Seth’s Blog on Finance

Aviva MyShield Moratorium Underwriting

Aviva’s MyShield is currently the only Medisave-approved integrated Medishield policy of the 5 offered in the market to offer Moratorium Underwriting alongside the more traditional Full Medical Underwriting option. Full Medical Underwriting requires the applicant to fully disclose material facts of his medial history and conditions. The insurer will then decide whether to exclude declared pre-existing conditions or even decline the application.

Moratorium Underwriting does not require any declaration of medical conditions. Instead, the plan is issued with a 5-year period known as the Moratorium:

Pre-existing conditions (as defined in the policy) are excluded unless the person has not in relation to a pre-existing condition:

• experienced symptoms;
• sought advice or tests from a Physician, a Specialist or Alternative Medicine Provider (including checkups for that Pre-Existing Condition);
• required treatment or medication; or
• received treatment or medication

If so, the pre-existing condition will be covered under the policy after the Moratorium period. If any of the above was experienced during the Moratorium period, the pre-existing condition will be permanently excluded from the policy. It is also important to note that there is a specified list of pre-existing conditions that will be excluded permanently regardless of what happens during the Moratorium.

[hidepost=0]While it is relatively easy to prove that one has not received any treatment, medication or sought tests from a medical practitioner, it can be disputable whether or not one has experienced symptoms in relation to a particular pre-existing condition. Some medical conditions have symptoms that are not easily discernible by the person suffering from it. For instance, a heart valve condition’s symptom could be regurgitation, which a doctor detects using special equipment.

Thus, for most pre-existing conditions, one has to assume that they will be excluded. One has to accept the fact that pre-existing conditions are pre-existing and hence difficult or even impossible to find insurance coverage for, be it Moratorium or Full Medical Underwriting.

So what is Moratorium Underwriting useful for? In my opinion, the greatest use for it is to get guaranteed medical coverage (aside from pre-existing conditions) so that any new condition that occurs after the commencement of the coverage is covered. If the person passes the Moratorium and manages to cover the pre-existing conditions, it is a bonus.

Someone who has had cancer before may not be able to apply successfully for an integrated Medishield policy under Full Underwriting even if he is okay with an exclusion on his pre-existing medical history, but it is very likely that insurers will decline the case completely instead of imposing exclusions. With Moratorium Underwriting, cancer will be permanently excluded (it falls under the list of specified conditions that are permanently excluded), but all new conditions will be covered.
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It is pertinent for people with certain medical histories and/or conditions to find out about Moratorium Underwriting. Some may apply for Full Underwriting with other insurers only to be declined. Moratorium Underwriting will not be offered to those who have been previously declined for other insurance applications. One will find it difficult to apply successfully for an integrated Medishield policy since he is simultaneously declined under Full Underwriting and not eligible for Moratorium Undewriting.

Please seek personal advice by consulting a financial adviser. This post does not form any agreement between you and Aviva or any other insurer. Refer to the Product Summary/Policy Document for specific terms and conditions.