We have had a number of enquiries recently about the new health insurance products hitting the market that are based on encouraging clients to claim.
In theory, being covered for GP visits and the like may seem like a good option - in reality you need to think about exactly how many times you would visit your medical professionals in a year. A factor to consider while doing this is that you can only claim around 60-75% of each visit, and that every different professional (i.e. Doctor, Dentist or Physio) has a capped claim amount.
These new products are all aimed at the 'younger' market. Consider this, you have a fit and healthy year (as a lot of 'younger' people do) and only visit your GP once, and have one dental check-up - let's look at the numbers:
So, you've claimed $78…..but you have paid around $260 over the year for your health insurance premiums.
It also pays to read the fine print - don't think you can automatically start claiming from day one - there are stand down periods of up to a year for some benefits (even though you are paying for the cover).
Generally, our advisers recommend a major medical policy which covers you for the big things. Any specialist consultations or diagnostic tests, private hospital stays and surgery are fully taken care of (less any excess) without having to wait for the public system.
When I think about having to pay a $50 doctor visit versus a $1,300 MRI scan, I know which one I would rather have covered!