Which of the following statements is true about a Guaranteed Insurability Rider?

A Guaranteed Insurability Rider is an essential feature in life insurance policies that allows the policyholder to purchase additional coverage without the need for evidence of insurability, meaning they do not have to provide proof of their health status at the time of each additional purchase. This rider is beneficial because it enables individuals to increase their coverage as needed due to changes in their life circumstances, such as marriage, the birth of a child, or other significant life events, without the risk of being declined based on their health.

This characteristic serves people well, especially when their health might change negatively over time, allowing them to secure their family's financial future even if they develop health issues later on. While the other statements relate to features of life insurance policies, they do not accurately capture the specific function of the Guaranteed Insurability Rider. For instance, not all guaranteed insurability features apply exclusively to permanent life insurance, and the rider can indeed be included in a wide range of policy types, not just limited to a certain class of policies like term or permanent insurance.