Which type of renewability applies to a Disability Income policy that covers an individual until age 65 with adjustable premium rates?

The type of renewability that applies to a Disability Income policy covering an individual until age 65 with adjustable premium rates is guaranteed renewable. This means that the insurer must renew the policy at the end of each term as long as the premiums are paid, and the coverage continues until the specified age, which in this case is 65. The fact that the premium rates are adjustable indicates that while the individual has the right to renew the policy, the insurer can modify the premium based on certain factors.

Guaranteed renewable policies provide a significant advantage to policyholders, as they ensure continued coverage regardless of changes in health status, making them an attractive choice for long-term disability income protection. This type also assures individuals that they won’t face cancellation or denial of renewal when they might need the coverage the most.

In contrast, other options like conditionally renewable policies might limit renewal based on specific conditions, non-renewable policies do not guarantee renewal, and optionally renewable policies allow the insurer discretion in deciding whether to renew the policy at the end of the term. None of these options provide the same level of security as guaranteed renewable.