What does "guaranteed insurability" allow policyholders to do?

Guaranteed insurability is a provision that allows policyholders to purchase additional coverage on their life insurance policy at specified times without the need for further medical examination or underwriting. This benefit is particularly valuable for individuals who may become uninsurable due to health changes or for those who want the flexibility of increasing their coverage as their needs change, such as marriage, having children, or changes in financial responsibilities.

The ability to obtain additional coverage regardless of health conditions provides peace of mind to policyholders, ensuring that they can secure protection for their financial dependents without the worry of being turned down due to medical issues that may arise in the future. This feature enhances the overall value of the policy by allowing adaptations to changing life circumstances without the hurdles typically present in acquiring new insurance.

Other options, such as selling insurance policies at a fixed price, converting whole life insurance to term insurance, and automatically increasing cash value, do not accurately describe the benefits of guaranteed insurability. Each of those choices represents different features or concepts that do not relate to the ability of policyholders to obtain additional coverage without medical scrutiny.