Obviously our health is not something we should penny-pinch on. But having said that, value for money definitely counts when you’re looking for a new health insurance policy or reviewing an existing one.
Here are some helpful tips on how to make the most from the money you spend on health insurance.
The value comparison
There is a plethora of choice in the health insurance market – a large range of benefits and pricing. It can be tricky to compare apples-with-apples, and more importantly, how policies, benefits and pricing stack up against what you personally want your insurance to cover. As your insurance adviser, we have access to a range of providers and products in the market and can help you shortlist a range of suitable products, based on your specific requirements and budget needs.
Getting the excess right
Selecting the highest excess you can afford to pay can be – depending on your circumstances – a good way to reduce your premiums. But if you choose this approach, it’s important to remember that having a large excess could mean that you miss out on being reimbursed for lower-cost procedures – in other words, the cost of accessing your insurance (your excess), may outweigh the cost of the treatment.
Focus on the extraordinary as opposed to general care
One option is to take out ‘hospital-only’ or ‘hospital and specialist’ cover rather than comprehensive coverage for general medical costs (e.g. visits to the doctor). It all depends on how you want your cover to work – but this approach can mean that you can assign more budget to higher-cost risks (the often unforeseen medical events that life can throw our way), instead of spreading it across health services that the household budget can stretch to (again, for example, a visit to the doctor).
Know your no-claims-bonus threshold
Some insurers reward their customers by offering a low-claim bonus. To be eligible, customers need to remain below a specific threshold over a certain period of time. Needless to say, this certainly does not mean that you should avoid filing a claim when you need to. But it is good to know what your insurer’s no-claims bonus threshold is (if they offer it) so that you can weigh up the benefit of claiming against being eligible for a bonus.
Don’t forget direct debit
Setting up a direct debit is another easy way to save a few dollars. Don’t expect a huge sum (we’re talking about shaving 2.5 percent off your premiums), but as they say, even small amounts over time can amount to significant savings.
Check the extras
As optional extras usually increase the overall cost of health insurance premiums, it’s important to check that you’re not adding unnecessary coverage to the mix. Once again, we can work with you to help identify what you need and remove any unnecessary add-ons.
If you would like to learn more or would like to review your policy, we’re here and happy to help.
An Adviser Disclosure Statement is available free and on request