Clause in an insurance policy that means the insurance company must renew the policy as long as premium payments are made by the insured. However, the premium may be increased when it is renewed if it raises premiums for a particular class such as everyone in a geographic area with the same type of policy. These policies may have age limits of 60, 65, or 70 years or may be renewable for life.
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This term applies to a number of different types of health insurance. Guaranteed renewable policies cannot be canceled by the insurance company as long as premiums are paid on time. Premiums may be increase, however, as long as premiums on all similar policies for the company are also increased.