Pre-Exisiting Medical Conditions in Insurance Applications

The rising cost of inflation and advancements in medical technology are leading to potentially higher medical bills, making the lack of insurance coverage a paramount issue. Insurance coverage can alleviate large medical bills or provide income replacement if you are struck by a critical illness. It can offer financial help to you and your family during unfortunate circumstances. However, if you already have a pre-existing medical condition developed since birth or later in life before obtaining insurance coverage, what can you do?

What are pre-existing medical conditions?

Pre-existing medical conditions include diseases, illnesses, or injuries for which a registered medical practitioner has provided treatment, advice, or prescriptions before you obtain insurance coverage. Acute medical conditions like the common flu, cough, or food poisoning aren’t considered pre-existing conditions unless a specialist referral leads to a diagnosis of a medical condition.

How does pre-existing medical conditions affect my insurance application?

Insurance plans like Integrated Shield Plan or Life Insurance (for eg. Term Life Insurance or Whole Life Insurance) covers Death, Total and Permanent Disability (TPD) and Critical Illnesses (CI). Applicants must undergo Medical Underwriting, where underwriters will assess your health based on your declarations, and may request medical reports for further evaluation.

Types of underwriting outcomes

Having a Pre-existing medical condition should not stop you from getting your needed coverage. You can still purchase coverage for other parts of your healthy body! Here are some underwriting outomes that can happen if you have a Pre-existing medical condition:

Exclusions

Pre-existing conditions like Diabetes, High Blood Pressure, or Chronic Diseases like Obesity can limit an individual’s ability to obtain full insurance coverage for Death, Total and Permanent Disability (TPD), or Critical Illness (CI). Typically, insurance coverage will exclude certain conditions related to their declared pre-existing medical conditions. For instance, individuals with High Blood Pressure may be excluded from CI coverage for heart attacks or strokes, as the condition makes the heart work harder, increasing the risk. This is known as an “exclusion.”

Premiums Loading

Insurers can offer coverage without exclusions, but at higher premiums compared to “healthier” individuals. This is the best-case scenario, as your Pre-existing medical conditions will be covered by paying slightly higher premiums. This is known as “Premiums Loading.”

Rejection

In many worst-case scenarios, insurers may completely reject an individual’s application. For example, those with Mental Health Conditions or Congenital Conditions often face rejection for Integrated Shield Plans. However, MediShield Life still covers all Pre-existing medical conditions for Singapore Citizens or Permanent Residents. An additional premium of 30% is payable for the first 10 years for Pre-existing conditions listed on the MOH website. After that period, they will pay the same standard premium as others in their age group.

Read more: What are consider as Pre-exisiting medical conditions for Medishield Life

Diabetes, a common condition among Singaporeans, is often grounds for rejection by insurers due to its potential to cause various other medical issues. Most applications from individuals with diabetes will be declined. However, some plans in the market cater to those who already have diabetes as a pre-existing condition, though these typically come with higher premiums compared to other plans. Some of the available plans that offer coverage despite pre-existing conditions include:

Singlife Essential Critical Illness Plan
HSBC Cancer ReCover
TM #go TotalProtect Cancer
Etiqa Essential Cancer Care
Manulife Critical SelectCare
Chinalife Cancer Guardian

Should I declare my Pre-exisiting medical conditions during insurance applications?

‘If I don’t declare about my Pre-existing medical conditions, the insurer will not know.’

If you don’t declare your pre-existing medical conditions during the application, the insurer won’t know about them, and you’ll likely receive standard term coverage without exclusions or premium loading. However, issues arise when you file a claim. Claims officers will review your medical records and likely discover your pre-existing conditions. When that happens, insurers will refuse to reimburse benefits or approve claims related to those conditions. Your policy will be considered null and void. Therefore, it’s crucial to disclose all material information about Pre-existing conditions accurately during the insurance application process. Even if this leads to exclusions or rejection of your application, non-disclosure can result in even worse consequences, such as claims being denied or policies voided.

Which is the best insurance plan that I can take up?

This is the most common question an advisor gets from a client. Individuals with Pre-existing medical conditions now do not have the luxury to choose the insurers with the best premiums or features anymore. We will have to compare and see which insurer can now provide the individuals with a better outcome on its premiums and coverage based on the Pre-exisiting medical conditions declared.

However, all is not lost as Guaranteed Issuance Option (GIO) do offer plans like savings/ endowments or even investment plans to mitigate the case of large medical bills in the future. 

Ultimately, the ball is in your court; make the right decision to get yourself an insurance coverage when you are in good health, and your future self will thank you later. It is definitely more cost effective to purchase an insurance coverage 10 years early than a minute too late.

So, are you ready? Speak to our qualified Financial Advisors today and know your options before you are a minute too late!

Read more: 5 Best Term Life Insurance
Read more: 3 Best Integrated Shield Plan