Non-cancelable and guaranteed renewable. (Other less expensive policies with limited, if any, premium or renew ability guarantees are also sometimes available.) In the case of non-cancelable or guaranteed renewable policies, the insurer cannot cancel or refuse to renew the policy as long as the required premiums are paid on time.

The key difference between the two major types of policies is that under a non-cancelable contract, you have extra security that premiums can never be raised above those shown in the policy as long as the required premiums are paid.

With a guaranteed renewable policy, the premiums can be raised, but only if the change affects an entire class of policyholders. Everything you have or hope in the future is dependent upon your continued ability to work. The fact is your earning power is the one asset that allows you to have all the others.