Should I Cancel My Health Insurance to Save Money?
Understanding why you should use a Financial Adviser?
Health insurance isn't a "set and forget" product. As your stage-of-life changes, so do your health needs, financial commitments and budget. That's why, as a Futurisk client, your insurance is reviewed regularly to ensure your cover continues to meet your needs and remains as cost-effective as possible.
We know that comparing health insurance policies can be overwhelming. Every insurer has different policy wording, benefits, exclusions and optional features. Our advisers spend the time reading policy wordings, keeping up to date with product changes, and comparing providers, so you don't have to. We help explain what your policy covers, identify any gaps, and recommend solutions that best suit your needs and budget.
Best of all, there is no additional cost to you for using our advice and annual review service.
Whether it's reviewing your existing cover, helping you understand policy wording, or discussing ways to reduce your premium, we're here to help you make informed decisions and ensure you continue to have the right protection in place, today and into the future.
Understanding your premiums and how to reduce them
Public healthcare provides excellent emergency care, but waiting times for non-urgent specialist appointments and elective surgery can be long and private healthcare can be expensive. Here is a list of some approximate costs of private treatment in New Zealand:
Hip replacement surgery: $35,000–$45,000
Heart bypass surgery: $80,000+
Cataract surgery: $4,000–$8,000 per eye
Some non-Pharmac funded cancer medications can cost well over $100,000
Five ways you could reduce the cost of your health insurance
Before you make a decision to cancel your health insurance cover, consider these possible ways to save on your premiums:
Increase your excess – If you're mainly protecting yourself against major medical costs, a higher excess may reduce your premium while still providing valuable protection.
Review your level of cover – Your needs may have changed since you first took out your policy.
Focus on what matters most – Some clients prefer comprehensive hospital cover, while others prioritise fast access to specialists and diagnostic tests or cancer treatment only.
Review your provider – Different insurers offer different benefits and policy features. A review may identify an option that's a better fit for your needs and saves you money.
Most importantly, don’t cancel your cover before speaking with your Futurisk Financial Adviser.
Understanding Trauma Cover
Alongside your health insurance, you may also want to consider Trauma Cover as an option. This means, if you are diagnosed with a listed critical medical condition such as cancer, or a heart attack, you receive the specified payout and can decide how to best spend it on your ongoing medical treatment, rehabilitation, or living expenses. More details in our next article - What is Trauma Insurance and How Does it Work?
Should I Cancel My Health Insurance to Save Money?
Recent media coverage has highlighted the rising cost of living including health insurance premiums. As we all attempt to tighten our belts a little, many New Zealanders are asking, “Is going without my health insurance one way to save money?” Before you make a decision on this, ask yourself, “Do I really understand my health insurance policy?”
You see, it's not just the premium that matters; it's understanding what you're covered for when you need it most, and what it might cost you if you don’t have medical insurance at a crucial time.
The good news is that rising premiums don't necessarily mean you need to cancel your cover.
Health Insurance Premiums Have Risen – But You Have Options
Understanding your policy
Every policy is different and there are often ways to make a policy more affordable while still maintaining valuable protection. Furthermore, every insurer offers different policy features, benefits and policy wording, so it's worth reviewing your cover and discussing it with your Futurisk Financial Adviser to ensure you are receiving value for money and to avoid unexpected surprises when you need it most.
At Futurisk, we work with a range of leading health insurers, including Partners Life, AIA, NIB, and Southern Cross. Each provider offers different policy features, benefits and strengths, so the best solution for you will depend on your individual circumstances and healthcare needs.
For example, some clients value Partners Life's Guaranteed Policy Wording, which means the policy wording is guaranteed when your cover begins and cannot be changed by the insurer in the future (subject to the policy terms and conditions). Others may prefer features such as AIA's Specialist and Diagnostic Tests option, Southern Cross's extensive Affiliated Provider network, or NIB's flexible hospital cover options.
The role of your Futurisk Financial Adviser is to help you understand these differences, explain your options, and recommend the cover that best suits your needs and your budget so you can make informed decisions with confidence.