What Is a Guaranteed Renewable?

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  • Written By: Mary McMahon
  • Edited By: Shereen Skola
  • Last Modified Date: 12 January 2020
  • Copyright Protected:
    Conjecture Corporation
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A guaranteed renewable is a health insurance plan the insurer is required to renew for a set period of time, as long as the policyholder remains in good standing. Someone could buy a policy for a fixed period of 10 years, for example. As long as the premiums were paid on time and no factual errors were made in the application for insurance, the insurer couldn’t cancel or make major changes to the policy, and would be required to renew annually. This can offer an extra degree of assurance to customers who want to be sure they will remain covered.

The restrictions on a guaranteed renewable include a number of responsibilities for the customer. Premiums must be paid on time and in full, or the insurer can consider the agreement broken and may choose to cancel or refuse to renew it. In addition, statements made when applying for insurance must be factually accurate and complete. Someone who claims not to drink, for example, could be dropped by the insurance company for developing an alcohol-related condition because of drinking.


In return, the insurance company must agree to renew the policy each year, even if there are changes in the health status of the customer. It also cannot make major changes to the type and nature of the coverage. There are restrictions on raising the premium; usually this is only allowed if the premium is being raised for an entire class of policyholders to adjust to changes in expenses. These protect customers from rising costs associated with insurance.

Additional protection is available through a non-cancelable and guaranteed renewable insurance policy. In this option, the insurance company cannot raise the premium, even in special circumstances. It is typically only offered to people who meet very narrow criteria. People who are young and healthy, with low risk categories, may qualify for this more advanced guaranteed renewable plan.

Some other kinds of insurance are also available in a guaranteed renewable form, including disability insurance. If this option is offered by a company, an insurance agent can provide more information and help potential customers apply. It is important to be scrupulously accurate with all account documentation, because in the event of a problem, the insurance company may seek out evidence of fraud or misstatements so it has a reason to drop the customer. Comprehensively reviewing medical records while filing the application may help, as it can allow patients to take note of anything in their history they might need to disclose.



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