Erie Insurance Guaranteed Insurability Rider

Life is a journey filled with exciting, unpredictable milestones. You get married, buy your first home, or welcome a new child into the world. As your life grows, so do your responsibilities. The life insurance policy that was perfect for you at 22 might not be enough at 32.

But what if your health changes between those years? A new diagnosis or a change in your health history could make it difficult or much more expensive to get the additional life insurance coverage you now need.

This is where a powerful but often overlooked feature comes into play: the Guaranteed Insurability Option (GIO) Rider from Erie Family Life. Think of it as a VIP pass for your future self, allowing you to increase your life insurance coverage without having to answer a single health question or take another medical exam.

What is the Erie Life GIO Rider?

In simple terms, the Guaranteed Insurability Option Rider is an endorsement you can add to your life insurance policy. It gives you the contractual right to purchase additional life insurance coverage at specific points in the future, regardless of your health.

As long as your original policy and the rider are in force and your premiums are paid, you can exercise this option. It’s a powerful way to ensure your life insurance protection can grow with your life's needs.

How It Works: Your Options for More Coverage

The GIO rider gives you several opportunities to increase your coverage. You decide how much additional coverage you want to be able to purchase when you set up the rider, with a total lifetime maximum of $1,000,000 in exercised options.

There are two ways to use this benefit: Regular Option Dates and Advanced Option Dates.

1. Regular Option Dates (The Age Milestones)

Erie Insurance provides a set schedule of "option dates" based on your age. You can choose to purchase more coverage on the policy anniversary when you turn:

• Age 25, 28, 31, 34, 37, 40, 43, and 46

To exercise this option, you simply need to submit a written application to Erie Family Life up to 60 days before that policy anniversary. This window is important—the right to purchase expires on the option date itself, so planning ahead is key.

2. Advanced Option Dates (When Life Happens)

Life doesn’t always stick to a schedule. Erie understands this and allows you to advance your next regular option date when you experience a major qualifying life event. These events include:

• Marriage

• Becoming a parent (through birth or legal adoption of a child under 18)

• Purchasing a primary residence

If one of these events happens, you don't have to wait for your next age-based option date. You can exercise your option within 180 days of the event.

Here’s how it works: Let's say your next scheduled option date is at age 31, but you buy your first home at age 29. You can use your GIO rider then. This will cancel your upcoming age 31 option date, effectively using it early. It’s an advance, not an extra option, and you will be required to provide proof of the qualifying event.

Important Note for Term Policyholders: You can only exercise a GIO option while your policy is within its level term period. For example, if you have a 20-year term policy that expires when you are 45, you would not be able to use the option date at age 46.

The New Policy: What You Get

When you exercise your GIO rider, Erie Life issues a brand-new policy. Here are the key details:

• Policy Type: You have choices! You can select a new permanent plan or a new level term plan. If you choose term, the new policy’s level premium period must be the same as or shorter than your original policy. (e.g., If you have a 20-year term, you can get a new 10, 15, or 20-year term policy).

• The Magic of Your Premium Class: This is the most significant benefit. Your new policy will be issued at the same premium class as your original policy. If you qualified for a "Preferred Plus" rate when you were a healthy 25-year-old, you will get that same "Preferred Plus" rate basis for your new policy at 40, even if your health has declined.

• Rates: Premiums for the new policy are based on the rates in effect at the time and your attained age (your age when you exercise the option).

• Riders: You generally cannot add new riders to the new policy, but you may be able to transfer an existing Waiver of Premium or Purchase Option Rider from your original policy if it meets the requirements.

Who Should Consider the GIO Rider?

While valuable for many, the GIO rider is especially beneficial for:

• Young Adults & New Professionals: Your income and responsibilities are likely to grow. The GIO locks in your ability to get more coverage as your career takes off.

• Newlyweds and Those Planning a Family: You know your financial protection needs will increase significantly with a spouse, a mortgage, and children.

• Parents Buying Policies for Children (Juveniles): A GIO rider on a child’s policy is one of the greatest gifts you can give. It guarantees their ability to buy more coverage as an adult, no matter what health issues may arise in their future.

• Anyone with a Family History of Health Issues: If you are concerned about developing a medical condition later in life, the GIO provides invaluable peace of mind.

* Bonus

If you get a life policy with $100,000 or more in death benefit, you will qualify for a discount on your Erie Home policy AND your Erie Auto Policy!

Secure Your Tomorrow, Today

The Erie Life Guaranteed Insurability Option Rider is more than just an add-on; it's a strategy for lifelong financial security. It provides the flexibility to adapt your coverage to life’s biggest moments, ensuring you can always protect the ones you love without worrying about your future insurability.

Ready to build a life insurance plan that can grow with you? Contact your local Erie Insurance agent today to discuss if the GIO rider is the right choice for your policy.