Disability income plans which require that the insurer can never change or alter premium rates are usually considered

• A. Guaranteed Renewable
• B. Noncancellable
• C. Renewable
• D. Level Term

Answer: (B)

In disability income insurance, the way premiums can be adjusted is a key feature. If a plan is noncancellable, the insurer cannot cancel the policy and cannot raise premiums for any reason as long as the policy remains in force and premiums are paid. This guarantees the premium stays the same, which is exactly what the statement describes. It’s the strongest protection for the insured, though it usually comes with a higher price for the policyholder.

Guaranteed renewable, on the other hand, means the policy cannot be canceled, but premiums can still increase at renewal based on age or classification. Level term isn’t about disability income plans’ premium guarantees, and simply renewing doesn’t imply premiums are locked in. So the description aligns with noncancellable.