Which statement describes a guaranteed renewable policy?

Which statement describes a guaranteed renewable policy?

• A. Premiums are guaranteed for life.
• B. Renewable without proof of insurability to a specified age; premiums not guaranteed.
• C. The policy can be canceled by the insurer at any time.
• D. The policy cannot be canceled once issued.

Answer: (B)

Guaranteed renewable means the insurer must renew the policy to a specified age without requiring new medical underwriting, and premiums can be adjusted at renewal. The statement that describes this best is renewal without proof of insurability to a specified age, with premiums not guaranteed. This captures two key points: you can renew without showing you're still healthy, up to a certain age, and the insurer can raise premiums at each renewal, though it must continue to renew.

Guaranteed renewable means the insurer must renew the policy to a specified age without requiring new medical underwriting, and premiums can be adjusted at renewal. The statement that describes this best is renewal without proof of insurability to a specified age, with premiums not guaranteed. This captures two key points: you can renew without showing you're still healthy, up to a certain age, and the insurer can raise premiums at each renewal, though it must continue to renew.