What is a cancel-able policy in health insurance?

A cancelable policy in health insurance is characterized by the insurer’s ability to terminate the policy at any time, usually with a notice period. This means that the insurance company retains the right to cancel the policy for reasons stipulated in the policy agreement, which can include factors like non-payment of premiums or changes in health status. This flexibility for the insurer contrasts with other policy types that offer more security and continuity for the insured.

In contrast, policies that cannot be canceled by the insurer for any reason provide more stability for the insured, as they can rely on the coverage remaining in place regardless of circumstances, which is not the case with cancelable policies. Permanent policies that cannot be renewed or those with fixed benefits for life describe different characteristics and structures that emphasize the longevity or stability of coverage rather than the insurer's ability to cancel the policy. Thus, the definition provided in the correct answer accurately reflects the nature of a cancelable policy in the health insurance landscape.