Do I Need Health Insurance? Ask Susan
- This analysis summarizes advice from RNZ's Susan Edmunds regarding health, life, and income protection insurance.
- * Annual Review: It's sensible to review yoru insurances every year, particularly at renewal time.
- * Rising Costs & System Strain: Increasing health insurance costs and cancellations put pressure on the public health system and can lead to higher premiums for those...
Ask Susan Edmunds: Insurance Check-Up - Key Takeaways
This analysis summarizes advice from RNZ’s Susan Edmunds regarding health, life, and income protection insurance.
Key Experts:
* Susan Edmunds: RNZ’s money correspondent.
* Rebecca Styles: Consumer insurance expert.
* Tim Fairbrother: Rival Wealth adviser.
1. Insurance Assessment Frequency:
* Annual Review: It’s sensible to review yoru insurances every year, particularly at renewal time.
* Life Events: Meaningful life changes (marriage, divorce, having children, buying a house, children leaving home) are also triggers for review.
* Three-Year Adjustments: Consider making small adjustments to premiums every three years to maintain control over costs.
2. Health Insurance Considerations:
* Rising Costs & System Strain: Increasing health insurance costs and cancellations put pressure on the public health system and can lead to higher premiums for those who remain insured.
* Worst-Case Scenario Coverage: Focus on covering major, expensive medical events rather than attempting to cover all potential needs.
* Thorough Base Plan: Prioritize a comprehensive base plan that covers significant operations.
* Non-Pharmac Drugs: Crucially, include coverage for non-Pharmac drugs. These are treatments approved but not government-funded, and can be extremely expensive (e.g., $20,000/month for 6 months).They are relatively cheap to add to a policy upfront.
* Strategic Coverage: Don’t focus on covering lower-cost items like specialists, tests, dental, and optical benefits.These can add significantly to premiums without providing ample value.
3. Insurance types & considerations (Summary Table):
| insurance Type | Review Frequency | Key Considerations |
|---|---|---|
| Health Insurance | Annually/Life Event/3-Year Adjustments | Comprehensive base plan, include non-Pharmac drug coverage, focus on major events. |
| Life Insurance | Annually/Life event | Adjust coverage based on dependents and debts. |
| Income Protection | Annually/Life Event | Ensure adequate coverage to replace income during disability. |
Resources:
* ‘No Stupid questions’ Podcast: https://www.rnz.co.nz/podcast/no-stupid-questions
* ‘Money with Susan Edmunds’ Newsletter: https://rnz.us6.list-manage.com/subscribe?u=211a938dcf3e634ba2427dde9&id=b4c9a30ed6
* Email for Questions: questions@rnz.co.nz
– victoriasterling