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Fresh Marketing Approach to Health Insurance Required

Fresh Marketing Approach to Health Insurance Required

The number of New Zealanders covered by health insurance continues to decline.

Figures released from Health Funds Association of NZ shows that as at 30 September 2012 the overall decline in lives covered over the past four years was around 3% at a time when the Public Health system is becoming increasing unsustainable.

Des Morgan Director of online insurance broker Endeavour Select Services said that in these tough economic times the cost of private health insurance has put many consumers off protecting their families with medical insurance.

What is not widely known but readily available is that if you elect to take some of the risk yourself and voluntarily nominate an excess on your health insurance policy your premiums reduce substantially.

An excess is the amount of money you’ll need to contribute towards the total cost of any claim you make. If your policy excess is $1,000 and you have a health claim costing $12,000, the insurer will pay $11,000 and you’ll need to contribute $1,000.

Mr Morgan said the premiums are between 25% and 30% cheaper each year if you nominate a $1,000 excess as opposed to the standard no excess with your insurer.

As an example he said “a couple (Male aged 40 and Female Age 40 both non smokers) for a no excess policy with a major insurer the total premiums paid over a 20 year period amounted to $49,726 as opposed to $37,229 had they chosen a $1,000 excess. That’s $12,497 difference after 20 years he said and had that been invested it would more than pay the $1,000 excess in the event of a health claim”.

Having a higher excess still protects you against the bigger treatment costs, allowing you to self insure to a degree that you are comfortable with and able to handle he said.


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