5 Things Your Life & Health Insurance Policy Won't Tell You
Your life and health insurance policy is full of fine print. Here are five things most policyholders only discover when it's too late.
The devil is in the staging
Most life and health insurance policies pay out based on severity stages — early, intermediate, and major. What surprises many claimants is that a cancer diagnosis does not automatically mean a full payout. If your cancer is classified as early stage, you may only receive 25% of your sum assured.
Read your policy carefully. Look for the words "multi-pay" or "multi-stage". A multi-pay plan allows you to claim more than once — for separate conditions or different stages of the same condition. Standard plans typically allow only one claim.
Waiting periods apply even after purchase
Almost every life and health insurance policy has a waiting period, typically 90 days from the policy commencement date. This means if you are diagnosed with a covered condition within those first 90 days, your claim will be rejected.
Some conditions carry longer waiting periods. Certain cancers, for example, may have a 12-month waiting period in some plans. Always check the policy document — not just the brochure.
Pre-existing conditions follow you
If you have ever been diagnosed with high blood pressure, diabetes, or any chronic condition before purchasing your life and health insurance policy, there is a good chance your insurer has either excluded that condition entirely, or applied a loading (a higher premium) to cover it.
What many policyholders do not realise is that related conditions can also be excluded. A pre-existing heart condition might mean your policy excludes all cardiovascular-related claims.
The definition of a condition matters enormously
"Heart attack" sounds straightforward. But in your policy document, the definition of a heart attack may require specific elevation of cardiac enzymes, ECG changes, and other clinical markers. A mild cardiac event that your cardiologist calls a heart attack may not meet the contractual definition in your policy.
This is particularly important for stroke and major cancers. Always ask your insurer: what exactly must be true for a claim to be paid?
Premiums are not guaranteed
For many life and health insurance plans — particularly term policies — premiums can be revised by the insurer at renewal. This means the premium you pay at age 35 is not necessarily the same premium you will pay at age 50.
Review-able premiums are common in Singapore. If your policy has this feature, model your long-term affordability carefully. The last thing you want is to lapse a policy after years of paying premiums because the cost has become unaffordable at an older age when you are hardest to insure.