Forum: Insurance policies bought decades ago may have outdated coverage
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I empathise with the writer of the Forum letter “ Read the fine print before buying an insurance policy
In my case, I have realised that insurance policies bought decades ago might contain outdated policy wordings or coverage.
Back in the 1990s, when I was in my early 30s, I took up a whole life with critical illness (CI) policy.
I am still paying the premium of that policy. However, I discovered that my CI insurance covers only heart bypass surgery for treatment of coronary artery disease.
Heart bypass surgery was the treatment of choice in the 1990s and angioplasty with stents was still in its infancy then.
The Life Insurance Association Singapore introduced a new CI framework in 2003 that included angioplasty with stents to treat coronary artery disease. However, the new CI framework applied only to new policies. Insurers can apply the 2003 CI framework to existing policies but are not obliged to do so.
I have also encountered insurance agents at shopping-mall booths advising policyholders like me to switch old policies like my whole life with CI policy to a retirement savings policy by forgoing the CI coverage.
I would advise those with CI insurance policies bought before 2003 to review and update or upgrade their policy while they are still healthy.
Andrew Tan Kok Chua
