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LLQP (Life Licence Qualification Program) Practice Exam · Question

Which renewal provision in a Disability Income policy offers the greatest protection to the insured regarding premium stability and contract terms?

A non-cancellable policy is the most favorable for the insured because the insurer cannot cancel the policy, change the terms, or increase the premiums as long

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Question: Which renewal provision in a Disability Income policy offers the greatest protection to the insured regarding premium stability and contract terms?

Answer options: ✅ Non-cancellable and guaranteed renewable.

  • Guaranteed renewable.
  • Cancellable.
  • Conditionally renewable.

Correct answer: Non-cancellable and guaranteed renewable.

Explanation: A non-cancellable policy is the most favorable for the insured because the insurer cannot cancel the policy, change the terms, or increase the premiums as long as premiums are paid on time, usually until age 65.

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