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November 17, 2006, Newsletter Issue #51: Non-cancellable Policies
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Tip of the Week
A non-cancellable health insurance policy, also called a guaranteed renewable policy, is a policy that cannot be cancelled as long as you pay your premiums on time. A non-cancellable health insurance policy does not however, guarantee your premiums will not rise over time. Numerous companies are offering what are called conditionally renewable policies. Conditionally renewable policies allow the company to cancel all policies of the same type as yours. This prevents an individual from being singled out by a company based on usage patterns. However, it does not prevent your coverage from being cancelled in the event the company decides to cancel all such contracts it has. This usually happens if the amount for covering a particular group of people becomes financially undesirable for the company.
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