With insurance premiums set to rise between 6% and 7% in April, it’s important to know whether your private health cover is right for you.
Private Healthcare Australia chief executive Dr Michael Armitage said a jump in premiums was unavoidable given patient payouts rose 9.1% last year.
“There has to be an increase in contributions to cover that increase,” he said.
Sarah Cannata from Australian insurance comparison service HelpMeChoose.com.au says Australians should review their existing policies ahead of the annual price rise.
Cannata says you should ask yourself these five simple questions when considering downgrading, renewing or changing your private health insurance:
Is my policy suitable for my current stage of life? The most suitable policy won’t see you paying for services you don’t need (pregnancy cover is a common one) and ensures you are covered for services you may need in the near future.
Can I make payments in advance? If you’re in the financial position to do so, lock in your premium before the rate rise to avoid paying the increased rate. You can pay for up to 13 months in advance.
Does my policy include the right extras for me? Tailor your health cover according to your needs so that extras you’re most likely to need and use are included.
Am I eligible to join a limited access fund? Certain funds are open only to those who meet a set eligibility criteria list. Examples include those who work in the education community and those who have served or are serving members of the Australia Defence Forces and so on.
What else could come in handy in the near future? It’s back to school time which means a lot of children will be engaging in sporting activities. Certain funds include beneficial services such as School Accident Cover as part of certain polices. Do your homework and reap the rewards.
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