A guaranteed renewable policy is an insurance policy where the insurance provider must renew the insurance coverage while the policyholder pays his or her premiums for the policy in question. You could frequently find many forms of this kind of policy: a guaranteed renewable disability insurance policy, a guaranteed renewable life insurance policy, or other types of guaranteed renewable policies that cover health. There is a rational guarantee of continuing coverage for the insured in these types of policies, even if they grow into a condition or conditions that increase the possibility for the insurance provider to make a claim payment.
Concerning Premiums, What Guarantees Does A Guarantee Renewable Policy Give?
When a customer has bought a guaranteed renewable policy, the insurance provider must renew the policyholder’s coverage as long as he or she keeps paying the premiums. However, the insurer does not offer explicit guarantees concerning the amount of premium that the insured could pay.
Specifically, the insured’s premiums would increase according to the past claims that have been filed against that policy, injury, or any other issue that could raise the risk involved for the insurance provider of having to pay out under the policy in question.
Usually, the insurance companies could also double the amount of the premiums to a whole class of insured people under the same policy, or similar ones, across the life period of the guaranteed renewable policy.
What Could Offer A Guaranteed Renewable Insurance Policy to You?
A guaranteed renewable health insurance policy allows the policyholder to avoid the hassle of reapplying for coverage. The same happens with a guaranteed renewable disability insurance policy and any other guaranteed renewable policy. The insured could be certain that he or she would maintain coverage if the premiums are paid and regardless of any change in the policy holder’s situation.
Nevertheless, the insured has no guarantee of being able to afford the renewed coverage, even with a guaranteed renewable policy, because the insurance providers could increase the premiums according to their perception of the risk covered by the policy.
Several insurance companies that offer guaranteed renewable policies also offer non-cancelable policies. A non-cancelable insurance policy not only says that insurers cannot cancel coverage, but they can’t reduce the level of coverage or increase the premiums. When the cost of both types of policies, guaranteed renewable and non-cancelable, are alike, the non-cancelable policy could be a better choice for you because of the added warranties it would offer.
You can get quotes from Direct Life Insurance and apply online for a guaranteed renewable insurance policy and see what you will be charged.