Final answer:
To protect against an insurer cancelling your disability coverage due to worsening health, you should look for a plan with guaranteed renewal of coverage. This ensures continuous protection as long as premiums are paid, a provision also supported by the Affordable Care Act for health insurance, which prohibits exclusions for preexisting conditions.
Step-by-step explanation:
If you are concerned that your disability insurer may try to cancel your coverage if your health becomes poor, you should look for a plan that offers guaranteed renewal of coverage. This term means that the insurer is obligated to continue your insurance coverage as long as you pay the premiums, regardless of changes in your health status. It's crucial because it ensures that your insurance policy cannot be cancelled simply because you become more likely to use the benefits.
Under the Patient Protection and Affordable Care Act, also known as the Affordable Care Act (ACA), insurance companies are prohibited from rejecting people for preexisting medical conditions, which was a common cause for lack of insurance coverage in the past. The ACA has fundamentally changed the health insurance landscape by providing health insurance for millions of uninsured Americans and by establishing health insurance exchanges that encourage a mix of both healthy and sick individuals to prevent adverse selection and maintain sustainable risk pools.
Guaranteed renewal is especially important in the context of disability insurance, as it offers individuals the certainty that they can rely on their coverage when they need it most, without the fear of losing it due to deteriorating health.