The Insurance and Private Pension Regulation and Supervision Agency (SEDDK) has revised regulations affecting lifetime health insurance policy renewals.
The revised regulations are expected to be published in the Official Gazette shortly, after which they will take effect. The changes are expected to affect approximately 8m insured individuals, according to local media reports.
The current requirement for an uninterrupted three-year policy to qualify for a lifetime renewal guarantee remains unchanged.
The minimum age for obtaining the lifetime renewal guarantee in health insurance is set at 60. Therefore, when purchasing lifetime renewal health insurance, the renewal requirement requires the insured individuals to be at least 57 years old to be eligible for lifetime renewal health insurance at age 60 after the three-year waiting period expires.
Under the new framework, insurance companies will offer two types of policies to consumers:
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health insurance with a lifetime renewal guarantee, and
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health insurance without a lifetime renewal guarantee.
New premium ratio rule
Another significant change is that over three years, the premium a policyholder pays for health insurance should not exceed 80% of the amount the insurance company pays for the individual’s health expenses. When this requirement is met, the individual will have lifelong, renewable health insurance.
Once a lifetime renewal guarantee is obtained, the insurer:
Policyholders who have secured a lifetime renewal guarantee may switch to another insurer, but with the approval of their current insurance provider.