For so many people, a financial plan is something they simply “set and forget”. Once it’s in motion and all the cogs are turning, they might go years before intentionally reviewing their full risk and investment portfolio. One of the oft-overlooked elements is medical cover, and this can become a serious risk when time has past without any updated considerations being reviewed.
The first benefit of medical cover is peace-of-mind, but this is not complete if your life (and those of your dependents) has changed since you signed up for your medical cover.
The second benefit is that you will be protected from potential financial ruin should your hospital bill be more than you can manage – but this is also not comprehensively accurate if you haven’t had a recent review.
It is important to be on a medical plan that suits both your monthly affordability and caters to most of your medical requirements. This means that we need to check in periodically and make sure you’re getting the best cover for your personal circumstances.
Since changing your medical plan or option can be costly, you need to change at the right time and for the right reasons. Here are some tips on what to consider when you rethink the suitability of your medical plans.
Change at the right time
It is advisable to change medical plans or options at the end of the year, so you get to access the full membership benefits for the new year. Changing at the end of the year also does not carry the penalty costs you would have had to pay when changing mid-year, but having said this, many medical plans do not allow for upgrades in the middle of the year.
Check benefit limits
It is important for you to know what your plan covers, especially if you or your dependents have chronic conditions or special medical requirements, but also to know where the limits will kick in. Almost all plans are updated every year, so even if your personal health needs haven’t changed, benefit limits may have.
For more serious conditions, it’s helpful to know if you can claim multiple times in the year and where your limits will start to attract co-payments or no longer be covered by your medical plan.
When changing to a new scheme, make sure that the benefits of the new scheme are a good match for the health conditions you and your family experience or are likely to experience.
Upgrading or downgrading options need to make sense
Moving to a higher or lower cost option within the same scheme also needs to make sense. It’s wiser to only change to a lower option because you have less risk and the benefits you need are still covered in that lower option, not because you want to save money.
Look for your favourites
As you rethink your medical plan, find out whether visits to your favourite GP will be paid for by you or the new scheme. Check if the GPs and specialists in your area are covered, in case your medical plan only pays for visits to someone across town or far from you.
If you’re feeling overwhelmed with how to make a change (or if a change is even needed), then let’s have a chat and see how we can work together to help you make a better decision.