A Better Way to Buy Health Insurance
Many people are unsure as to whether they should stay in the public system or purchase private cover. But when people move from being single to a family situation, private health insurance can often be high on their shopping list.
Each ‘life stage’ is filled with its own health challenges and getting the most appropriate cover for your particular situation is difficult without getting the right advice.
Furthermore, part of the rise in demand for people taking out Private Health Insurance is due to the ‘age loading’ penalties and 'high income earner' tax penalties that the government imposes. Whilst the Government pays 30 per cent of the insurance cost through the rebate system, and this increases for older Australians, if you’re over 31, the Government adds a loading of two percent to your annual premium for each year you’re uninsured.
On the tax front, from 2009/10, if you’re single and earning over $73,000, the Government may add an additional one per cent on top of the Medicare Levy of 1.5% that you have to pay. So why pay the taxman?
iSelect helps you compare a range of policies from its participating health funds, helping to put you in control of your purchase. It offers a free online and over-the-phone advice and policy comparison service.
Use iSelect
iSelect helps take the mystery out of Private Health Insurance. iSelect helps you compare a range of policy combinations from participating health funds, plus you’re getting choices and advice on what’s available for your life stage, individual circumstances, needs and budget. Through using iSelect, you may be able to save on the cost of your health insurance.
Switch funds
There are great deals out there so don't be afraid of changing health funds. If you change funds to a similar level of cover, you will not be required to re-serve those waiting periods with the new fund in most cases.
People often don't change health funds because they falsely believe they'll have to go through a new waiting period. But legislation governing health funds guarantees that if you switch to another fund with the same level of cover, you will get continuity of cover.
Review your extras
Many consumers opt for hospital cover as well as ancillary cover for dentistry, physiotherapy, optical requirements and others. There is a wide variation between funds on what you’ll get back, so make sure that your cover is competitive.
Tailor-make your policy
You need to work out what ’life stage’ you’re at. At iSelect, we suggest that there are five broad life stages. For example, if you’re young you may not want hip replacement, if you’re an empty-nester you probably won’t require birth cover, or if you’re 40-plus then major dental is probably on the cards. Look at your family history, and tune your policy accordingly. Also by paying a higher excess you can cut your premiums.
Don't pay the Taxman
Beware if you’re moving up the income scale you may be paying an extra one per cent in tax through the Medicare Levy Surcharge.
For example if you are single with a taxable income of $73,000 or a family/couple with a combined taxable income of $146,000 or more, it is likely you will be exposed to a one per cent Medicare Levy Surcharge if you do not have qualifying private hospital cover.
Health InsuranceiSelect - a better way to buy private health insuranceCompare, select and save from a great range of competitive options uniquely matched to your needs and budget. |
