What does the term "guaranteed renewable" mean in insurance?

The term "guaranteed renewable" in insurance specifically indicates that the insurer is obligated to renew the policy at the end of the term. This means that as long as the policyholder continues to pay the premiums on time, the insurer must offer to renew the policy regardless of changes in the insured’s health status or risk factors during the policy period.

This feature provides significant peace of mind to policyholders, particularly for health or long-term care insurance, as it ensures they can maintain their coverage without facing denial based on changing circumstances. The guarantee applies to the renewal of the policy itself, not necessarily to the premium rates, which could still be adjusted by the insurer under certain conditions.