Life & Health Insurance Practice Exam 2026 - Free Practice Questions and Study Guide

The Future Increase Option rider allows policyholders to increase the coverage amount of their life or health insurance policy without undergoing additional medical underwriting, typically during significant life events such as marriage or the birth of a child. This feature recognizes that these events often lead to changes in financial responsibilities and needs, motivating the individual to enhance their coverage.

When a person gets married or has a child, their financial obligations often increase, making it prudent to have a higher level of protection for their family. The Future Increase Option provides flexibility and encourages individuals to ensure their insurance coverage aligns with their evolving life circumstances. This rider is specifically designed to accommodate changes in the policyholder’s life, making it particularly relevant in such significant situations.

Other options, while they serve important functions, do not directly relate to the adjustment of coverage in response to life events. For instance, the Presumptive Disability rider pays benefits if the insured suffers a specified loss. The Garmented Insurability Rider is irrelevant as it typically relates to health underwriting, and the Cost of Living Adjustment rider adjusts benefits based on inflation but does not specifically trigger adjustments due to life events.