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Most individual policies are non-cancelable, “guaranteed renewable”. This means that you will receive individual insurance under that policy as long as you keep paying the monthly premium; however, the insurance company may raise the cost. More than likely, the price of your policy will increase year after year unless determined otherwise. If this is true, there may be a “durational rating” which is included on your policy. This usually discourages people from renewing their policy because of the yearly increase of premiums that most insurance companies impose.
On the other hand, the “conditionally renewable policy” means that the insurance company can cancel all policies like yours, not just yours. This protects you from being singled out. But it doesn't protect you from losing coverage.
Be sure you read the fine lines in the policy that clarify the percentage you insurance costs may increase as well as the state that the policy is in that governs those rules.
|Jennifer Mathes, Ph.D.|