Speaker 1: 0:10

Hello and welcome back to the Home Loan Hub. Hello, rebecca, hi, good to have you back. Today we're going to talk about health insurance. Great, okay, we've covered life, we've covered mortgage protection. Now the big, big question here is around health insurance. Because we're in New Zealand, there is public health system. Why would someone want health insurance?

Speaker 2: 0:37

I think the big thing, especially the last few years, is that it's become more shown more in the media, especially the wait periods, how long it takes to get in to see someone. Obviously, emergencies emergencies you're going to get in. But if you have something seriously wrong with you and you have to wait months to see a specialist I don't want to be dark, but will you survive to see the specialist? Yeah, you know, I love how we laugh about this.

Speaker 2: 1:08

You have to laugh about it because it's so depressing, otherwise We've got to make it light.

Speaker 1: 1:13

But you're right, you're absolutely right. I mean the waiting list is horrendous. You, otherwise we're gonna, we're gonna make it light. But you're right, you're absolutely right. I mean the waiting list is horrendous. You know, it's three months, six months, two years. I mean I'm hearing of cases that people have to wait for years to get a hip replacement or to get, you know, certain scans done for various potential cancers or maybe not so it's horrific.

Speaker 2: 1:34

And even like the example of the hip replacement. I mean obviously that's not going to kill you, but it is severely affecting your life. You know the pain not being able to sleep because of the pain, your everyday function for two years. Imagine how horrible you'll feel at the end of that.

Speaker 1: 1:52

And your family around you. Yes, absolutely yeah, because if you're not happy within your body, if you're in constant pain, you're probably grumpy. You're probably taking your anger on others. Hopefully not, but the reality is, you know, people do get grumpy and do get angry because they can't do those everyday things that they used to enjoy.

Speaker 2: 2:11

Absolutely yeah. I mean you think about how you are on lack of sleep, even if it's not in pain like you just had a bad night's sleep. I mean I know I'm a bit more likely to take offense to things, so you can just imagine day in, day out, not sleeping well and dealing with the pain on top of it all. It's just yeah.

Speaker 1: 2:30

So where's the health insurance? Usually it's the cost. That's a factor, right, that's why people wouldn't get it, because otherwise everyone would love to have health insurance and, unlike America, you know, we don't have a compulsory health insurance here that people can still choose, because we do have the public system to cover. But in the case of, let's say, a young family, first-home buyers bought a house, at what point can they look at health insurance?

Speaker 2: 2:54

Health insurance is expensive, especially for a family. Multiple people I mean children are obviously younger, cheaper because they expect that there's not as much wrong with them. So really, budget doesn't work a lot of the time for first-time buyers. They can't look at it straight away. It's more a case of down the track, when they've got more disposable income or, say, interest rates have gone down and they've refixed and so they're not having to pay as much on their mortgage. It's really as soon as they can afford it. But reality is they're not going to be able to afford it for a bit at first.

Speaker 1: 3:28

Exactly. So at what point do you think they can start really looking at it?

Speaker 2: 3:32

It's a hard one because obviously things change with the economy and everything. I would just say keep an eye on it as soon as possible, because the younger you are, the less you've got wrong with you. Pre-existing conditions are a thing you know, so it's really it's a hard one because it is budget-based. End of day for them.

Speaker 1: 3:54

I would probably say, for instance, if the interest rates are going down and suddenly they're saving $50 a week or $100 a week on mortgage repayments because the interest has gone down, there are two things If you're not increasing your mortgage repayments to repay your mortgage faster, I would say redistribute that money and get health insurance, because then you're already not missing out on that money. Anyway, it's already part of your budget, it's coming out of your pocket, so you might as well shift it around and get health insurance, for instance.

Speaker 2: 4:27

Yeah, absolutely as soon as you have that extra or a pay rise, right Like you didn't have that money before. I mean, it'd be great to have to spend on fun things, but any change like that pay rises or, like you said, you know saving some money because interest has gone down. That's when you need to start looking at those other covers that you don't have, which is why we do reviews.

Speaker 1: 4:47

Yeah, it's funny. You know I was talking to this client of mine and I've been dealing with them for years. They were one of my original clients. They've been with me for the last seven, seven years and I helped them through buying the investment property. You know they both had really good jobs and then the whole time I've been talking to them about getting insurance, getting life insurance, getting something, and they're like no, we'll be fine.

Speaker 1: 5:11

You know, because they thought what can happen to them. And, of course, shortly after they bought one of the investment properties, they reached out to me and they said look, the guy had a cancer diagnosis and he was like stage three so he had to have surgeries, he had to have chemotherapy. It was just horrific and he had to quit his job and they had to have chemotherapy. It was just horrific and he had to quit his job and they had to sell one of the investment properties and that was going to be their retirement plan. And you know, when the lady reached out to me, she was devastated because she said to me I wish I listened to you and I wish I got that insurance, because now we're sort of starting again because they've sold the property to fund his treatment. And if they had the money, you know, for the insurance which they had, they had a lot of disposable income. They just thought nothing's going to happen.

Speaker 1: 6:01

And she said to me something that really stuck with me when they were in the hospital and he was getting treatment, there was another family next to them getting treatment, and this family they were already renting and they had nowhere to go and they couldn't even pay for their rent and she said at least in their case they could steal a foot to have their own home and have a roof over their head.

