Disability Income✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Under an optionally renewable disability policy, the insurer:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Optionally renewable is the weakest renewability level. The insurer may refuse to renew the policy at any policy anniversary, with or without cause, though any coverage in force at the time of nonrenewal remains payable for benefits that have already begun. Because renewal is at the insurer's option, the coverage provides less long-term security and is priced accordingly. Understanding the renewability ladder, optionally, conditionally, guaranteed renewable, and noncancelable, is a core disability and health insurance concept.
Why the other options are wrong
- B) Lifetime renewal is the opposite of optionally renewable; this describes guaranteed renewable or noncancelable coverage.
- C) Health-status-based renewal terms describe conditionally renewable coverage, not optionally renewable.
- D) Optionally renewable does not guarantee renewal at all; the insurer may decline at each anniversary.
Memory hook
Optionally renewable = the insurer holds the renewal key. Each anniversary, coverage may end.