A non-cancellable provision, as the name implies, guarantees continuation of a disability insurance policy until a specified age (e.g., 60 or 65). Of course, this assumes that premiums are paid in a timely manner. A non-cancellable provision is better than a “guaranteed renewable” feature because it prevents premiums from being raised.
Guaranteed renewable policies, on the other hand, can increase premiums for designated groups of policyholders (e.g., blue-collar workers, professionals, and executives). The trade-off, of course, is that non-cancellable policies are more costly than guaranteed renewable policies.
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