What type of rider on a disability income policy guarantees the right to increase benefits without a medical exam?

The guaranteed insurability rider is a feature that allows policyholders to increase their disability income benefits at specified times without the need for a medical exam. This rider is particularly important because it provides the insured with flexibility to adapt their coverage to changing needs or circumstances, such as inflation or an increase in income. This ensures that, even if the insured's health situation changes, they can still secure additional benefits without the concern of being turned down due to the new medical condition.

The other options do not provide the same benefit:

• The waiver of premium rider permits the insured to refrain from paying premiums while they are disabled, but it does not allow for an increase in benefits.

• The guaranteed renewability rider ensures that a policy will not be canceled as long as premiums are paid but does not address the increase of benefits.

• The cost of living rider typically adjusts benefits upward based on changes in the cost of living, but this is based on a predefined formula rather than allowing the insured to select increases without medical scrutiny.

Thus, the guaranteed insurability rider is specifically designed for the purpose of enhancing benefits without the barrier of medical examination, making it the correct choice in this context.