Speaker 1: 6:22

But they were looking at this family and you know, and she said in that situation nobody ever says I wish I didn't pay for my insurance. Like this are the moments where you realize insurance is needed for things like that, because then it means the quality of treatment is better, then you don't have to worry about your rent repayments or the specialist that you see. And they were able at least these guys had money to pay to see the specialist and to get the treatment. These guys didn't. So they had to wait for a really long time and also the quality, I think, of the drugs they were getting weren't as good. So with my clients, because they sold the property, they had the money for the treatment. The guy actually has made full recovery.

Speaker 1: 7:03

It's incredible, he went from, yeah, stage three to like absolute. He's absolute legend. I saw him the other day. He was passing by and um, and after he left I said to my staff this is the client you know that's happened to, and they couldn't believe it because he looks absolutely fine, he looks normal and he managed to bounce back. But he managed to bounce me because they had the funds to fund his treatment versus others that don't. And this is where this is why we're doing this, because because we want to educate people on options, absolutely, I think, the big thing, and especially with cancer, new Zealand, I mean we're getting better.

Speaker 2: 7:38

But the pharmac versus non-pharmac drugs is always a thing. Experimental treatments, all of that sort of thing, experimental treatments. Obviously it's not covered by the health insurance side of it, but at least if you've tried all the pharmacac, non-pharmac, all the options because you've got the health insurance, you know that you're not wasting your money that's the wrong word but you're not using your money on something that you'll need later on because you've got this cover to help.

Speaker 1: 8:04

And the interesting thing about insurances. What I find is, you know, yes, it's a lot of money, but actually when you look at how much you can get back in terms of repayment, like one drug I think could cost $10,000 just for one treatment, Absolutely, and you may need like six rounds of it.

Speaker 2: 8:24

Yeah.

Speaker 1: 8:24

So that's $60,000. Absolutely, and if you pay $500 a month on health insurance for you and your family, that's like 10 times more than what you're getting repaid. So it's.

Speaker 2: 8:39

I think it's because it's the whole. It's not going to happen to us thing.

Speaker 1: 8:43

Yeah correct.

Speaker 2: 8:43

So why am I paying this monthly amount? Because it's not going to happen to us thing. Yeah, correct. So why am I paying this monthly amount? Because it's not going to happen to us, we're not going to have to worry about it. She'll be right. Yeah, exactly, and so I mean it's exactly what you said with your client. That's exactly what they thought, and they've worked hard to get this investment property, to have this retirement that they planned, and now they're starting from scratch.

Speaker 1: 9:02

Yeah, they had to sell two properties. Oh wow, two properties Down to one. But now hopefully, once he's back to work, they're going to start again.

Speaker 2: 9:11

Well, and he was lucky that he's fully recovered right. Because even you put all this money in, there's no guarantee, and then the wife's left with no plan.

Speaker 1: 9:20

No.

Speaker 2: 9:20

He's not able to go back to work.

Speaker 1: 9:22

Exactly the other interesting thing I find it gives you options Like, for instance, I had to see a GP. Gp wait at the moment in our region is over two to three weeks, even a month or two months sometimes, but with the health insurance you have access to free with some health insurances I must add a little disclosure here Not financial advice you have access to the free uh care or the online online.

Speaker 2: 9:51

Yeah, yeah it was really cool.

Speaker 1: 9:53

I jump in, I select the time, the quick 15 minute appointment, but I managed to. You know, if I need blood tests, I can ask this online gp to send me a referral for blood test referral. Referral for this, that that. So it's really, really cool and fast to go and get those things done.

Speaker 2: 10:08

Yeah, absolutely. It's all those added benefits of health insurance, because people obviously think about the big things surgery which are obviously important but all these little things like being able to see that, even if it's online, a GP quickly, you can do that with specialists, with some insurers. There are so many added benefits to things.

Speaker 1: 10:27

Yeah, but I think one of the other cool products that came out and it really, really made me excited about health insurance again, because you know how we talked about cancer and we talked about health insurance and how health insurance is really expensive I think you know where I'm going with this One of the providers that we deal with came out with this product that only covers cancer and that makes your insurance three times cheaper. So in terms of you can't have a full health insurance but if you have anything to do with cancer, it will cover Absolutely.

Speaker 2: 10:59

Yeah, I mean, and you look at the stats and how predominant cancer is becoming and if it's not picked up straight away, whatever it is, that is the big one. So, yeah, you can't afford, like you said, full health insurance, but cancer is, I mean, thousands, like you said. Say, 60,000 is an example, 10,000, you know that's a massive amount and you're paying, like you said, way less to cover it.

Speaker 1: 11:23

So it is definitely a good option to have if you cannot afford the full amount so, for those that are listening, I'll repeat it again if you think that health insurance is too expensive and you can't afford the whole thing, but you want to have that plan b option of having a cancer care cover, we've got an option for you. So please feel free to reach out and we'll look after you. But yeah, because I think that's important, as you say. You know, it's like have something rather than nothing.

Speaker 2: 11:48

And then those people that maybe apply for health insurance and have so many exclusions they won't give you the cover but none of them relate to cancer. Then it's I'm not going to say a hundred percent, but you could get, still get the cancer cover. Yeah.

Speaker 1: 12:01

Correct, Correct. Awesome Rebecca. Anything else you want to add before we wrap up?

Speaker 2: 12:08

Putting me on the spot. I don't think so. You're getting better at this. Well, you know, take time. Soon you won't be able to shut me up.

Speaker 1: 12:17

Sounds like it. Thank you so much and I look forward to seeing you next time. Thank you.