What type of renewability describes a Disability Income policy that cannot be canceled or have its premiums increased?

The correct answer is that a Disability Income policy described as noncancellable means that the insurer cannot cancel the policy or increase its premiums for the life of the policy, as long as the premiums are paid on time. This feature provides significant security for policyholders because they can count on consistent coverage without the risk of losing their insurance or being forced to pay higher premiums due to any changes in their health status.

In contrast, other renewability types include options like guaranteed renewable, which does allow for renewal of the policy but permits the insurer to raise premiums on a class basis. Conditionally renewable and optionally renewable policies provide even less security, as they may allow the insurer to decline renewal based on specific conditions or at their discretion. Understanding these differences helps policyholders make informed decisions about the type of coverage that best meets their long-term financial and health needs.