ISP Reinstatement and declaration

[Strikk]

My mum is a bit clueless when it comes to insurance/finance. Previously she purchased the ISP that can cover Private Hospitals and the corresponding rider. Few months ago, the insurer sent the policy renewal notice but as you know, old people they blur (or act blur) and never bother with it. Hence the policies lapsed in July.

I only discover this in October when I find it weird that I can't log into the insurer's app to view her medical coverage and upon digging further, i found out about the lapsed policy. I tried to login to the insurer's app because she had a very bad back pain, couldn't walk and had to go to the A&E to spend a night. She wasn't admitted and we paid cash for that visit. Initial diagnosis was just kidney stone (ultrasound was clear) but the doctor scheduled a follow up consultation and CT Scan in late November.

This is where I find her in a tricky situation. Meanwhile after the A&E scare, I initiated the reinstatement procedure, downgraded her to the public A class plan and rider and has successfully reinstated as of today. My question is, should we declare to the insurer about the upcoming scan and A&E visit during the lapsed-reinstatement period? I ask my Agent, but he say up to me. If we declare, definitely the insurer will ask us to submit the scan and if touch wood some bad things are found in the scan, it will be subjected to exclusion right. But if we don't declare, there will be one day where my mum will be admitted to the hospital for a final time and it is a gamble on how far and deep the underwriter will dig and look for excuses to not pay right. I'm leaning towards declaration and if the scan reveals anything bad, ill accept the exclusion or loading (not sure isp got loading)

 

[mummynew]

In my experience for all reinstatement cases, insurers will ask whether the insured (your mum) has any 'new' medical conditions from the period of lapse to the date of reinstatement application. Then the insured need to answer accordingly and up to the insurer whether to reinstate or to exclude etc.

If during the reinstatement application documentation process, there is no such question, then you maybe 'safer'.

 

[soneat]

My mum is a bit clueless when it comes to insurance/finance. Previously she purchased the ISP that can cover Private Hospitals and the corresponding rider. Few months ago, the insurer sent the policy renewal notice but as you know, old people they blur (or act blur) and never bother with it. Hence the policies lapsed in July.

I only discover this in October when I find it weird that I can't log into the insurer's app to view her medical coverage and upon digging further, i found out about the lapsed policy. I tried to login to the insurer's app because she had a very bad back pain, couldn't walk and had to go to the A&E to spend a night. She wasn't admitted and we paid cash for that visit. Initial diagnosis was just kidney stone (ultrasound was clear) but the doctor scheduled a follow up consultation and CT Scan in late November.

This is where I find her in a tricky situation. Meanwhile after the A&E scare, I initiated the reinstatement procedure, downgraded her to the public A class plan and rider and has successfully reinstated as of today. My question is, should we declare to the insurer about the upcoming scan and A&E visit during the lapsed-reinstatement period? I ask my Agent, but he say up to me. If we declare, definitely the insurer will ask us to submit the scan and if touch wood some bad things are found in the scan, it will be subjected to exclusion right. But if we don't declare, there will be one day where my mum will be admitted to the hospital for a final time and it is a gamble on how far and deep the underwriter will dig and look for excuses to not pay right. I'm leaning towards declaration and if the scan reveals anything bad, ill accept the exclusion or loading (not sure isp got loading)

1. This is why for H&S, it is best to put everything in GIRO mode and also track the annual deductions to ensure it stays in-force.

2. You mentioned you initiated the reinstatement procedure and it is already reinstated.
Depending on the insurer, a typical reinstatement process will either include submission the "reinstatement form" and/or "declaration of continued insurability".
At the minimum, it will have questions like:
a. Has there been any change in the life to be insured’s health condition (for example, staying or may be staying in hospital, consulting or may be consulting a doctor, receiving or may be receiving any medication, medical treatment, investigation or surgery) from the date your policy ended?
b Have you made or will be making any claims, including hospitalisation claims on any policy with us or any other insurer?

