Women In The Black

Top 5 Legit Health Insurance Hacks

Top 5 Legit Health Insurance Hacks

These 5 tips could make health insurance the easiest way to save money and have peace of mind. With the end of the financial year fast approaching, now is the time to review your situation.

Get in early

When it comes to private health cover, the early bird definitely gets the worm. Lifetime Health Cover (LHC) is a government initiative designed to encourage people to get private health cover at a younger age. Essentially it means that the longer you leave it after you hit 30, the more you’ll have to pay in insurance premiums should you decide to take out private health cover later in life. LHC will apply to you starting from the first of July after your 31st birthday, and after that you’ll have to pay 2% more for every year you are aged over 30. That means if you wait until you’re 40 to take out a policy, you’ll be paying 20% more than someone who took out a policy at 31. And, just like winter, the first of July is coming!

Use a free online comparison service

There are many health care providers in Australia with hundreds of product combinations to suit all kinds of people. But which one suits you the best, and will it continue to fit over the years? Taking the time every couple of years to consider your situation and compare different health packages online will mean you will always have the most appropriate cover for you and your family’s needs without breaking the bank. Choosewell – an independent and free online comparison website – can help you make the right choice with side-by-side comparisons online and consultants available by phone should you have any questions. It’s the easiest way to find the ideal arrangement.

Don’t be an April Fool

Every year, health insurers are allowed to submit proposals to the Federal Health Minister for permission to raise their premiums. Just like other products, health products fluctuate in price too but the government ensures that consumers don’t get fleeced. The amount the rate is raised varies from year to year and insurer to insurer, but one thing is certain – your premiums will go up. That much cannot be avoided, however what you can do is be vigilant with your insurance policy. Take a little time every year to compare other policies and see which one is the best fit for you and your budget: are you paying for Extras you don’t use, or is your fund increasing their rate by more than the industry average? If so, maybe it’s time to look elsewhere. If you switch to a new policy before 1 April and pay the yearly premium upfront, you can lock in the lower rate and avoid being an April fool!

Mix it up

There’s no rule saying you have to have all your eggs in one basket. For example, you can choose to take out Hospital cover with one fund and Extras with another. Some providers also offer packages that include both. If you separate these policies, often you can get better rebates and more appropriate cover. Do a little research and compare the components of each insurer’s policies. It also pays to constantly review the different elements of your cover; funds are constantly evolving and adapting, and maybe the extras package you had five years ago isn’t as good value for money now. Mix it up to stay ahead of the game.

Excess or co-payment?

With many policies you can choose to pay an excess, essentially agreeing to pay part of the bill yourself if you go to hospital. The payoff is that your fund will give you lower monthly or annual premiums. If you’re unlikely to go to hospital in a given year, you might want to consider paying a higher excess – the higher your excess in the event you do end up in hospital, the lower you and your family’s premiums.

Alternatively, you could choose a co-payment option. This allows you to elect to pay a set amount per day as opposed to a percentage of your hospital bill. Don’t pay both! Ideally you should be able to find a policy that allows for either an excess or a co-payment. Compare different cover and see what works for you and your family.

Use a free online comparison service

There are many health care providers in Australia with hundreds of product combinations to suit all kinds of people. But which one suits you the best, and will it continue to fit over the years? Taking the time every couple of years to consider your situation and compare different health packages online will mean you will always have the most appropriate cover for you and your family’s needs without breaking the bank. Choosewell – an independent and free online comparison website – can help you make the right choice with side-by-side comparisons online and consultants available by phone should you have any questions. It’s the easiest way to find the ideal arrangement.

email

About WITB

Australian community dedicated to improving financial literacy through media & events designed to connect, encourage and inspire all women. Join today! View all posts by WITB →

Join The Discussion

After you comment, click Post. If you're not already logged in you will be asked to log in or register

Editors Letters

Screen shot 2014-03-14 at 4.05.59 PM

Alarming Statistics Highlight Hidden Poverty

This is a Vietnamese woman selling waffles in front of the Louis Vuitton store in District.1 in Saigon, Vietnam. You notice the contrast between poverty …

email
Read More
Women In The Black is a community where like-minded women discuss personal finance, saving, investing and building wealth.
Sign up for expert articles and resources