What does a non-cancellable individual policy allow for?

A non-cancellable individual policy is designed to provide a level of security for the policyholder. The key feature of such a policy is that the insurer cannot cancel the policy as long as the premiums are paid on time, nor can they increase the premiums for any reason related to changes in the insured's health or other factors. This means that once the policy is in force, the terms are guaranteed for the life of the policy, which provides peace of mind to the insured. This feature is particularly beneficial for individuals who may develop health issues later on, as they can retain their coverage without the risk of cancellation or increased costs.

In contrast, other options refer to scenarios that do not align with the protections offered by a non-cancellable policy. For instance, the ability for the insurer to cancel the policy at any time or to modify premiums yearly contradicts the fundamental nature of what makes a non-cancellable policy attractive. Additionally, the stipulation that coverage ends at a specific age, such as 65, does not generally pertain to non-cancellable policies, which tend to allow for continued coverage under the agreed terms without arbitrary termination based solely on age.