Question

A guaranteed renewable disability insurance policy:________.
A. Is renewable at the option of the insurer to a specified age of the insured.
B. Is guaranteed to have a level premium for the life of the policy.
C. Cannot be cancelled by the insured before age 65.
D. Is renewable at the insured's option to a specified age.

Answer 1

Answer:

D. Is renewable at the insured's option to a specified age.

Explanation:

Guaranteed renewable disability insurance policy grants the right to proceed with a policy normally up to a specified age If the customer is paying the premium on time. Although the insurance provider is not subject to change the policy benefits or specifications, they can modify the policy premium. Guaranteed renewable policies would not terminate with a disability claim, though as far as premiums are charged in full, the insurer is obligated to keep providing cover.