Non – Cancelable Health Insurance Policy
A non-cancelable health policy, also called a guaranteed renewable policy, is a type of health insurance policy which guarantees that you will continue to be covered as long as you pay your monthly premiums on time. Most individual policies fall into the non-cancelable health insurance category. The other type of policy available to you is called a conditionally renewable policy, but it is not as common. Under a conditionally renewable policy, the insurance company insures you under the condition that they can cancel all policies like yours at any time. With a non-cancelable policy, you are guaranteed coverage as long as you continue to make your monthly premium payments on time.
Non-Cancelable Policies Can Still Raise Health Premiums
However, just because your policy is non-cancelable, that does not mean that your premium rates cannot be raised. You are guaranteed health care coverage under the policy, but you are not guaranteed the same premium rate over the life of the policy. Usually, insurance companies will increase your premium rates every year, even if you have the same policy. As you get older, you may qualify for different rates under the same non-cancelable health policy. Some policies include a durational rating that may determine the cost increase after a certain amount of time, and this sometimes discourages people from renewing their non-cancelable policy due to the increase. However, a yearly increase in premium costs is standard procedure at most insurance companies.
Reading the Fine Print in Your Non-Cancelable Health Policy
When you get the terms and conditions of your non-cancelable health insurance policy, be sure to read the fine print so you understand the type of policy you have purchased and what your cost increases are likely to be. If you have a conditionally renewable policy, you may be subject to state laws that govern your type of policy as well. Talk to your insurance agent or call your insurance company if you have concerns or require clarification regarding the type of policy you currently hold.