Conditionally Renewable Policy

Red Solo Cups filled with soda? Yeah, they can be washed and reused. Red Solo Cups with potting soil in them? Yeah, you’re pbobably not gonna want to use those again. They’re not renewable.

They were “renewable” with a rinse, based on a condition.

In insurance, a similar concept exists on whether or not your policy can be “renewed.” The notion of something being "conditionally renewable” might make you a little nervous, particularly as it relates to health and disability insurance.

This type of policy allows the insurance company not to renew your policy based on reasons they have to define in the contract. But rest assured: they are not allowed to refuse to renew your policy for any reason related to your current health.

However, the policy might state it can be canceled or not renewed under certain conditions, such as when the insured reaches a certain age, or is taking a new job that carries a lot of risk, such as firefighting or working with explosive chemicals or training toy poodles.

Sometimes they might let you keep the policy but will increase the premium. But, in general, conditionally renewable policies are less expensive to start with compared to policies that are non-cancellable.