{"id":348708,"date":"2026-03-26T11:17:21","date_gmt":"2026-03-26T11:17:21","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/348708\/"},"modified":"2026-03-26T11:17:21","modified_gmt":"2026-03-26T11:17:21","slug":"hannah-mcqueen-health-insurance-over-60-when-to-cancel-cut-back-or-keep-paying","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/348708\/","title":{"rendered":"Hannah McQueen: Health insurance over 60 \u2013 when to cancel, cut back or keep paying"},"content":{"rendered":"

It\u2019s a fair question, but it\u2019s the wrong one.<\/p>\n

When the numbers stop making sense<\/p>\n

At $12,000 a year, in three years you\u2019ve effectively funded a $36,000 surgery \u2013 more than the average private procedure in New Zealand.<\/p>\n

So the logic feels simple: save the money, cut out the middleman \u2013 especially when 6-25% of every premium dollar goes to them.<\/p>\n

Peter did exactly that: cancelled his policy, redirected the premiums into savings, and felt confident he\u2019d made the right call.<\/p>\n

Janice paused.<\/p>\n

Instead of cancelling, she asked her adviser, Abby Woollaston, a risk specialist and financial adviser, a better question: \u201cWhat am I actually paying for?\u201d<\/p>\n

\u201cThat small shift in thinking changes everything,\u201d says Woollaston. <\/p>\n

Why premiums rise (and why that matters)<\/p>\n

Insurance doesn\u2019t get expensive because margins rise \u2013 it gets expensive because claims do. The procedures needed later in life are more complex and costly.<\/p>\n

Data from Partners Life shows more than $68 million in claims paid to those aged 60 and older in a single year, largely driven by cancer, musculoskeletal, and cardiovascular conditions.<\/p>\n

That\u2019s the reality: older people don\u2019t just claim more, they claim significantly more, and the premiums follow.<\/p>\n

Much of this is preventable, yet very little of your premium goes toward prevention. And while many of these conditions aren\u2019t life-threatening, they still shape how you live day to day. <\/p>\n

Because what most people are really insuring against isn\u2019t death, it\u2019s decline. And when surgery is needed, they want to move quickly to the front of the queue \u2013 that\u2019s the peace of mind of insurance, even if it becomes unaffordable.<\/p>\n

\"HannahHannah McQueen is the founder of enableMe and founder\/CEO of Age Brightly. Photo \/ Michael Craig<\/p>\n

Peter\u2019s reality: The cost of going without<\/p>\n

Eighteen months after cancelling his policy, Peter came face to face with that reality.<\/p>\n

What started as a \u201cniggly\u201d hip became something more serious. It wasn\u2019t urgent enough to move him quickly through the public system, but it was serious enough to affect his day-to-day life.<\/p>\n

He hadn\u2019t saved the full $30,000 needed for the surgery. And even if he had, there were additional costs, including diagnostics, specialists, and rehabilitation.<\/p>\n

So he waited and adapted his life around it. The cost wasn\u2019t just financial.<\/p>\n

Janice\u2019s approach: Redesign, don\u2019t cancel<\/p>\n

Janice\u2019s outcome was very different.<\/p>\n

Woollaston quickly identified the issue: she was overpaying for convenience, not protection \u2013 dental, optical, GP visits, small claims. <\/p>\n

\u201cAll the things that feel good because you can use them,\u201d Woollaston says, \u201cbut financially, they rarely stack up.\u201d<\/p>\n

So they stripped her policy back. Janice kept the essentials (surgery, hospitalisation, major diagnostics), cut the rest and lifted her excess to $4000. Her premium dropped from just over $1000 to a little under $300.<\/p>\n

Within months, the savings covered her excess. After that, the difference went back into living and preventive care.<\/p>\n

Replacing a policy in your 60s is rarely viable because of pre-existing conditions. So, the goal isn\u2019t perfect \u2013 it\u2019s making what you have work better. Not just cheaper but more intentional.<\/p>\n

