Is Health Insurance Worth the Cost?

Read More

One of the biggest dilemmas for people with a limited budget is whether it is worth taking out health insurance. This group of people includes retirees, young people at the beginning of their career and couples with young families. For retirees the dilemma is magnified, because both claims and premiums escalate very quickly with age. In the event of an accident, emergency, or critical illness, the public health system generally provides an excellent standard of care. However, our aging population is putting severe pressure on health services which is only going to get worse. A shortage of resources can only mean longer waiting lists for non-critical treatment. The question of whether to take out health insurance is best answered by a thorough analysis of risks, probabilities, consequences and costs. Ask yourself these questions:

What are my risks? Your future health risks will be influenced by your previous health history and genetics.

What are the probabilities? Consider how likely it is that your risks will become realities.

What are the consequences? If you do become ill, are you happy to rely on the public health system? Delays may cause loss of income through not being able to work, further deterioration in health, and loss of enjoyment of life

What financial resources do I have?  By not paying for health insurance or having limited cover you are ‘self-insuring’ and will need funds on hand if you are not prepared to rely on the public health system.

The costs of health insurance can be kept down by buying it when you are young, before any health issues emerge which may lead to higher premiums or exclusions. You can restrict the cover to the more expensive and less frequent costs such as hospital and specialist treatment, and a high excess will lower premiums.

Related Articles

Economy
Liz Koh

Budget Winners and Losers

The latest Government budget had something for everyone but while most households will be a few dollars a week better off, there are some clear winners and losers. In the winners’ corner are businesses, those on high incomes, and savers. The biggest losers are property investors who have built large portfolios financed partly by tax rebates.

Read More »

Top Up or Miss Out

The end of June is an important date for KiwiSaver members. The financial year for KiwiSaver runs from 1 July 2009 to 30 June 2010 and if you have contributed at least $1,040 to KiwiSaver during that time, you will be eligible for the full amount of Government tax credit to be paid into your KiwiSaver account in July.

Read More »

Responsible Investing

There is a worldwide trend for investors to want to make a positive contribution to the world by investing in companies that are socially and environmentally responsible. If you are passionate about the effects of climate change, the scarcity of food and water, and social or environmental policies in general, then you will no doubt wish to ensure that the companies in which you invest are going about their business in a manner that is consistent with your views.

Read More »

Helping You Live your retirement To the Max

Keep in touch

Fill in your details and we’ll get back to you in no time.