Renewal

Renewal is the annual continuation process for Australian insurance policies, where coverage extends for another 12-month policy term. Most Australian life, health, and disability insurance policies are designed as 'continuous coverage with annual renewal,' meaning they automatically renew unless you actively cancel or fail to pay premiums. Approximately 30-60 days before your renewal date, Australian insurers are required to send a renewal notice outlining the upcoming policy term, any premium changes, coverage modifications, and updated Product Disclosure Statements if terms have changed. For stepped premium policies, renewals typically include age-based premium increases. For level premium policies, renewals may include CPI indexation adjustments. Guaranteed renewable policies ensure that coverage will continue at renewal regardless of health changes, illness diagnoses, or claims made during the previous term - the insurer cannot refuse renewal or add exclusions based on changed circumstances. This protection is valuable in the Australian market where health conditions can develop over time. However, insurers can decline renewal in specific circumstances such as fraud, non-payment, or reaching the policy's maximum age limit. Some policies include guaranteed insurability options at renewal, allowing you to increase coverage without health assessments at certain life events. Understanding your renewal rights and obligations is essential - you should review coverage annually, compare premiums across the market, and ensure your insurance still meets your needs. Australian consumer law requires clear communication about renewal terms, any changes to conditions, and your rights to cancel or modify coverage at renewal without penalty during the cooling-off period.