Set up differently earlier, Woollaston says, the outcome could have been stronger. More flexible policies, with higher excess options (up to $10,000) and waivers, can cut premiums by another third. Janice didn\u2019t have that option.<\/p>\n

That flexibility matters. You may not need it now but you\u2019ll want it later.<\/p>\n

The third scenario: When affordability wins<\/p>\n

For many people, a third scenario is the most realistic. It\u2019s driven by cashflow, not strategy.<\/p>\n

They understand the trade-offs, restructure … and still can\u2019t afford it.<\/p>\n

But cancelling without a plan is just defaulting into self-insurance, and that only works if you\u2019ve planned where the money will come from if you do need that future surgery.<\/p>\n

For some, that\u2019s savings. For others, equity, like a line of credit, acting as a backstop. It\u2019s not something you rely on day to day, but something that ensures you can access funds quickly if surgery is required.<\/p>\n

The two steps most people skip<\/p>\n

Before cancelling, Woollaston says most people miss a critical step. <\/p>\n

\u201cThey don\u2019t get a full health assessment before pulling the pin.<\/p>\n

\u201cAn evidence-based view of your health risks can highlight whether there\u2019s a surgery or issue on the horizon. Cancelling just before you need it can be one of the most expensive mistakes you make.\u201d<\/p>\n

The second miss: not realising how much cover can be adjusted. It feels like a dark art but this is where advisers add value.<\/p>\n

\u201cBe clear on your goal: keep the cover, make it affordable. Then get the adviser to map the options and trade-offs.\u201d<\/p>\n

The real question: does it fit?<\/p>\n

The real question isn\u2019t whether insurance is \u201cworth it\u201d, it\u2019s whether it still fits.<\/p>\n

Insurance isn\u2019t good or bad value on its own. It depends on how it\u2019s structured and whether it\u2019s kept up with your life. This is where people get caught: they set a policy in their 40s or 50s, then judge it decades later without ever adapting it.<\/p>\n

\u201cNot all insurance policies are created equal,\u201d Woollaston says, \u201cand it\u2019s something people tend to only realise when they need to claim.\u201d<\/p>\n

That\u2019s why the early decisions matter. <\/p>\n

\u201cA comprehensive review in your 40s and 50s can make a significant difference later on because that\u2019s when you still have the most choice,\u201d she says.<\/p>\n

And ultimately, it\u2019s that flexibility that determines whether a policy still fits years down the track.<\/p>\n

\"BuildingBuilding strength and mobility are important factors in staying well as you age. Photo \/ 123rf<\/p>\n

The final point: It\u2019s not just the policy<\/p>\n

Insurance doesn\u2019t keep you healthy; it gives you options when something goes wrong.<\/p>\n

The real investment is everything that reduces the chance you\u2019ll need it, like building strength and mobility, early detection of illnesses, and prevention. <\/p>\n

So, are medical insurers ripping off older people?<\/p>\n

It can feel that way when you\u2019re paying $12,000 a year. But more often, the issue isn\u2019t the price, it\u2019s that the policy no longer fits.<\/p>\n

Whether you end up like Peter, Janice, or somewhere in between isn\u2019t determined by the insurer. It\u2019s determined by what you do when you first ask, \u201cAm I being ripped off?\u201d and whether you\u2019re willing to look beyond the question.<\/p>\n

Abby Woollaston\u2019s Top 5 Insurance Customisation Tips<\/p>\n

Raise your excess to benefit from significantly lower premiums Strip back extras (like dental and optical) and focus on core cover for major needs (eg surgery access) Know your health risks early and prioritise prevention Review your policy yearly and gradually move toward self-insurance Talk to your adviser about reducing costs while keeping long-term cover in place\u2014this is exactly what they\u2019re there (and paid) to do. They understand your situation and should be able to present tailored options and trade-offs for you. <\/p>\n

Hannah is the founder and director of Age Brightly. She is also the host of The Next Bit podcast on iHeart Radio.<\/p>\n

Listen to her conversation with Abby, where they talk about the perils of health insurance over 60, what to look out for, and what you can do about it.<\/p>\n

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