New Jersey Life Producer Practice Exam

Disable ads (and more) with a membership for a one time $4.99 payment

Study for the New Jersey Life Producer Exam. Prepare with flashcards, multiple-choice questions, and detailed explanations. Enhance your readiness and boost your confidence for the exam!

Practice this question and more.

What do guaranteed insurability riders typically protect against?

Rising Insurance Costs
Declining Health
Coverage Gaps
Market Fluctuations

The correct answer is: Declining Health

Guaranteed insurability riders are provisions that allow policyholders to purchase additional insurance coverage at specified times without having to provide evidence of insurability, which is particularly beneficial if the policyholder experiences a decline in health. This means that if an individual’s health deteriorates after purchasing the original policy, they can still increase their coverage without the risk of being denied coverage or facing higher premiums due to their new health condition. This rider is critical for individuals who anticipate needing more insurance in the future but are concerned that their health status may change and limit their ability to secure additional coverage at that time.