Publication: Sunday Herald Sun
Date: 2 March 2008
Section: Money
Excerpt:
Desperate families are ditching health and other insurances to pay mortgages as home repossessions hit record rates. With 57 homes claimed a week by lenders and variable interest rates rising above 9 per cent with two more increases expected by July, mortgage stress is taking its toll. About 24 per cent of Victorian homeowners say they are finding it hard to keep up their repayments and are ditching health insurance and other discretionary spending, according to the Financial and Consumer Rights Council.Private health insurance premiums are set to rise next month. Experts say insurances are often the first to go in tough times, but it is a dangerous move.
Article summary:
Instead of dropping insurance and losing all your benefits, contact your insurance company to arrange a different repayment or find a better deal and change companies.
Dropping health insurance is a bad risk as you'll need to go on waiting lists again when you rejoin. Instead, increase your excess to decrease the premium or do some research and switch health funds to one you can afford.
"Website www.moneytime.com.au can help consumers hang on to their health insurance. Moneytime director David Miller urges families to find better deals.'We are very aware it's a discretionary purchase and that's why we spend time helping people compare products,' he says. 'You can change funds relatively easily. Things such as waiting periods are carried across from one policy to another.'
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