Clarification Of Future Insurability Guarantee/Future Increase Option

Definition of "Future insurability guarantee/Future increase option"

Kevin S. McCullough, Real Estate Agent McCullough & Associates

Option clause in a disability income policy that the insured can exercise that would permit the insured the right to purchase additional limits of coverage regardless of the insured's physical condition. These additional purchases are limited by the insured's age and a maximum dollar amount, as well as twice the total monthly disability income from all insurance companies that the insured has in force, at which time the lesser of these two amounts would apply. This option may be exercised by the insured annually, usually until age 55.