No longer a luxury?

I have always considered Private Health Insurance to be a luxury, as opposed to a necessity. (Life, Trauma, Total Disability, and Income protection being a necessity)

However post Covid (or mid covid, as we are now) I'm beginning to change my thinking.

Why?

1) The Public health system is under increasing pressure. Waiting lists are becoming longer. Staff shortages don't help.

2) Elective treatments that were considered as important (as opposed to urgent) are "slipping down the list" and being postponed. Some may not happen at all, as it will be difficult to "catch up"

Statement from "NZ Doctor publication";

Public hospitals prioritise urgent and emergency surgery ahead of elective surgery, which results in elective surgery often getting 'bumped' for emergency cases. The COVID-19 pandemic has further increased the backlog of orthopaedic and other elective surgery throughout the country.

On another note. I'm sometimes asked what is Trauma Insurance and how is it different to Life Insurance?

Trauma insurance is sometimes called Critical Illness insurance and can be added to Life Insurance or indeed set up as a stand-alone policy. This is a benefit which will mean that if you are diagnosed with a defined serious condition like a heart attack, a serious cancer diagnosis or multiple sclerosis - then the insurance pays out a lump sum to give you some
breathing space while you recover.

This costs more than Life Insurance because you are more likely to claim, and many Trauma Insurance policies allow multiple claims too.

Don't hesitate to let me know if you would like more information on Private health Insurance or Trauma Insurance (or anything else for that matter!)

This blog is general information only. For specific advice in relation to your circumstances a Licensed Financial Adviser should be consulted