What Is Guaranteed-Renewable Health Insurance?

Health insurance can help us pay the costs of our medical bills, so they don't put us into deep debt and cause financial distress in our lives. For those who are afraid of losing their coverage, guaranteed-renewable health insurance may be the answer.

Identification

• Guaranteed-renewable health insurance is coverage that the beneficiary will be able to renew once his current policy is up---guaranteed.

Time Frame

• This guarantee is only good as long as you pay your premiums on time every month. If you miss a payment, your insurer may have the option of dropping your coverage.

Effects

• Although you can renew it, the insurance company can also raise its rates in response to a claim, new health condition or anything else that would raise its financial risk.

Types

• Rates can be raised on both individual guaranteed-renewable health plans and group guaranteed-renewable health plans.

Considerations

• If you have the choice of a guaranteed-renewable policy and a non-cancelable policy, the latter may be better. With a non-cancelable policy, your premiums cannot go up like they can with a guaranteed-renewable policy.