What is meant by "guaranteed renewal" in insurance?

"Guaranteed renewal" refers to a policy feature that allows a policyholder to renew their insurance coverage without having to provide evidence of insurability. This means that regardless of any changes in the insured individual's health status or risk profile, they are assured that their policy will be renewed at the end of the term. This aspect is particularly valuable in ensuring continuous coverage, especially for individuals who may develop more significant health issues over time, making them harder to insure.

The other options do not align with the definition of "guaranteed renewal." The requirement for policyholders to submit claims annually relates to policy conditions rather than renewal rights. A special offer that reduces premiums does not directly connect with the concept of guaranteed renewal but instead pertains to pricing strategies. Finally, a clause that limits the duration of coverage periods does not reflect the assurance and permanence intended by guaranteed renewal.