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The anniversary of your health insurance policy is a great time to take another look at the cover you have, make sure that it suits your needs, and understand what’s changing.
There’s every chance that you may experience an increase in your premiums. We understand that any increase can be concerning, so we want to explain the factors contributing to these changes, as well as the support available to you.
To help you with this, we’ve asked our partner, Monument Insurance, to explain the reasons behind rising premiums and how Monument Advisers can support you in navigating these changes.
Reasons for Premium Increases:
The increase in insurance premiums can be attributed to several interconnected factors. Understanding these can transform an overwhelming situation into an opportunity for informed decision-making. Let's explore the primary contributors to premium hikes, which include age, inflation, claims history, public health demands, and rising medical costs. By shedding light on these elements, we aim to empower you with knowledge, enabling you to make the most suitable decisions for your insurance coverage.
Age of Insured Persons
As we age, the likelihood of requiring medical care naturally increases. This is a standard consideration for insurers when calculating premiums. Age is a significant factor because older individuals statistically face more health challenges, necessitating more frequent and costly medical attention.
Inflation
Inflation also plays a pivotal role in premium adjustments. The rising cost of goods and services, including those in the healthcare sector, directly affects insurance costs. From medical supplies to healthcare provider fees, inflation drives up expenses across the board, necessitating higher premiums to maintain comprehensive coverage.
Claims History
Claims history is another critical element influencing premium rates. The frequency and severity of claims filed across the insurance industry can impact the overall cost of coverage as covered in another of this month's articles. If there is an uptick in claims or if claims become more costly, insurers may need to adjust premiums to sustain the insurance pool.
While it might seem like a daunting aspect, being aware of how claims history affects your premiums can provide you with a clearer picture of the insurance landscape. This transparency helps you understand the broader context in which your policy operates.
Public Health System Demands and Their Influence
The health insurance industry has absorbed a significant number of claims due to the increased demand on public health systems. This has been particularly evident in recent years, where the strain on public resources has led to a higher reliance on private insurance.
Rising Medical Costs: What You Need to Know
The cost of medical procedures and surgeries has been on the rise, reflected in prior approvals and surgical claims. This increase is due to advancements in medical technology, higher operational costs, and the need for specialised care.
In the past, many insurers have absorbed these increased costs to minimise the impact on policyholders. However, it appears that many have reached a point where it is necessary to adjust premiums to maintain the quality and availability of coverage.
How we can help
Navigating Changes with Monument Advisers
Navigating the complexities of insurance can be challenging, but you don't have to do it alone. Monument Advisers are here to support you every step of the way. We offer personalized assistance to help you review and adjust your insurance coverage, ensuring it meets your evolving needs. Our advisers are equipped to discuss premium payment structures that might better suit your financial situation, providing you with options that offer flexibility and peace of mind.
At Monument Advisers, we pride ourselves on being supportive, trustworthy, and down-to-earth. Our goal is to offer authentic guidance that empowers you to make informed decisions about your insurance. If you're feeling overwhelmed by premium changes or want to explore your insurance options, please feel free to contact us to schedule an insurance review.
As a HealthCarePlus Member, you can talk to a nationwide team of Monument financial advisers who can provide you with personalised advice on Health and Life Insurance.
Monument has been our appointed business partner since the early 1990’s to provide financial advice to our members on life and health insurance products (HealthCarePlus is not legally able to provide financial advice).
They are the experts and can talk specifically about your individual needs. Plus they have access to all the main New Zealand insurance providers so can explain which of their many plans are best suited to your needs.
So to speak directly to your local Monument adviser, please click the button below to book a free, no obligation chat with them.
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