Ace the 2025 Life & Health Insurance Exam – Insure Your Success Today!

The correct choice is guaranteed renewable, as this type of policy ensures that the policyholder has the right to renew their health insurance coverage for as long as premiums are paid, up to a specified age—commonly 65. This means that an insurance company cannot cancel the policy or refuse renewal as long as the insured meets the terms of the agreement, such as paying premiums on time.

This feature provides important security for policyholders, as they can maintain their coverage even if their health status changes. The policy remains in force without the risk of being dropped by the insurer, which is especially critical for individuals who may encounter health issues as they age.

Other options such as non-cancelable policies might also seem relevant, as they cannot be canceled by the insurer as long as premiums are paid. However, they typically come with price guarantees and often have fixed premiums throughout the life of the policy. Conditional renewability, on the other hand, allows the insurer to impose conditions on renewal, which does not align with the assurance of continuation until a specified age. Cancellable policies can indeed be terminated by the insurer under certain circumstances, making them less secure. Thus, guaranteed renewable policies provide the essential benefit of assured renewal protections.

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