Who may terminate coverage under a cancelable health insurance policy?

In the context of a cancelable health insurance policy, both the insurer and the insured have the authority to terminate the coverage. This means that either party can choose to end the policy under the terms agreed upon.

For the insurer, they can cancel the policy for certain reasons such as non-payment of premiums or a significant change in risk, as specified in the policy's terms. On the other hand, the insured, or policyholder, can also choose to terminate their coverage if they decide that they no longer need the insurance or if they find a better option.

This mutual right to cancel is an essential feature of cancelable policies, distinguishing them from non-cancelable policies, where the insurer cannot terminate coverage except under specific circumstances, and the insured remains covered as long as premiums are paid.

Options suggesting termination can only be done by the policyholder, the insurance agent, or the beneficiaries do not recognize the aspect of mutual agreement in a cancelable policy, which is why those choices are not correct. The involvement of both the insurer and the insured in the termination process maintains flexibility in the coverage arrangement.