What does the guaranteed renewable provision allow the insurer to do?

The guaranteed renewable provision in an insurance policy is designed to give the policyholder the right to renew their coverage each year without the insurer being able to cancel the policy or deny renewal based on the insured's health status. However, this provision does allow the insurer to increase the premium at designated intervals, typically on the policy anniversary date.

This means that while the coverage continues regardless of any changes in the policyholder's health, the insurer has the ability to raise the premium, which can be influenced by factors like overall claims experience or market rates. This aspect of the provision ensures that insurers can adjust their pricing in response to economic conditions while still providing consumers with a protected right to renew their policy.