What does guaranteed insurability in life insurance allow?

Guaranteed insurability in life insurance provides policyholders the option to purchase additional coverage without the need to provide proof of insurability. This is a significant benefit as it allows individuals to secure additional life insurance at predetermined times, such as when they experience a life-changing event (e.g., marriage, birth of a child) or at specified ages, regardless of any changes in their health status that might otherwise make it difficult or impossible to obtain additional coverage.

This feature is particularly valuable for those who may be at risk of developing health issues in the future, ensuring that they can increase their coverage as their needs grow without having to undergo medical underwriting again. It enhances the policyholder’s ability to adapt their insurance protection in response to life circumstances without the stress of health evaluations.

Other options, while related to life insurance, do not accurately describe the concept of guaranteed insurability. For example, the ability to convert term policies to permanent ones or to receive dividends pertains to different aspects of life insurance policy features. Changing beneficiaries might be a flexible option within policies, but it does not relate to guaranteed insurability. Thus, option C is the most fitting description of what guaranteed insurability allows.