Future Purchase Option
Definition
- A provision existing in some life and health insurance policies that guarantees the insured the option to purchase additional coverage in the future. Also known as a "guaranteed insurability option" or "guaranteed issue right."
Synonyms
guaranteed issue right, guaranteed insurability option
Related Terms and Acronyms
- Convertible Life Insurance — Definition,
- A type of term life insurance policy that has the option to be converted into a permanent life insurance policy such as whole or universal life insurance.
- Coverage — Definition,
- The type or amount of protection afforded by an insurance policy.
- Death Benefit (DB) — Acronym, Very Important,
- A payment or series of payments made to the beneficiaries of a life insurance policy.
➥ An amount paid to a beneficiary in a life linsurance policy. - Guaranteed Renewable — Definition,
- An insurance policy that gives the insured the option to renew the policy at the end of the its term, however the insurer has no restrictions on raising premiums.
- Health Insurance (HI) — Acronym,
- Insurance that covers the costs of medical expenses for insured persons.
- Life Insurance — Definition, Very Important,
- An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
➥ CanEquity offers life insurance. - Paid-up Additional Insurance — Definition,
- The option for a policyholder to purchase additional insurance coverage with additional premiums or policy dividends.
- Purchase Option — Definition,
- An agreement where a portion of monthly rent can be credited toward the purchase of a property.
- The portion of a vehicle lease that determines how much a lessee pays the lessor at the end of the lease to buy the vehicle. The price is usually the residual value.
