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Article 9 of 15 in Sample Disability Insurance Policy and Provisions Review |
Disability insurance renewal after age 65 |
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Disability income insurance policies can be non-cancelable, guaranteed renewable, or conditionally renewable, describing whether and how an insurance company can either cancel your policy or increase your premium after the policy is in force. The following provision explains the conditions under which you may be able to keep your policy in force after your Age 65 Policy Anniversary.
RENEWAL AFTER AGE 65
This policy ends on the Age 65 Policy Anniversary unless renewed. The Owner may renew this policy on a year to year basis after this date for life if:
- You are actively working outside your home full time at least 30 hours a week for at least 46 weeks a year; and
- The policy is in force with no premium in default.
We have the right to require proof you are working, but no other evidence of insurability will be required. The premium is not guaranteed and may be changed each year. The premium will be at our then current rate.
The Social Security Substitute Benefit and any attached riders will not be renewed after the Age 65 Policy Anniversary. |
COMMENT:
Beginning with your Age 65 Policy Anniversary (the first policy anniversary on or next following your 65th birthday), this policy goes from noncancelable to conditionally renewable. While your policy is noncancelable, you may keep your policy in force by timely payment of premiums and the insurance company cannot change the premiums or the benefits or cancel the policy. However, all of that changes at Age 65 Policy Anniversary. Then the policy becomes conditionally renewable. Conditionally renewable polices are effectively extended by the insurance company at each policy anniversary at the discretion of the company and subject to the wording in the policy provision.
The insurance company can cancel a conditionally renewable policy on any policy anniversary, but only if it does so by class, by geographic area, or for other reasons stated in the policy. However, even under conditional renewability, the insurance company cannot cancel your policy because your health is deteriorating.
The wording of this policy allows the policy owner to annually renew the policy beginning on the Age 65 Policy Anniversary for the life of the insured if two conditions are met each year:
- The insured is actively at work for at least 30 hours per week for at least 46 weeks per year; and
- The policy is in force with no premium in default.
However, the insurance company does reserve the right to increase the premium each year to their then current rate. This means that the rate will not be increased because of an individual physical condition. |
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