What does the term "nonrenewable" mean in the context of health insurance?

In the context of health insurance, "nonrenewable" refers to policies that, once they expire, cannot be renewed or extended for another term. This means that after the policy's coverage period ends, the insured individual has no option to continue the same coverage. This term is significant as it implies that the insured must seek new coverage if they want health insurance after the nonrenewable policy concludes.

Understanding the implications of a nonrenewable policy is crucial for individuals and businesses planning for their long-term healthcare needs, as they must ensure they have alternatives in place before their current policy expires. This concept differs from renewable policies, where the insured has the option to renew coverage at the end of the term, often subject to certain conditions.