Premium reduction across any form of insurance is generally associated with a reduction of cover. Health insurance is no different. With health insurance, it all boils down to paying for the services you require now or may in need in the future. Vague? Yes, but with wildly differing individual circumstances, there is no one rule for everybody.
Even so, there are ways to save by looking carefully at unnecessary coverage. An example of this would be for an established family with no further plans for more children. Is there still a need for obstetrics or reproductive assistance? Unless there is a change of heart or a little, unplanned miracle turns up, the answer would be no. This will, of course, mean that you have to find a policy with the other inclusions you want but not obstetrics cover. Another example would be in Extras Cover, if you find yourself only utilising the dental portion of your policy, perhaps move to a more dental-focused policy.At the end of the day, health insurance is a personal risk assessment over what services can be confidently removed due to the remoteness that they will be required.
The two traps to look for when deleting areas of cover are:
- Waiting periods may apply again if you add the deleted services to your policy in the future
- Full costs will apply if you find yourself unexpectedly need to use a service you had previously deleted
If you would prefer to maintain your current level of cover yet still reduce the premium there are a couple of options available. Stay with your current fund and increase your excess to reduce the monthly premium. This means that you will pay more if you need to go to hospital, so it is a trade off for the lower monthly premium.
The other option which is always open is to shop around. There is no shortage of options with health insurance providers and, just like any other financial product, your policy should be reviewed and altered, if necessary, on a regular basis.