SG Budget Babe
Asked by Anonymous
Asked on 14 Aug 2018
I was a cancer patient more than ten years ago. I file a claim and surrendered my AIA and AXA insurance policy previously. I am now left with Aviva Whole life policy but exclude breast related disease even before I have breast cancer. I have contacted Aviva for lift up the exclusion in the policy document but no successful. Recently, I took up the Income Medishield Enhanced plan but again breast related disease exclusion.
What I understand about insurance is that if they know you have a medical history illness or a particular kind, they will always exclude it because the chances of it happening is higher. Insurance companies are a busienss entity after all, and they are playing against the game of probability to pay out claims vs collecting premieums
So it is unlikely they will lift this medical exclusion to avoid them from incurring huge financial loss. The other way round is that they will charge you exhorbitantly high premieums just to uplift the medical exclusion
Unfortunately that's how insurance works :( which is why buying early when one is healthy is SO important, but very few people think about insurance when they're healthy, sadly!
Alternatives would be government-led insurance such as MediShield Life. However, it is mostly insufficient if CI hits again.
Another option is that of moratorium underwriting, where you do not need to make health declaration but instead survive a waiting period imposed by the insurer. If no treatments, medication or symptoms of your pre-existing condition appears during this time, then your application may be approved. Unfortunately, this practice is not common in Singapore among most insurers.
Another resort would be that of international health insurers, some of whom provide coverage for pre-existing illnesses BUT they're often very very expensive!
Therefore I think the best alternative would be to self-insure i.e. save up and/or grow your money to cover your own costs.
Unfortunately there are not much alternatives besides saving more cash to ensure that you are financially ready should you happen to have a disease that is not able to be claimed.
Top Contributor (Jan)
It depends on the severity of the condition and the relevant medical reports from the doctor. Additionally, the underwriters will need to underestand the history of the condition, as well as whether you are taking medications or on follow-up.
You may be able to apply for a basic life insurance coverage. However, all these are subject to final decision from the insurance company or the reinsurer.
An alternative will be to work for a large corporation that offers good insurance benefits to its staff, including coverage for pre-existing conditions.
As a side note, you may wish to do proper financial planning and use wealth accumulation as a tool to cover the life insurance needs. In fact, this is how I do mine as I cannot get any form of life insurance coverage.
Here is everything about me and what I do best.
Moratorium underwriting will not work as cancer is a permanent exclusion.
Are you asking regarding medical/hospitalisation plans or plans that will give lump sum payout inevent of critical illness?
There are no individual medical plans in the market that will not exclude your condition if you are even accepted.