Life and health cover: Is having both a good idea?

There’s peace of mind in knowing that you have a financial safety net in place for life’s ups and downs. But with so many insurance types to select from, it’s important to choose the types and level of cover that’s appropriate for your needs and budget. So, what about health and life cover – together?

Here are some key things to consider.

One life, more ways of protecting it

When you look at life and health insurance, it’s clear that each type of cover serves a different purpose.

Life insurance is designed to ease the financial burden on your loved ones in case you pass away or – depending on your policy – fall terminally ill. It pays out a lump sum to your beneficiaries which can be used to cover day-to-day expenses, meet financial commitments (e.g. their mortgage), and even fund education or retirement costs.

Health insurance, on the other hand, can help you stay healthy, afford unforeseen medical expenses, and get treated faster in the private sector. Some policies even provide cover for non-Pharmac funded treatments, including certain life-extending cancer medications that you’d otherwise crowdfund or pay for out of your pocket.

Are health and life cover a good fit for you?

Some people begin their insurance journey with health cover and take out life insurance when they start a family or buy their first home. Others get life insurance first and then consider health cover – everyone is different.

If your budget allows and your needs align, having a combination of both types of cover can make sense – especially if you’re raising a family or have aging parents who rely on you.

In these circumstances, getting life insurance could be one of the most important things you can do for your loved ones. For extra peace of mind, you can add private health cover to the mix, and even include your children in your health insurance policy. While they may not need it now, by insuring them while they’re young, fit and healthy, any conditions they may develop later in life are likely to be covered.

Tailoring life and health cover to your needs

Here are some quick tips to supercharge your protection using life and health insurance:

• Securing cover when you’re young and healthy. The healthier you are, the more comprehensive your cover may to be (as you are less likely to have developed pre-existing medical conditions that could be excluded from cover). Also, premiums on both type of insurances usually increase with age, so the younger you start, the lower your premiums are likely to be.
  
  In some cases, you may opt for level-premium life insurance. Level premiums don’t increase with age but may be significantly higher at the start of the policy, so affordability is a key consideration. Please get in touch to learn more.
  
  
• Adding trauma cover to your life insurance. If your budget allows, adding trauma cover to your life insurance policy can provide priceless peace of mind. While health insurance is there specifically to help you afford medical expenses, trauma cover provides a lump-sum payment upon diagnosis of one of the covered trauma conditions (including cancer, heart attack or stroke). You can use this lump sum as you wish – to pay for treatment, afford time off work or work through your bucket list.
  
  
• Reviewing your cover. As your life changes, it’s always important to ensure that your level of cover is aligned with your needs. Empty nesters, for example, may need health insurance to cover health complications but usually have fewer financial commitments to attend to. Or, as another example, children have left home and most (if not all) of the mortgage has been paid off, dialling back on life insurance could be an option.

We can help

Like to take a closer look at your insurances? Please don’t hesitate to contact us. We can help you secure and maintain the most appropriate level of cover for your family’s needs, goals and budget.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

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