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.
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