What does the term “guaranteed” mean?
“Guaranteed” can refer to two possibilities. The first refers to the annual premium you pay on your policy. For example, a fully guaranteed 25-year term means that your premium is guaranteed to remain the same for a full 25 years as long as you continue to pay the premium. The insurance company cannot raise your premium for the length of the term. The second refers to the ability to renew your policy. This is especially important for hospitalisation and surgical policies. As far as possible, you should take up hospitalisation and surgical policies that guarantee the renewability of your insurance. Even when your health condition turns bad, the insurance company cannot terminate your policy, but would still have to honour your desire to renew the insurance with them without any additional exclusions or unfavourable terms imposed.
