Which type of policy guarantees both premium rates and renewability?

A noncancellable policy is a type of health insurance that guarantees both the premium rates and renewability as long as the policyholder pays the premium. This means that the insurer cannot increase the premium or refuse to renew the policy at the end of its term, providing the insured with stability and predictability in their insurance coverage.

This is particularly important for individuals who may develop health issues over time, as it assures them that they can continue their coverage without the risk of losing it or facing higher costs. The long-term financial planning aspect of these policies makes them a valuable option for consumers, especially those concerned about potential health changes in the future.

In contrast, cancellable policies allow the insurer to cancel coverage at any time with proper notice, guaranteed renewable policies ensure renewal but can have premium increases, and optionally renewable policies do not guarantee renewal at all, placing the risk of nonrenewal on the insured.