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Income Protection Insurance and Guarantee of Renewability

Your income protection insurance policy could be a complex document that you should carefully read and fully understand. You have to make sure the coverage is appropriate for you and would surely bring about protection you need in case specific occurrences happen and affect your ability to continuously generate earnings from employment. One of the delicate and important subjects you should be most familiar about is the one pertaining to ‘Guarantee of Renewability.’

The general definition in most income protection insurance products, Guarantee of Renewability refers to the right accorded to any policyholder to renew the policy regardless of whatever changes there could be involving occupation, health, or activities. The renewal requires payment of premiums that are still in accordance with contractual provisions stated in the policy. It is also a requirement that there should be no intentional non-disclosure or fraudulent misrepresentation.

Furthermore, the extent of Guarantee of Renewability could vary from one income protection insurance policy to another. Policyholders and consumers who are planning to buy a policy are advised to seek a specific income protection insurance product that provides greater certainty.

Important provisions that may affect a policy’s Guarantee of Renewability could be found in different sections of the terms and conditions. Some of those may not be necessarily found under the Guarantee of Renewability section. Reference to such guarantee may also not be limited to the provisions pertaining to ‘Termination and Employment.’

As mentioned, you should thoroughly and profoundly read the terms and conditions or the policy document of your income protection insurance.