Which of the following statements is true regarding the FPO/FIO Rider?

The correct statement regarding the FPO/FIO Rider is that it cannot be used if the insured is over age 55. This is based on the specific eligibility criteria associated with this rider. The FPO (Future Purchase Option) and FIO (Future Insurability Option) riders are designed to allow insureds to increase their coverage without undergoing medical underwriting, but these options often come with age restrictions to mitigate the insurer’s risk. Once a policyholder exceeds the age limit, they may lose the ability to purchase additional coverage under these riders as a safeguard for the insurance company against increased risk associated with older applicants.

When considering the other options, medical underwriting is typically not required for increases under this rider unless specified in the terms of the policy. Additionally, these riders do not provide an immediate lump sum payment at the time of policy initiation; they function more as options for future increases in coverage under certain conditions. Finally, while the rider enhances insurability, it does not in itself guarantee permanent insurance coverage, as that characteristic depends on the underlying policy rather than the rider itself.