting or evidence of insurability at that time. This is particularly valuable if the policyholder's health condition changes, making it more difficult or even impossible to obtain additional coverage. By having this option, individuals can ensure they have the flexibility to increase their insurance protection as their needs evolve, regardless of any adverse changes in their health status. The other options do not align with the primary function of this rider. Accelerating the claims process and reducing waiting periods for claims are related to the claims-handling aspect of insurance rather than coverage options. Restricting coverage options goes against the purpose of providing additional flexibility for policyholders. Thus, the focus on guaranteeing insurability is what makes this rider valuable.