Are you required to pay the additional 30% for pre-existing medical condition?

One very good benefit that CPF Medishield Life had included is to cover Pre-existing medical condition that are usually excluded, given extra premium loading or ,in some cases, having the case rejected by life insurance companies. These benefits come with a cost and that is an additional 30% on your premiums for 10 years. This amount in my humble opinion is ‘cheap’ because these are medical conditions which (to put it bluntly) insurance companies will not consider even if you are willing to pay the money.

The good news is not everyone that have a pre-existing condition will be asked to pay this additional loading.

The following are examples of individuals who will not need to pay Additional Premiums:

  • Those whose pre-existing conditions are less serious or are well-controlled, such as well-controlled diabetes, or hypertension with no complications, osteoarthritis, pre-cancers, fibroids or cysts.
  • Those who were hospitalised due to a one-off event, such as an accident or dengue fever.

Broad categories of serious pre-existing conditions that will be subject to Additional Premiums

Broad categories Indicative examples (not exhaustive)
Cancer Lung cancer, colorectal cancer, breast cancer, stomach cancer
Blood disorders Parkinson’s disease, Muscular dystrophy, Amyotrophic lateral sclerosis (ALS)
Heart or other circulatory system diseases Heart attack, Coronary artery disease, Chronic ischaemic heart disease
Cerebrovascular diseases Stroke
Respiratory diseases Chronic obstructive pulmonary disease
Liver diseases Alcoholic liver disease , Chronic hepatitis, Fibrosis or cirrhosis of liver
Autoimmune/ Immune System diseases Systemic lupus erythematosus, Human Immunodeficiency Virus/ Acquired Immune Deficiency Syndrome (HIV/ AIDS)
Renal diseases Congenital heart disease, Congenital renal disease, Biliary atresia
Psychiatric conditions Schizophrenia
Chronic condition with serious complications Hypertensive heart disease, Hypertensive kidney disease, Diabetes with kidney complications, Diabetes with eye complications

CPF will inform you by Oct 2015 if you are required to pay this additional 30% premium. Nevertheless, there is no need to worry about the premiums as there are enough subsidies schemes to ensure the affordability of Medishield Life.