Guaranteed Renewable Policy

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Definition of 'Guaranteed Renewable Policy'

A guaranteed renewable policy is a type of insurance policy that guarantees the policyholder the ability to renew the policy at the end of each term, regardless of their health or other circumstances. This means that the policyholder can be sure that they will always have coverage, even if they develop a health condition or their financial situation changes.

There are a few different types of guaranteed renewable policies, but they all share the same basic feature: the policyholder is guaranteed the ability to renew the policy at the end of each term. This is in contrast to a non-guaranteed renewable policy, which allows the insurance company to refuse to renew the policy at the end of each term.

Guaranteed renewable policies are often used by people who have pre-existing health conditions or who are concerned about their ability to maintain coverage in the future. They can also be used by people who want the peace of mind of knowing that they will always have coverage, regardless of what happens.

There are a few things to keep in mind when considering a guaranteed renewable policy. First, the premiums for these policies are typically higher than those for non-guaranteed renewable policies. This is because the insurance company is taking on more risk by guaranteeing the policyholder the ability to renew the policy.

Second, guaranteed renewable policies typically have a waiting period before the policyholder can make a claim. This waiting period can range from 1 to 2 years, and it is important to be aware of this before you purchase a policy.

Finally, it is important to read the policy carefully before you sign it. Make sure you understand all of the terms and conditions, including the renewal provisions, the waiting period, and the exclusions.

If you are considering a guaranteed renewable policy, it is important to talk to your insurance agent to make sure that it is the right type of policy for you.

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