Health Insurance

Nothing is more important than the health of you and your family. And that’s what makes health insurance such an important part of your life. Unexpected health problems can impact your family’s life, lifestyle and finances. By Choosing health insurance you and your family can get on with enjoying life to the full, with the security of knowing that you have protection and options should you need them.

Did you know?

• More than 118,000 New Zealanders suffer from angina.
• Heart surgery waiting lists have doubled in the last five years.
• During this time, 60% of all insurance claims were for individuals aged 30–59.
• More than 2,896 people did not receive treatment within six months, despite being given a commitment to treatment.
• An average of 4,726 people a month have been waiting longer than six months for their first specialist assessment through the public health system.

Five important reasons to have health insurance

• You have a greater choice of when, where and how you get treated, in consultation with your doctor
• No added stress about how to pay for the health bills
• Avoid long delays in waiting for treatment in the public health system
• Cover now for many unknown health issues that may arise in the future
• Access to many of the latest recognised medical procedures and technology

Public health system vs private health insurance

While New Zealand has an established public health system, ther are limitations to what it can provide. For emergency treatment, the public system will provide you with immediate care. But for other health problems, even serious ones like heart surgery, you may have to be continuously assessed to remain on the waiting list. It may take months, or even years, to be treated. The effects waiting can have on you and your family can range from being inconvenient to devastating.

Private health insurance provides for those who don’t qualify for immediate treatment in the public system. It means you can choose to have treatment and access to provate healthcare when you need it. You don’t need to compromise your quality of life while you wait for treatment. You also won’t have to increase debst or reduce savings to pay for private treatment.

Can you afford not to have health insurance ?

To help you decide, we have highlighted some key points for you to consider about the potentioal impacts a health problem could have on your lifestyle, family and earning ability. We recognise makeing the right choice on which policy is not always easy, so we also look at what key factors to look for when choosing a policy. Ask yourself the following questions – they are important for you to consider.

Questions to think about ……..

I am currently in good health so what is the likelihood I will experience a health problem ?

Nobody likes to think they will experience a health problem, but the reality is, may of us will. Often the facts are before our own eyes. Who do you know who has suffered a heart attack, cancer, stroke, back or knee problems or has had private hospital treatment ? Reality is, we usually all know someone who has been in theis situation and it could just as easily be you in the future.

An individual has a 52% chance of having one of the following operations between the ages of 30-65. Cataract removal, hip or knee replacement, heart procedure ( including valve replacement, coronary bypass, angioplasty and angiogram ), hernai, prostate ( including prostate removal or prostate bryachtheraphy), hysterectomy, gail bladder removal or endometriosis.

If I experience a health problem, won’t the public health system look after me ?

For emergency treatment, the public syste will provide you with immediate care. but if you don’t need immediate or emergency treatment you will go though an assessement process and if you qualify for treatment you are then put on a waiting list.

• waiting may mean :
• Your condition could deteriorate
• Prlonged periods in pain and discomfort
• Loss of income because you can’t work
• Strain on your family through emotional and finacial stress
• Your life could go on hold until you receive treatment

An average of 3362 people per month have been waiting for longer than six months for their first specialist assessment through the public health system.

Could I cope financially if i developed a serious health condition and couldn’t work while I wait for treatment ?

If the unexpected happened, most people would want to cover their major costs such as mortgages, credit card debt, car loans, children’s education, childcare and day-to-day expenses ( food, electricity, rates etc). What costs would you need to cover ? Ill health and lack of health insurance is one of the five main causes of the people going broke.

Couldn’t I just self insure ?

Rather than paying premiums for private health insurance, some people believe they could afford private treatment if need be. With many hospital treatments now costing over $20,000, self insuring for this amount could be financially challenging.

A risk with self insuring is that you ( or another family member )can have a series of high claims close together and you have not had time to financially recover from the first. Most of us don’t take this risk with our cars or home and contents, so should we risk it with our most valuable asset – our health ?

Rather than taking the risk of completely self insuring, an option could be to share the responsibility with an insurer. By choosing only cover for major surgical events, you effectively self insure for all costs not associated with this cover. You could also choose an excess to further make the premiums more affordable.

How would I afford to pay for one of those expensive treatments without insurance ?

Many people do not realise the actual cost of private hospital treatment today. See diagram below, these costs are usually higher than most car or home and content claims. Having to pay for hospital treatment yourself can often mean :

• Taking out or increasing a loan
• Using savings or retirement funds
• selling assets
• Borrowing from family

How do I easily compare between different health policies ?

Making the right choice on which health insurance policy is not always easy. The aim is to find a good balance between cover and cost. Some key factors to look for in a policy are :

• High coverage lomits on both surgical and medical ( non-surgical ) treatment
• Provision for Non-Pharmac drugs coverage
• Worldwide Coverage
• Specialist and tests covered ( before and after hospital treatment )
• Clarity of what is covered and what is not
• A trusted insurer with a proven history as health insurance provider

Are you worried about you Pre-Existing Conditions………. We can possibly get you some cover which will cover Pre-Existing Conditions. For more information or a free no obligation review of your insurance needs then please contact us on 0800 50 7770 or harpreet@lifecyclefinancial.co.nz