Guaranteed Renewable (Health Care) Law and Legal Definition

A guaranteed renewable is a right available to a beneficiary upon which an insurer automatically guarantees to renew or continue a medigap policy to a stated age, such as age 65. A guaranteed renewable will be lost if the beneficiary makes untrue statements to insurance company, or commit fraud or defaults the premiums.

In guaranteed renewability, the insurer agrees to sell another policy to the beneficiary at the end of current policy’s term period and to charge a premium for the new policy which remains as untouched by the change in the insured person’s circumstances during the term of the current policy.

All health insurance policies provide guaranteed renewable coverage to its beneficiaries. At the expiry of the current policy period, the insurer will renew coverage irrespective of the health of the insured. Upon renewal the premium may be increased to include the expected experience for the individual rating class, but it cannot be increased on individual basis depending upon the deterioration in the beneficiary’s health.