Recently a client we’ll call David approached us to get quotes for insurance. David had a suspicion that he was overpaying for his international insurance so he contacted Tenzing to see his options and if he could save money. He had a good hospitalization policy from a reputable provider & wanted something with comparable benefits & terms:
- Fully covered hospitalization & surgery expenses
- Chronic conditions
- Cancer (inpatient & outpatient)
- Emergency Evacuation
- Freedom of treatment to select any hospital he’d like for major treatments
To be clear, there was nothing wrong with his current provider & he did not have any issues other than the price. During the consultation it was apparent that he had been oversold. Most likely this is because he bought insurance directly from the provider, rather than an unbiased 3rd party, such as Tenzing.
Insurance buying tip:
When you buy direct from an insurer you get offered what they have, not necessarily what’s best for you and at the best price. So unless you get quotes from many providers, it’s quite easy to be oversold. “You can get a comparable plan from our competitor for less money” said no insurer ever.
After being presenting a side-by-side comparison of multiple plans, including his original one, David selected a new provider with comparable benefits & terms. There was, in fact, money to be saved, namely in three key areas:
1. Current Annual Premium
So right off the bat, David saved $535 on this year’s premiums by switching providers. For a comparable plan, why is it that much cheaper you mas ask? A major factor has to do with coverage area.
Historically, most international insurers would offer Worldwide excluding the USA as the standard coverage area. There is a growing trend to offer SE Asia excluding Singapore as the standard coverage area. By doing this, you remove many expensive places for treatment such as Singapore, Hong Kong, Japan, Europe, etc.
2. Annual Deductibles
An annual deductible is the amount that you’re responsible for before the insurance kicks in. You may opt to take a deductible in order to save money on your annual premium. In David’s old plan he had a $4,250 annual deductible. With his new plan, that was lowered to $1,350.
To illustrate the potential savings, let’s see a couple scenarios:
Scenario 1: $5,000 hospital bill
- Before Tenzing this would cost David $4,250 & the insurer would cover the remaining eligible expenses
- After Tenzing this would cost David $1,350 & the insurer would cover the remaining eligible expenses
A $2,900 savings
Scenario 2: $2,500 hospital bill
- Before Tenzing David would pay $2,500 & still have $1,750 left on his annual deductible.
- After Tenzing David would pay $1,350 & have $0 left on his annual deductible.
A $1,150 savings
Over time & as more expensive medical bills accumulate with age, there is substantial savings here.
3. Future Premiums
In addition to this year’s premium, you should also factor in future premiums from your provider. Each one increases their rates in different age bands & at different rates of increase. In this case, there was a substantial difference between the expected future premium at his renewal next year:
Here’s David now
We know David is happy. Be happy with your premium too.
Get in touch to see if we can save you money on your health insurance. (New or renewal)
For more tips on how to save money, please read our article about How to Save Money on your Health Insurance