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Even in normal times, we are sometimes tempted to cut our insurance expenses, especially when money is tight. After all, unlike a meal or a movie ticket, insurance is not something that you can use or enjoy when you have it.
So, in a recession, should you take your chances and skip your coverage? Our friends from Pacific Prime Hong Kong urge you not to do so, for a number of reasons:
1. Premiums tend to increase as a recession takes its course
In a recession, there will be a decline in total policy underwriting revenue as some customers scale back, or downright cut, their coverages. To make up for that, many insurers will raise their premiums. That’s why it’s smart to stay covered - your premiums are locked in before insurers ask for more from their new customers.
2. Life remains uncertain during a recession
While you may be tempted to skip short-term health insurance for your upcoming trip, what if you have a medical emergency and have to be repatriated during your trip? If such were to happen, a good short-term health insurance plan together with travel insurance would make a world of difference to you.
The same is true of all coverage types, not just those related to travel. That’s why saying that cutting insurance expenses is a way to save money is to see only one side of the coin: The other side is that if disaster strikes when you are not properly covered, you and your family could be left out in the cold.
3. Starting early has its benefits
Securing health insurance is relatively easy when we are young and healthy, and the premiums are also lower and the terms better. Many plans have lifetime renewal guarantees, provided that they are continuously renewed. Because of this, securing adequate health insurance at a young age (and keeping your coverage through thick and thin) means you will be properly covered for life.
If you stop your health coverage, not only will you lose coverage now, but you will normally be subject to the underwriting process all over again when you secure health insurance in the future. Your eligibility, premiums, and terms will be based on your age and health condition at that time.
Looking for health insurance that meets your needs?
If you are looking to secure or review your health insurance, look no further, because Pacific Prime Hong Kong is your ideal partner! With more than 20 years of experience, Pacific Prime is well-positioned to apply their expertise and experience in insurance, to provide unbiased advice that only a leading global brokerage can.
So,
get in touch with Pacific Prime Hong Kong to discuss your needs, or for a free plan comparison today!