3. Did you declare your mum's A&E admission, diagnosis etc during the lapsed period when you fill up the reinstatement form?
- If so, and the insurer has readily accepted it without any exclusion, then there should be no need to declare anything after the reinstatement unless you are opting for pre-approval of claims (for certain insurers)
- If not, then the reinstatement form is technically invalid.

 

[Value.Matrix]

My mum is a bit clueless when it comes to insurance/finance. Previously she purchased the ISP that can cover Private Hospitals and the corresponding rider. Few months ago, the insurer sent the policy renewal notice but as you know, old people they blur (or act blur) and never bother with it. Hence the policies lapsed in July.

I only discover this in October when I find it weird that I can't log into the insurer's app to view her medical coverage and upon digging further, i found out about the lapsed policy. I tried to login to the insurer's app because she had a very bad back pain, couldn't walk and had to go to the A&E to spend a night. She wasn't admitted and we paid cash for that visit. Initial diagnosis was just kidney stone (ultrasound was clear) but the doctor scheduled a follow up consultation and CT Scan in late November.

This is where I find her in a tricky situation. Meanwhile after the A&E scare, I initiated the reinstatement procedure, downgraded her to the public A class plan and rider and has successfully reinstated as of today. My question is, should we declare to the insurer about the upcoming scan and A&E visit during the lapsed-reinstatement period? I ask my Agent, but he say up to me. If we declare, definitely the insurer will ask us to submit the scan and if touch wood some bad things are found in the scan, it will be subjected to exclusion right. But if we don't declare, there will be one day where my mum will be admitted to the hospital for a final time and it is a gamble on how far and deep the underwriter will dig and look for excuses to not pay right. I'm leaning towards declaration and if the scan reveals anything bad, ill accept the exclusion or loading (not sure isp got loading)

Just declare everything. You pay insurance for a peace of mind.

You lapsed, your own mistake liao. No choice 1. Reinstatement will exclude all conditions usually.
2. Clawback is even worst. Declare bankrupt?
3. Your medishield life is still active. Use that one.

The rest is questions not needed to ask. Simply because it's all black and white in the insurance contract.

 

[Strikk]

Ok. I guess the best policy is to declare. Thanks!

 

[a4973]

If "reinstatement" is still subject to loading and /or exclusions, isn't it materially the same as a new application?

 

[Value.Matrix]

If "reinstatement" is still subject to loading and /or exclusions, isn't it materially the same as a new application?

Different simply because new application can be rejected entirely, and more so since they had no client relationship at the start.

 

[mummynew]

The 3 lapsed cases I know of:

1. My sister - her ISP lapsed coz she shifted house and didnt update the insurer and so didn't receive the renewal notice = didn't pay. She didn't monitor her premiums. The time that she realised she was uncovered was when she needed to go for surgery maybe 3 years later (after paying premium for maybe 20 years for pte cover + rider).

2. My brother - his endowment lapsed due to same reason as my sis. He realised it about 1+ years later and reinstated it with payment of outstanding premiums + interest. Policy had since matured and payout.

3. A friend - a policy (remember was an ISP) lapsed coz he didn't want GIRO but credit card in order to get 'points' (last time premium payments were 'eligible' for 'points'). He cancelled his card and forgotten all about the premium linked to the card and somehow also didn't pay notice to premium notice etc. Re-applied and got into exclusion issues.

*Both my siblings were born in the late 50s and those in that gen seems more resistant to GIRO somehow.

 

[a4973]

Different simply because new application can be rejected entirely, and more so since they had no client relationship at the start.

I see, so reinstatement the insurer must accept though with / without changes whereas new application insurer can decline the application totally?

 

[Value.Matrix]

I see, so reinstatement the insurer must accept though with / without changes whereas new application insurer can decline the application totally?

Yes. Of course standard exclusion applies if you develop any illness during non-coverage period.

But at least can continue coverage for other conditions