What is AVIVA Moratorium underwriting for health plan?

Last updated on June 6th, 2018 at 10:25 pm

 

The Aviva moratorium underwriting for its medical insurance plan may be a very unique solution to you. It does not need you to declare health status (which means faster application) and is really useful if you are seeking medical consultation on a condition now. Most medical insurance (IP plans) and even life plans (from my experience) will exclude or postpone your application in such an instance.

 

SERIOUS confusion about how it works by many

There are 2 main criteria before application (list is simplified).

 

Firstly, you (or person you intend to apply for) do not have the following list of pre-existing conditions that are permanently excluded under the policy. These conditions are quite severe in nature. ANSWER has to be NO.

If answer is YES, the AVIVA moratorium underwriting cannot be offered to you and you would have to do full medical underwriting. It will be hard for the plan to get accepted.

 

Secondly, you (or person you intend to apply for) were not deferred or declined an insurance beforeANSWER has to be NO.

If answer is YES, the AVIVA moratorium underwriting cannot be offered to you and you would have to do full medical underwriting.

 

STOP: Before you apply with other medical insurance (IP plan),  these questions may complicate your child’s application

1) Has the child ever had, or have been told or been treated for:

a. any respiratory disease, prolonged cough, bronchitis, asthma, heart problems, epilepsy or disorder affecting the nervous system?

b. any heart disorder, blood disorder, diabetes, endocrine disorder, liver disease or any gastrointestinal disorder, kidney problems, nephritis or abnormality of the genitourinary system?

c. condition affecting the sight, hearing or speech, physical or developmental defects, abnormal or premature birth or any cancer, growth, tumor?

 

2) In the past 5 years, has the child had any (other than for immunisation or vaccination) of the following tests done?

a. Blood test, Biopsy, Chest X-ray, CT Scan, ECGs, Cholesterol, Liver Function Tests, PAP smear, Ultrasound, Urine or other tests not mentioned. If yes, please specify the type of test done, date, reason and results of the respective test.

b. In the past 5 years, has the child had any (other than for immunisation or vaccination) illness, operation, medical advice, investigations or hospital treatment not mentioned above?

 

Implication

As you can see, basically if there are health conditions or extra assessments to be done on your newborn, it will not be straightforward to get medical insurance (IP plan) coverage. In bad situations, the insurer may defer or decline an offer to you.

This is from my experience.

A) Very pre-term child applying an IP with full underwriting – deferred

B) Polycythemia Neonatorum for child applying an IP with full underwriting – declined

C) Very high BMI applying an IP with full underwriting – declined

C) Pending surgical procedure applying for life insurance – deferred

Disclaimer: This is purely from seeing the experience of others. I do not represent the insurer’s underwriting team.

 

By then, even the AVIVA moratorium underwriting cannot be offered to you due to the second criteria.

 

If you (or person you intend to apply for) have passed the first and second criteria

but basically have some health condition,

the following chart may be interesting to you.

 

 

Why some conditions may become covered after 5 years but some conditions will still remain excluded.

Example: Child with a history of a broken arm

A simple conclusion would be for any medical bills relating to that broken arm (pre-existing condition) in the next 5 years will be excluded. Any new condition is ok. If there are NO symptoms/treatment/checkup etc on that broken arm in the next 5 years after signing up the policy, the condition would be deemed to pass the moratorium period and the condition becomes covered. IE treatment on that broken arm suddenly again after 5 years will be claimable.

 

Example: Child with asthma condition

A simple conclusion for any medical bills relating to asthma (pre-existing condition) in the next 5 years will be excluded. Any new condition is ok.

Since there are symptoms/treatment/checkup etc after signing up the policy, the condition would have failed the moratorium period and remain excluded. IE treatment on asthma before and after 5 years of taking up the policy will remain NOT claimable. It is not true that the asthma becomes covered after the 5th year.

 

Hopefully this helps to clarify the benefits of this plan.

Do click on the Whataspp button below to contact me if you have further questions.

 

If you are unsure how to insure for your newborn, contact me below

 

Do also check our in-house calculator for IP premium

Image credits: https://www2.aviva.com.sg/pdf/MyShield_MyHealthPlus_Brochure.pdf

Josh Tan

As a dad now, I have a new found perspective on financial matters concerning parents. I share many of the concerns that you have and as I search for answers myself, I'll share them through my articles. Being keen on investing and personal finance matters, I started a journey in the financial planning industry and have been blessed to share what I am passionate about for the last 10 years.