The public health system treats you promptly for acute life-threatening illnesses or serious injuries after an accident, but people with non-acute conditions are likely to be put on a waiting list. Here’s where health insurance comes into play.
This insurance allows you to bypass public waiting lists. As you get older, there’s an increased chance you’ll need non-urgent (“elective”) surgery.
Shopping around for health insurance still pays off, but the best option isn’t necessarily the cheapest. Here are our tips on ways to get the best deal possible.
Big picture
Don’t insure for day-to-day medical expenses. If you want health insurance, protect against the big risks with Hospital and Surgical Only cover. Comprehensive policies, which cover your everyday costs, are unlikely to be worth it. However, if the comprehensive policies are available through your employer at discounted premiums, then they may be worth considering.
Shop around
Choose a policy with high claim limits and as broad a cover as possible. Getting quotes from several insurers may uncover a difference of hundreds – even thousands – of dollars. Always carefully compare the deal you are being promised.
Higher ground
An excess is the part of each claim which you pay. Health policies can often be bought with a nil excess, but many companies offer reduced premiums if you opt for a higher excess. Take the highest you can comfortably afford to pay. The bigger the excess, the lower your premium.
Be a team player
Group premium rates, available through some employers and unions, can save you hundreds of dollars. If you join as a group member, you may find your pre-existing conditions are covered as well. Package discounts aren’t widely available, but look into it if you have other business with a health insurer.
Less is more
Some insurers offer a discount of around 5% for paying annually rather than monthly, and a 2.5% discount for direct debit payments. There may also be discounts for non-smokers with some insurers, for people with a healthy lifestyle, and for two or more people on one policy.
Sue Chetwin, CEO CONSUMER NZ
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