What is the difference between Guaranteed Renewable versus Cancellable Life Insurance?
A guaranteed renewable life insurance policy means that the insurance company cannot cancel your insurance coverage, providing the following:
1. You’ve started a life insurance policy, been officially accepted and received your policy documentation, and;
2. You pay all the premiums when they fall due, and;
3. You’ve been honest in your dealings with the life insurer and disclosed everything required by law.
Cancellable life insurance
Cancellable life insurance contracts don’t necessarily automatically renew each year. This is a contract that is reviewed yearly and in some instances the life insurance company has the right to refuse to renew cover.
Cancellable life insurance cover, can often be offered as an alternative for people who may not be eligible for guaranteed renewable life insurance, such as individuals in very high risk occupations.