With the cost of everyday essentials, housing and household bills continuing to put pressure on Kiwi budgets, it's understandable that many people are looking for ways to cut back on expenses. Insurance premiums can be one of the costs that gets a second look, particularly when you're trying to make your money go further.
While cancelling your health insurance might seem like an easy way to save, it's worth exploring other options first. Having the right cover can give you access to private medical treatment when you need it, helping you avoid some of the uncertainty around waiting times and treatment costs.
The good news is there may be ways to make your health insurance more affordable without losing the protection that's important to you. Here are five things to consider.
1. Consider increasing your excess
One way to reduce your regular premiums is to increase your policy excess. This is the amount you agree to contribute towards an eligible claim before your insurance pays the rest.
A higher excess can mean lower premiums, freeing up some room in your household budget. Just make sure you could comfortably afford to pay that excess if you needed treatment.
2. Compare policies and available discounts
It's worth checking what different insurers offer, as premiums, benefits and policy features can vary. Some providers also offer multi-policy discounts, promotional deals or other incentives.
Rather than focusing on the cheapest premium alone, look at what's actually included. Check waiting periods, exclusions, annual limits and any additional costs so you know exactly what you're paying for.
Your financial adviser can help you compare options and work out whether switching providers makes sense for your circumstances.
3. Review your cover regularly
Your health insurance needs can change over time, so it's worth checking your policy every year or whenever your circumstances change.
For example, you might be paying for benefits you no longer need, or you may have cover that overlaps with another policy. Reviewing your level of cover and any optional extras could help reduce your premiums.
If you're considering changing insurers, remember that a new application may involve medical underwriting, and existing health conditions could affect the cover available to you.
4. Make healthy habits a priority
While maintaining a healthy lifestyle won't necessarily reduce your health insurance premiums, it can help support your overall wellbeing and reduce the risk of certain health conditions.
Regular exercise, a balanced diet, limiting alcohol and giving up smoking are all positive steps. Some insurers also offer health and wellbeing programmes or benefits, so it's worth checking what's available through your policy.
5. Check whether your workplace offers insurance benefits
Some employers and unions offer access to group health insurance schemes or subsidised premiums. These arrangements can sometimes make cover more affordable than taking out an individual policy.
If you're not sure what's available, have a chat with your employer or HR team. It's worth checking whether you could benefit from a workplace scheme.
Need Help Making Your Health Insurance More Affordable?
You don't have to give up valuable cover to reduce your insurance costs. Sometimes a few small adjustments can make a difference.
Our financial advisers can help you review your existing health insurance, understand your options and find a level of cover that suits your needs and budget.
Get in touch for a chat about your health insurance.