Posted in Finance, Accounting and Economics Terms, Total Reads: 407
Definition: Guaranteed Renewable Policy
Under Guaranteed renewable policy the insurance company cannot cancel the policy as long as the person continues to pay premium on time. Also the insurability of the policy is guaranteed. Policy premium of such a policy can be raised but it has to be raised for all those who availed insurance.
Thus premium has to be raised for whole class of policyholders. This ensure a check so that arbitrary rise of insurance premium by insurer is not possible. Currently all new insurances issued are guaranteed renewable policy.