Suddenly we are besieged by an army of ‘financial experts’ suggesting ways we can save money. Where were these people before banks and insurers went under? An expert is someone who becomes more knowledgeable on a small number of things as they age.
The worst suggestion some make is to cancel or cut back on cover on your international health insurance.
The last thing you need when far away from the UK is you or your family getting ill and finding that because you saved a tenner, you have no cover for your problem.
The urge to reduce medical cover can seem overwhelming, but resist it. Cutting out chronic disease cover could save you 10 or 20% on your premium, but nothing is simple as everyone disagrees on what conditions should be covered. You are unlikely to get cover for Alzheimer's, arthritis, heart disease, diabetes or asthma. Some do cover organ transplants and the ongoing maintenance for chronic illness. Every year we see the better insurers adding cover to widen the range of benefits.
Yes, you can reduce the likelihood of needing transplants or treatment, by having a healthy lifestyle. But even the fittest athlete gets ill. Chronic illness is becoming more prevalent with the World Health Organisation singling it out as the leading cause of death.
It does make sense to go through your policy and carefully consider each area of cover. Are you covered for something that you'll never need, such as maternity cover? Are there areas of cover you feel are not essential? Could you save money by having a higher excess?
Getting emergency treatment overseas and coming back to the UK, are both very expensive. You may cut back on cover by removing areas you feel are unlikely to happen to you. But before doing that, think what would happen if you did need treatment.
Every day we see in the papers stories of accidents. Many tend to be that unexpected event A coincided with unexpected event B, and was followed by unexpected event C. The sequence is unpredictable in advance. There are even scientific studies on probability that show most accidents are a combination of two or more improbable events.
Is it sensible to cut the benefit and save money? Saving money on premiums is tempting, but it is always a gamble – and do you really want to gamble with your and your family’s health?
International health insurance: Hot Topic: November 2008
