Which health policy type allows renewal without an increase in premium?

The noncancelable health policy is a type of insurance that guarantees the insured's ability to renew the policy without facing an increase in premium, as long as the premium is paid on time. This type of policy provides stability and predictability for the policyholder in terms of costs, as they can expect their premium rates to remain unchanged throughout the life of the policy.

In a noncancelable policy, the insurer cannot cancel the coverage or change the terms as long as the premium payments are made, which offers significant security to the insured. Many policyholders find this advantageous, especially those who may develop health issues that would make obtaining new coverage more difficult or expensive in the future.

The other options do not offer the same benefits. For instance, cancelable policies allow insurers to terminate the coverage or increase rates under specific conditions. Term life insurance primarily focuses on providing coverage for a set period and does not pertain directly to health insurance renewal terms. Universal life insurance, while flexible in terms of premiums and death benefit, does not inherently guarantee renewal without potential increases in cost.