Insurance companies in Singapore have faced criticism for denying life insurance and other kinds of coverage to those dealing with mental health disorders, like depression and anxiety, even when it does not impact their physical conditions.
“I understand the risks of insuring someone who may be, for instance, suicidal, and therefore a threat to themselves,” Lui said. “But companies should not be denying insurance coverage to people with mental health disorders, even if it may be hereditary, because it will only discourage them from seeking help.”
“Almost all companies in Singapore do not cover mental health conditions at all, even if someone does not have pre-existing conditions,” he said.
Melita Teo, Chief Customer and Digital Officer of AIA Singapore, said the company hopes to “encourage more members of society to acknowledge mental health and psychological conditions as legitimate health concerns that require treatment and support”.“We agree and recognize that more can be done to address mental health disorders in Singapore,” Teo said. “We do not immediately reject applications from individuals with a history of mental health conditions. Our teams review each application on a case-by-case basis and do a thorough assessment based on their respective medical history and risk profile before an outcome is derived.”Teo added that the company launched Singapore’s “first and only” critical illness plan that provided coverage for five mental health disorders, highlighting that the sign-up rate has been a positive indicator of its success.Singaporean insurance companies said they are beginning to explore mental health plans, understanding the increasing demand for treatment. They denied immediately rejecting applications with mental health histories but admitted that the process is one that is still evolving.
He explained that mental health disorders may affect different people in different ways, making it difficult for companies to adopt uniform policies.“We cannot guarantee a person’s intentions when buying insurance so as harsh as it may sound, mental health patients are deemed a risk not only to themselves but to the pool of our other existing clients,” he said.“That is why most companies have to be very careful when insuring someone who is depressed or suicidal, not because we are ostracizing them but we have no genuine way of quantifying and verifying their intentions.”“When people approach insurance agents, our companies take on their risks by footing hefty hospital and medical bills to allow them to pay a small and fair premium,” Tay said. “I always try to look out for my clients and listen to their issues without any judgment. But it can be tricky when it comes to matters of the mind.”