Case study: the implications of menu based PMI

Peter Lurie, Proactive Medical & Life

In facilitating the taking out of a policy for a client, I try to ensure the policy is fully comprehensive. In cases where this is not possible, due to budget restraints, I look to contain costs by selecting only specific elements, with emphasis on having at least the basic options- namely, the core product, elements of outpatient and perhaps a basic level of therapies.

While this is beneficial from a cost containment perspective, it has many times left me concerned by the long term implications that my choices will bring. Perhaps in the future, an unlimited outpatient option will be more needed than varying levels of therapies, psychiatric or access to specific hospitals - or any other option over another.

Since the future is unknown, the worry is very legitimate. So how do I allay my concern and plan the best possible outcome for the future?

Much of the solution lies in the initial fact find completed with the client. It establishes the client's primary needs, including budget and reasons for taking out a PMI product.

This process also allows me to discuss future scenarios with them, explain how I will work within the specific budget, offer advice based on my experience as a broker, compile a composite picture of what risk elements they face and the protection the client truly requires.

Whilst not fool proof, it affords me a stronger position from which to pick the right elements of the policy- hopefully obviating as many future issues as possible. Indeed, I hope my clients never have to make use of the products I provide them.

Brian Walters, Regency Health

If the client has a limited budget this will determine the extent of cover that can be purchased. Mid-range PMI plans are typically characterised by an annual limit on out-patient consultations, therapies and diagnostic tests (other than MRI, CT & PET scans), while basic plans tend to remove cover for these items completely.

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