The premium for exercising the guaranteed insurability rider is based on what factor?

The premium for exercising the guaranteed insurability rider is based on attained age. This rider allows policyholders to purchase additional coverage without providing evidence of insurability, regardless of their health status at the time of purchase. However, the cost of the additional coverage is determined by the insured's age at the time they choose to exercise the rider.

As individuals age, their risk profile changes, generally leading to higher premium rates. Therefore, when a policyholder exercises this rider, the insurance company uses the attained age to calculate the appropriate premium for the new coverage, reflecting the increased risk associated with older age.

This approach ensures that the premiums are aligned with the general principle that health insurance costs increase with age, while still offering the benefit of obtaining coverage without having to go through medical underwriting.