Disability Insurance Basics
What is a guaranteed renewable disability insurance policy?
A guaranteed renewable disability insurance policy guarantees that the insurance company cannot cancel the policy as long as you pay the premiums. However, the company can raise premiums for an entire class of policyholders (not just you individually). Guaranteed renewable policies are less expensive than non-cancelable policies.
Key Points
- Guaranteed renewable: company cannot cancel the policy
- Company can raise premiums for an entire class of policyholders
- Less expensive than non-cancelable policies
- Most individual disability policies are guaranteed renewable or non-cancelable
- An independent agent can help you compare non-cancelable vs. guaranteed renewable policies