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Factors affecting your future premium
As premiums rise over time, a premium you can afford
at 40 may turn out to be unaffordable at 65. As new
treatments become available involving new drugs and
technology, costs of cover will rise. Insurance companies
increase premiums annually in line with Medical Inflation.
Premiums are mostly bracketed in tiers of 4-5 years
before increases. It may be noted that premiums for
those above 65 years old generally increase faster to
70 years old and beyond, rather than say from 25 years
old to 30 years old.
Premiums are clearly affected whether or not you take
out a Standard Hospital Plan or a Comprehensive Plan.
You may frequently enjoy a discounted price by agreeing
to a voluntary excess or by paying annually rather than
monthly. No claims discounts may also be offered and
clearly claims do make for more expensive premiums in
the long run.
Advisors at Medibroker Limited, an Independent PMI/PHI
brokerage, generally advise clients over 60 not to take
up new Comprehensive Plans but take out a Standard Plan
only with an excess. The costs simply grow so fast after
that age that it becomes almost non viable to take out
a new Plan that offers Outpatient care over the age
of 70. Cash Plans are now available to support such
Standard PMI Plans and can give a substantial support
to elder citizens for routine Outpatient cover, dental
and optical costs. A Comprehensive Plan is far more
appropriate, for example, for a married couple of 35
years old, both working, with three small children,
aged 5, 7, and 10 years old.
