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LLQP (Life Licence Qualification Program) Practice Exam · Question

In disability insurance, which renewal provision offers the client the most security regarding both coverage and future premium costs?

A non-cancellable and guaranteed renewable policy offers the most protection; the insurer cannot cancel the policy and cannot increase premiums for the duration

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Question: In disability insurance, which renewal provision offers the client the most security regarding both coverage and future premium costs?

Answer options:

  • Guaranteed Renewable only ✅ Non-cancellable and Guaranteed Renewable
  • Conditionally Renewable
  • Cancellable at the insurer's option

Correct answer: Non-cancellable and Guaranteed Renewable

Explanation: A non-cancellable and guaranteed renewable policy offers the most protection; the insurer cannot cancel the policy and cannot increase premiums for the duration of the contract.

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