Which type of renewability guarantees both premium rates and renewability for a health insurance policy?

The correct answer is noncancellable, as this type of renewability guarantees both the premium rates and the ability to renew the policy for its duration without the risk of rate increases. With a noncancellable policy, the insurer cannot cancel the coverage or increase premiums for the life of the policyholder, as long as premiums are paid on time. This provides the insured with the peace of mind that their coverage will remain in force at the same rate, regardless of any changes in their health status.

In contrast, other types of renewability do not offer the same level of protection. For example, cancellable policies allow the insurer to cancel the policy at any time, or to raise premiums, which can lead to unexpected loss of coverage or increased costs. Guaranteed renewable policies ensure that the policyholder can renew their coverage without medical underwriting, but the insurer retains the right to increase premiums based on the policyholder’s age or other factors. Term renewable policies provide coverage for a specified term and allow for renewal, but they typically do not guarantee premiums will remain the same. Thus, noncancellable is the type of renewability that best emphasizes both the stability of premium rates and the assurance of continued coverage.