NU Online News Service, Oct. 14, 2003, 1:37 p.m. EDT – MetLife Inc., New York, has introduced a guaranteed survivor purchase option, a rider for a universal life product that comes with a secondary guarantee.
The policy is a flexible-premium policy that offers a guaranteed death benefit.
The new survivor purchase rider will make the UL policy with the secondary guarantee more flexible, MetLife says.
The rider gives the policy owner the right to name as many as five other people who, once the insured dies, will have a chance to buy permanent life insurance coverage on their own lives without evidence of insurability. The designated individuals also can exercise the option at age 65 or on the 10th anniversary of the rider, MetLife says. The designated individuals can buy whole life, universal life or variable universal life coverage.
The rider could help the owners of a business fund buy-sell agreements, by giving the surviving owners a chance to increase their coverage without undergoing medical exams after the death of the insured, MetLife says.
The designated individuals would have to undergo underwriting exams when the original insured bought the policy.
The amount of coverage bought through the guaranteed survivor purchase rider can be up to five times the base insured amount on the underlying UL policy.