Guaranteed renewable health insurance

Dear Mr Tan,

If I buy a health insurance policy, and I made a few claims, can the insurance company refuse to renew my policy at the end of the year?

---------------------------

REPLY:

If the policy is a yearly renewable policy, the insurance company can refuse to renew your policy at the end of the period of insurance (ie one year), if you have made a few claims and is suffering from a chronic illness.

If you have a policy which guarantees renewal (regardless of your health condition), than the insurance company has to honour this promise. On renewal, you will not be loaded due to your health condition, but you may have to pay a higher premium based on your age.

Most of the shield plans in the market have this guaranteed renewability feature. However, the premium rate is higher than a policy does not provide this guarantee (i.e. insurance company can refuse to renew it).

For peace of mind, you should buy a policy that is "guaranteed renewable" up to a certain age, or for a lifetime.