What is a major characteristic of an insurance policy that is guaranteed renewable?

A guaranteed renewable insurance policy is designed to provide protection for the insured as long as they continue to pay the premiums. This means that once the policy is issued, the insurer cannot cancel the policy or refuse to renew it at the end of the policy term, as long as the insured pays the required premiums. This feature provides peace of mind to policyholders, as they know they will maintain their coverage regardless of changes in their health status or age.

This characteristic is particularly significant for individuals who might experience health issues that would make it difficult for them to secure coverage in the future, ensuring continuous protection over time. While the insurer can adjust premium rates upon renewal, the policy itself remains in force, provided that premiums are kept current. Thus, the emphasis is on the assurance that the coverage will continue, enhancing the policy’s value for the insured.