If an insurance company issues a Disability Income policy that it cannot cancel or for which it cannot increase premiums, what type of renewability describes this policy?

The type of renewability that describes a Disability Income policy which the insurance company cannot cancel and cannot increase premiums is referred to as "Noncancellable." This provision ensures that the policyholder retains the right to renew the policy for the life of the agreement without facing any changes to the premium rates or the ability of the insurer to terminate the policy.

With noncancellable policies, the insurer is obligated to renew the coverage as long as premiums are paid on time, providing the insured with peace of mind that their coverage will remain in force and that the financial commitment will not change due to rising costs. This is particularly important in circumstances where the insured may face health issues that could otherwise lead to increased premiums or policy cancellation in other types of plans.

In contrast, a cancellable policy means the insurer can terminate coverage at any time, while a guaranteed renewable policy allows for renewal but may permit the insurer to increase premiums based on certain factors. Term renewability, on the other hand, typically allows the policy to be renewed only for a predetermined number of years, after which it may not be available for renewal.

Thus, the term "Noncancellable" precisely captures the essential features of the policy in question—protection from cancellation and premium increases.