The cost of health insurance

Further to the article "Wealth alone does not guarantee a happy retirement, we need our health as well"... being in good health and having the most appropriate insurance in place is just so very important to you at all stages of life.

What is very interesting and concerning as advisers, are the recent statistics out from the Health Funds Association of New Zealand in the last quarter to 30th September 2012 Claims paid were up 4.8%, now that may not sound like much, however in real numbers it means:

Claims paid in the 12 months to September 2012 totalled a staggering $863,000,000
An increase of $39,000,000 on the previous year.

"Growth in claims costs has been running at a high level over recent years due to increased demand, expansion of services funded, and medical inflation, although the rate of growth has slowed in the last year or two, mainly reflecting the fall in lives covered."


So whilst the number of us with health insurance is decreasing our need for health insurance is certainly high. There has been a significant reduction in lives covered among those of working age - and that is scary to say the least; because is that not when we need it most?

We work most of lives paying off our home, gathering assets, raising a family - and yet we take the risk of loosing some or all of it from not having the best possible cover to protect us, our family and our assets.

REVIEW vs CANCEL
We recommend that you always review your options of cover and never hastily cancel any insurance cover unless you are absolutely sure! As we age, it is natural that our premiums will increase, however so do products advance and our options increase.

There are simple things you can do to decrease your insurance premiums if there are budgeting constraints such as, taking a higher excess, or opting for a longer wait period before the cover pays out, or reduce the amount of cover.

Also, a product that you took out many years earlier, may not now be so relevant and there may be another product that would suit your current circumstances and be more cost effective.

What is the true cost to you
Health insurance is invaluable to us when we need it - the amount of money paid out in claims in the last 12 months is proof of that. How many families must have been affected? How many families have survived financially due to receiving insurance money?

As our previous article said "we can not self insure for a risk we can not quantify and unfortunately some people will get sick and require significant amounts of expensive medical treatment"... as the above claims amount shows - RISK is REAL.

Health Insurance is about swapping a relatively small monthly premium

for the certainty that as much cash as is necessary is

immediately available should you need it!

Insurance People Claims Service
We have a skilled claims team at Insurance People, we act on your behalf and deal with the insurance company and medical professionals to ensure your claim is processed as quickly as possible so that you can concentrate on recovery! We are here for you when you need us most - at claim time!

Insurance People offer free advice on all insurance - freephone 0800 823 823 today.

Wealth alone does not guarantee a happy retirement, we need our health as well

As advisers our aim is to help clients retire comfortably and with the financial freedom to enjoy it.

Mortgage Advisers help people during their working life to accumulate enough wealth to achieve a happy retirement and Insurance Advisers do their best to help people reduce risk!

A healthy lifestyle is important for all of us but even people living a healthy lifestyle can get sick and if we do, we may need very expensive medical treatment. The simple truth is we can not self insure for a risk we can not quantify and unfortunately some people will get sick and require significant amounts of expensive medical treatment.

Medical insurance is about swapping a relatively small monthly premium for the certainty that as much cash as is necessary is immediately available should you need it.

Planning...

• We have an aging population in New Zealand which means that free public health as we know it now it may not exist in 10 - 20 years;
• There are a number of things we can do to ensure we have the ability to pay medical insurance premiums in old age;
• The sooner in life we start doing something about health insurance the easier and more affordable it will be;
• A long term "living" plan will help rather than when it is too late!

When considering canceling or reducing your insurance you need to understand all your options and the consequences.

Mortgage People & Insurance People offer free advice on all  mortgage and insurance matters. We can not recommend enough the importance of reviewing your insurance!

freephone 0800 823 823  www.mortgagepeople.co.nz | www.insurancepeople.co.nz

Source: Full article available from the NZ Mortgage Magazine - written by Steve Wright, Technical General Manager Partners Life.

First Home Buyers Seminar

IMPORTANT NOTICE: First Home Buyers Seminar has been postponed...

Free appointments now available for all First Home Buyers with your local mortgage broker. Call freephone 0800 823 823 to book in!

Email us to find out when our next First Home Buyers Seminar is being held near you.

 http://www.mortgagepeople.co.nz/where-start

First Home Buyers Seminar

Buying your first home can be intimidating and it doesn’t necessarily get any easier after the first one either. By using a Mortgage People consultant you will receive honest unbiased advice and we guarantee to put you “our client” first. At Mortgage People we have been helping first home buyers realise their dreams of owning their first home since 1989, you’ll be surprised at how easy we make it and our service is free.

