Which type of health insurance contract allows the insured to continue coverage by paying premiums, with no unilateral changes by the insurer other than premium rate adjustments?

A guaranteed renewable contract allows the insured to maintain their coverage simply by continuing to pay premiums, ensuring that the insurer cannot make unilateral changes to the terms of the policy, aside from adjusting premium rates. This type of contract provides a strong level of security and predictability for the policyholder, as they have the right to renew the policy at the end of the term without facing additional underwriting or changes in coverage conditions, except for potential increases in premium rates. This is particularly advantageous for individuals who may develop health issues over time and want to ensure they do not lose their insurance coverage.

In contrast, a non-cancellable contract guarantees the insured can renew their coverage, but with the added benefit that the premium can’t be increased at all during the term, which may not always apply to guaranteed renewable contracts. Reentry contracts involve conditions under which coverage can be reinstated after a lapse, potentially complicating the original protections offered. Conditional contracts establish certain conditions under which benefits may be paid or coverage maintained, but they do not provide the same level of security as guaranteed renewable contracts in terms of ongoing coverage.