An interesting opinion piece on Stuff.co.nz last weekend by Martin Hawes gave us some food for thought this week.
When times are tough financially, far too often we see that one of the first things to be cut is insurance costs. This is probably when you need it the most, especially medical insurance … so that if you become ill, you are not at the mercy of the public hospital system.
While standards of care are comparable with public vs. private, it is often the waiting times that can make the difference to your quality of life, and peace of mind.
Obviously, we think that having private health insurance is valuable; but acknowledge that it is a "two sides of the coin" scenario. Personally, I have only ever claimed once on my medical insurance in over 35 years, but continue to keep the cover as I think it's important to know that it is there if (and ultimately when) I need it. Conversely, we have really seen a significant increase in the amount of medical claims coming through BRAVEday recently. Last Friday alone, we began the process for five claims - which is more than we usually get in a week!
We often have clients that want to cancel their medical cover and will just "take it up again" when the purse strings are not so tight. What many don't realise is that this means a new application, and any medical conditions that they have had since they first took out their cover may be excluded from their new policy. It's important to know that if you currently have cover, and are having trouble meeting your premiums, there are more options available to you than just cancelling your policy.
If you are contemplating whether or not you need health insurance, making an informed decision is the key- remember that your adviser is there to help!