Guaranteed Renewable Policy

Filed Under » ,
Dictionary Says

Definition of 'Guaranteed Renewable Policy'

An insurance policy feature that obligates the insurer to continue coverage as long as premiums are paid on the policy. While re-insurability is guaranteed, premiums can rise based on the filing of a claim, injury, or other factor that could increase the risk of future claims.

Premiums can also be raised on an entire class of insured people during the life of a guaranteed renewable policy for health, life or disability insurance.
Investopedia Says

Investopedia explains 'Guaranteed Renewable Policy'

Most insurers offer both guaranteed renewable policies and non-cancelable policies. If premiums are similar for both a guaranteed and a non-cancelable policy, the non-cancelable policy will offer the double guarantee of re-insurability and locked-in premiums.

Related Definitions

  •

    Renewable Term

    A clause in a term insurance contract that allows the beneficiary to extend the coverage term for a set period of time without having to requalify for coverage. A renewable term is ...
    Read More »

  • Decreasing Term Insurance

    A type of annual renewable term life insurance that provides a death benefit that decreases at a predetermined rate over the life of the policy. Premiums are usually constant throughout ...
    Read More »

  • Variable Life Insurance Policy

    A form of permanent life insurance, Variable life insurance provides permanent protection to the beneficiary upon the death of the policy holder. This type of insurance is generally the ...
    Read More »

    • Premium

      1. The total cost of an option. 2. The difference between the higher price paid for a fixed-income security and the security's face amount at issue.3. The specified amount of payment ...
      Read More »

    • Casualty Insurance

      A broad category of coverage against loss of property, damage or other liabilities. Casualty insurance includes vehicle insurance, liability insurance, theft insurance and elevator ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions