VHIS Renewal
Difference between guaranteed and annual renewal
Guaranteed Renewal
Once the policy is effective, as long as the policyholder pays the premiums on time, the insurance company must continue to provide coverage unconditionally, and cannot reduce the benefit items or add “exclusions” due to changes in the policyholder’s health or the number of claims filed.
Unless the policyholder decides to cancel the policy or reaches the maximum renewal age, the insurance company cannot refuse to renew the policy.
Annual Renewal
However, if the policy contains a “yearly renewal” clause, it may mean that the insurance company has the upper hand.
The insurance company has the right to request a comprehensive physical examination with a medical report when the policyholder reaches a certain age.
If the policyholder’s health deteriorates, or there is a poor claims history, the insurance company may adjust the benefit items, increase premiums, or even terminate the policy.
Even if customers whose policies have been terminated, and want to purchase another medical insurance policy, the premiums are usually very expensive, with more limitations to claims.
| Guaranteed Renewal | Annual Renewal | |
| Who has the upper hand? | The policyholder | The insurance company |
| Age limit to be protected | ✓ | ✓ |
| Affected by the health condition | ✘ | ✓ |
| Affected by the claims record | ✘ | ✓ |
Difference between annual payment and automatic payment
Whether it is “guaranteed renewal” or “annual renewal,” policyholders still need to fulfill their payment obligations. If the premiums are not paid on time, the policy may become invalid at any time. To facilitate customers, insurance companies offer diversified payment methods.
There are generally two types of payment methods: lump sum and installment. Lump sum means paying the entire premium at once, while installment can be annual, monthly, quarterly, etc.
Generally, a lump sum payment is cheaper than an installment, and an annual payment is cheaper than a monthly payment. This is because insurance companies invest the premiums to earn returns, and collecting a larger amount of fees at once is more convenient for investment. Therefore, insurance companies also give policyholders additional discounts.
In terms of payment methods, many customers choose credit cards for their rebates and can set up automatic payments to ensure that the payment is transferred on time before the premium due date, which is cost-effective and convenient.
Bowtie currently only accepts credit card payments, and the credit card must be under the policyholder’s name.
In addition, to create a more flexible insurance experience, Bowtie has adopted a monthly payment model to avoid binding our customers to a specific policy. Even if the customer decides to terminate the policy, additional fees are not required, and there will be no monetary loss when canceling the policy, which truly puts the needs and interests of the customers first.
Received a renewal notice? How to renew the policy?
Insurance companies usually send out renewal notices in written or email form about a month before the policy expires. The notice will list the renewal premium and renewal date, and any changes to the policy terms and benefits will be clearly stated for the policyholder’s reference.
Similarly, although “guaranteed renewal” policies do not consider changes in the insured’s health. However, if the insured’s occupation or residence changes, they have a responsibility to notify the insurance company proactively, and the insurance company has the right to request the policyholder to undergo a new underwriting process as a result.
It is worth noting that the insured person must comply with the terms and conditions of the plan and accept the changes made by the insurance company when renewing the policy. Otherwise, the insurance company still has the right to terminate the policy.
If the policyholder agrees to renew, they should pay the premium before the policy expiration date. If the policyholder does not intend to renew, it is recommended to inform the insurance company formally about the decision to avoid misunderstandings.
According to the regulations of the Health Bureau, all VHIS products on the market must guarantee renewal up to the age of 100. Therefore, Bowtie VHIS Standard also promises to renew up to the age of 100, even if the Insured person’s health changes or had a claims history.
Bowtie VHIS Flexi guarantees renewal until the insured’s death and does not have a lifetime benefit limit. In other words, the benefit limit is recalculated annually, providing comprehensive coverage for the insured’s entire life.
While Bowtie Pink also guarantees renewal until the insured’s death, it had there are annual and lifetime benefit limits because it provides full coverage* to the insured person.
- *The Bowtie Pink Voluntary Health Insurance series fully covers eligible medical expenses such as diagnosis, hospitalisation, surgery, and prescribed non-surgical cancer treatments (except in the United States), and is subject to annual benefit limits and lifetime benefit limits. If the claim involves confinement in a Mainland China Hospital unlisted in / a High-end Mainland China Hospital listed in the "List of Designated Hospitals in Mainland China" / confinement in a room higher than the restricted ward class / a pre-existing condition, the relevant benefit payable may be adjusted.
