The most common myths about insurance

Are you hesitant to get your health insurance sorted, or even reviewed, because of the myths you’ve heard? We've put together some of the most common insurance myths to help you understand why they’re often more fiction than fact.

1. Insurance is too expensive

For the average person in New Zealand, medical insurance is fairly affordable and often costs less per week than the coffee you purchase on your way to work. Of course this depends on your health history and your age, but if you get it sorted early, it’s likely to be more cost-effective in the long run. When you meet with a financial adviser, they take your budget into account and can balance your financial situation with the cover you need.

2. ACC will cover any health issues I have

ACC is designed to only cover any accidents you may have, not serious illnesses like cancer. New Zealand’s public health system may be better than many, but with the current staffing and resource shortages, there are also consistently long wait times for treatment. Having the right health insurance in place means you can have access to medication you need urgently, allowing you to receive treatment and recover faster.

3. I put an insurance policy in place years ago so I’m sorted

Whether you have medical cover, life insurance, or even House, Car and Contents cover, your life has likely changed since you put your policy in place. It’s important to review your cover regularly - if you need to make a claim, you don’t want to be left out of pocket because your policy doesn’t cover you for your current situation. You might also be paying for cover you no longer require, so it’s a good idea to talk to a financial adviser to review your cover.

4. I have too many health conditions so I can’t get cover anyway

Existing health conditions can make getting cover trickier, but it doesn’t automatically disqualify you from being able to take out an insurance policy. It’s best to talk to the professionals here because certain insurance providers may still cover some existing medical conditions. Even if there are some limits or exclusions, your adviser can talk you through them to help you get the best out of your policy.

5. Insurance doesn’t pay out anyway

This one is a very common myth because the media coverage of claims that go unpaid is, of course, much higher than that of claims that are paid. Claims can be denied for a few reasons, however if your policy is set up correctly, you shouldn’t have to worry about that happening. An insurance adviser can explain what your policy covers and what it doesn’t, and can offer support during the claim process to help you get it across the line.

Are there any myths we didn’t cover here? Get in touch with us today and we can help you understand the value of having the right insurance in place.