It does amaze me, but at the same time I find it pleasing, that friends and relatives discuss their health insurance over a drink or dinner.
Usually, that discussion is about one thing……cost!
On occasion this results in me receiving a phone call with questions such as “Why is “Fred” paying less than me for my health cover when we are a similar age? or “Jane” has the same policy as me so why am I paying more?”
Well for many of you I am sure it will not come as too much of a surprise when I say there are several factors to consider.
Here are just three: –
- Similar or same age; on what is generally an age related product so exact age is very important. Insurers can review their prices twice a year, so it will depend on what month of the year the policy was taken out as well as your age at that time.
- Rarely do I come across friends with two identical policies as we are not always comparing like for like, especially when we consider the different levels of cover available. Whilst the policy may have the same name, each policyholder may have different benefits, in particular, if it is a menu driven plan. It also follows that the excesses may be different.
- The underwriting. Some people will have been newly underwritten at the outset on Full Medical Underwriting or Moratorium each of which can be priced differently. Others may have been transferred on no worse terms and so can pay an even higher premium for that privilege.
There are so many reasons I could list but hopefully these examples will offer you an insight to what is involved.
It is for these reasons that I always ensure that all clients fully understand their cover and for peace of mind as part of the service always carry out a full market annual review.
If you are unsure about anything just give me a call on 0333 800 8009 or send an email to email@example.com