INSURANCE: CASESTUDY

Most New Zealanders purchase the wrong type of medical cover, giving little regard to the potential serious and expensive problems. The result of this is that many have a cover that provides for a percentage of all of their costs including Doctors and prescriptions but providing very low levels of cover for those serious problems. This is very much like insuring your expensive car against the need to replace its sparkplugs but leaving yourself to pay thousands of dollars in the event of a complete right-off. Is this what you would want?

Let's look at an example in your case..

Write these down!

• The annual premium you paid last year (example $1500.00)
• The amount you paid to visit your Doctor last year? ($300.00)
• The amount you paid for prescriptions last year? ($80.00)
• Total these up ($1880.00)
• Deduct from this figure the refunds you have received for these ($304.00)
• Our premium to insure your In-Hospital Care for an average family $645.00*
• This will leave you with $1235.00 to pay for your own Doctors & prescriptions for the year.

  Remember, in the above you only paid $380.00!

  Example profit = $855.00

  * While this is only an example, it is very realistic.