So, you already have insurance and are thinking about switching coverage or upgrading?
We know the insurance market inside and out. With new solutions and promotions coming up all the time, there's never a dull moment in our world. But while there can be many good reasons to replace or upgrade your insurance, knowing the potential downsides is also key.
Read on to learn more...
Switching policies is not like changing power company
As you'll know, switching power companies is usually pretty straightforward: if you find a supplier who offers lower rates or a different service, you can switch and switch back as many times as you like. And if you've done your maths right, you may even save good money in the process.
But unlike choosing a power company, it's important not to judge insurance on pricing alone. In fact, temporarily saving money may not be in your best interest in the long run.
Instead, think value for money: a combination of what you need (based on your circumstances) and what you can afford. And if you already have cover, better add another key factor to the mix: your health.
Have you developed any medical conditions in the meantime?
Health issues, big and small, can happen to anyone, anytime. If you've experienced a medical event or have developed a medical condition after you took out your policy, then that's likely covered under your current insurance plan.
But if you decide to switch policies or providers, you need to know that your medical condition will be considered "pre-existing" for the purpose of your new cover, which means it may lead to a higher premium or be excluded altogether.
Not ideal if you're switching to save money, and you're also likely to end up with a lower level of cover. Of course, we're not saying that switching policies is always ‘risky' - but it's crucial to be aware of what this move involves.
What about policy upgrades?
If you choose to stay with the same insurer and upgrade your plan, keep in mind that some policy upgrades (for example, adding cancer cover or extra coverage for non-Pharmac funded treatments) require you to go through another application process, which may ask details of your medical history. Once again, new medical conditions or events you might have developed will be considered "pre-existing" for the purpose of the policy upgrade.
Having said that, depending on your situation, upgrading your policy may still make good sense. For example, you may be able to increase your allowance for certain treatments or secure important features. Once again, price alone doesn't tell the whole story; while keeping affordability in mind, make sure you take into account your protection needs and goals.
Like to change and not sure where to start?
Start here - our handy quote compare tool can give you an idea of what NZ's top insurers have available. But before you go ahead with your application, we welcome you to give us a call on 0800 800 400.
Switching or upgrading your cover is an important decision, and our friendly insurance advisers are here to help you make an informed one - based on what you have, what you'd like to have and what is suitable for your situation and objectives.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.