Are looking at buying your first home?
Book in for a chat about your home ownership dreams with our mortgage team 

 

Join us at our next free seminar:

 

 

Cover for your children

Following our blog on insurance for critical illness at the end of August (click here to view), we'd like to share some interesting facts on why protecting your children is so important.

The thought of taking out insurance for our children can be unsettling, as we don't wish to think anything could possibly happen to our little ones... but, for many parents dealing with a sick child is reality. To support the family financially - there are many options available for parents to add cover for their children to their existing insurance policy.

Examples of some of the Conditions covered include:
* Cancer, Stroke, Tumours, Head Trauma, Paralysis, Loss of limbs/sight or speech, Organ Transplant, Deafness, Chronic Kidney failure...

Examples of some of the Cover Options from various insurers for children*:
* First $10,000 of cover free
* Up to $75,000 per child from age 3 to 21 years
* Automatic cover for children aged from 2 to 18 years; up to $50,000 as a one off payment
* One off payments up to $200,000
* Up to 43 conditions covered with a lump sum payment of $50,000

The reason why you do need trauma insurance on you and your children is because many conditions don't leave you permanently or totally disabled but it does have... a significant impact on our ability to work, may require long periods of time in rehabilitation or hospitals, reduces your spouses ability to work and brings additional expenses.. such as travel costs, accommodation during treatment, extra child care costs or home nursing.

If your child needs you, receiving a lump sum payment from a trauma insurance gives you the financial freedom to take time off work to be there for your child when they need you most ... and it helps cover any other costs that arise.

click here to arrange a coffee & chat

freephone 0800 823 823  www.insurancepeople.co.nz

*All options noted are from a variety of insurers and are all subject to the specific policy words and any underwriting criteria.

Down to business

For most of you who have been with us for years, you know where we are located - no. 30 Ponsonby Road, the K'Road end next to Cafe People...

Don't worry we have't moved and nor are about too - we've just added our name to front of the building so that everyone else now knows where we are! And we've also got signs down the driveway so you no where to park!

Down to business...

The insurance industry, the products and benefits and features continues to evole - it's a big job keeping up to date with everything available and as a team we have training every week - this means you are getting the best possible, and importantly, most current and relevant advice from our team.

 

If you want to discuss or review your insurance, give us a call anytime - we offer a free insurance reveiw service to everyone.

freephone 0800 823 823 or click here to book a coffee & chat.

 

Click here to see the team > 

 

 

 

What's your plan?

"Don't allow death to take you by surprise"    read full article here
This was a headline that caught our attention in the past weekend's NZ Herald which had some very useful information that can make such a big difference. Getting your affairs in order while you are young'ish, fit and healthy just makes sense... leaving things till you're incapacitated or not done at all can create quite a nightmare for those left behind.

Have you thought about what would happen if ... you were unable to work again or prematurely died...

• What bills will be still need paying?
• Will your mortgage be paid in full or payments be met?
• How or where would you be buried; how would this be paid for?
• Who will take care of your children?
• Will your family be financially secure?

These are just some of the key areas that we as advisers help people make decicions on each day.

Ownership
Who owns your insurance policies?
Will the right money from a claim reach the right hands at the right time - when they need it most?

Funeral Cover
Depending on your wishes; have you any idea about the costs of a funeral and how your family will pay for this?
Some life insurance policies have a funeral component that can be paid promptly - does yours?
Do you know what you are entitled too - Work and Income have a funeral grant for people with limited means.

Financial Survival
Have you considered how your family will survive financially if you cease earning an income from being incapacited or prematurely die?
What additional costs (such as, child care) would occur if the home keeper was incapcitated?
Have you mortgage protection cover or income insurance?
What is the cost to you from not having insurance?

Are you self employed
Would your business continue to generate an income without you working in it?
Who will act on your behalf?
Would your family continue to receive income?
How will your shares/financial interest be distributed?

So, our recommendation is to have a review of your affairs - regularly!

Life changes and stuff does happen so at least annually sit down and complete a personal stock take of what's important to you & your family.

Book a review today - freephone 0800 823 823
or click here to book a meeting