What is the purpose of an increased face amount option in a life insurance policy?

The increased face amount option in a life insurance policy is designed to allow policyholders to raise their death benefit amount without undergoing medical underwriting again. This option is particularly beneficial for individuals who may experience life changes that necessitate increased coverage—such as having children or taking on new financial responsibilities—but may not want to go through the process of providing medical information or undergoing a new assessment.

By offering this option, the insurance company provides flexibility and convenience, enabling policyholders to adjust their coverage to better meet their evolving needs without the potential barriers that come with additional underwriting. This also allows the policyholder to maintain their insurability, especially if their health status has changed since the initial policy was issued.

Other options do not correctly describe the function of the increased face amount option. For instance, reducing the existing death benefit is contrary to the purpose of increasing coverage, and decreasing premium costs and endowing the policy sooner are unrelated concepts that do not align with the specific function of this option.