Couples often choose to take out private health insurance together for peace of mind. Together you can choose the benefits you want cover for, and cut down the hassle of managing two single health insurance policies. You only need to pay one premium, remember one policy number and claim on one policy.
Also, if you're planning to have children, couples' health cover can be crucial, as most low-cost singles' health insurance policies will not cover you for pregnancy and birth-related services, or assisted reproductive services.
If it's your first time taking out health cover, be sure to read our tips on how to save on health insurance. If you've already had health cover in the past, read our top 7 rules of private health insurance.
With private health insurance, you and your partner will enjoy the best hospital care with:
You can also benefit from health insurance by choosing Extras options that suit the two of you, like dental, optical, chiropractic and physiotherapy.
The Medicare Levy Surcharge is an extra 1% tax imposed on people who do not have hospital cover and earn above the set income threshold. Currently for couples, this threshold (for the 2010-2011 financial year) is $153,000 combined, so if you're earning over $153,000 together, taking out private health insurance is an easy way to save on tax and get private health cover.
Read more about the Medicare Levy Surcharge.
Lifetime Health Cover is a Government initiative designed to encourage people to take out private hospital cover earlier in life, and maintain their cover throughout their lifetime. If you take out hospital cover by 1 July following your 31st birthday, you can lock in the lowest health insurance rate for as long as you continue to hold hospital cover. If you take out hospital cover later in life, for every year after the age of 30 that you do not have hospital cover, an additional 2% loading is added to your base health insurance premium. The Lifetime Health Cover loading applies to hospital cover only, and does not affect the cost of your extras cover. Read more about Lifetime Health Cover.
Lifetime Health Cover can affect couples differently depending on whether one or both partners have a loading.
Both of you have had continuous hospital cover from before 1 July following your respective 31st birthdays
If both of you have had continuous hospital cover from 1 July following your 31st birthdays, then switching to a couple's health insurance policy will not affect your eligibility for the cheapest base health insurance premium. You will continue to pay the base premium (the lowest possible) for the private health insurance policy of your choice.
One of you has had continuous hospital cover but the other has a Lifetime Health Cover loading
If one of you has no Lifetime Health Cover loading but the other has, then the premium you pay will average out the Lifetime Health Cover loading between both parties.
To work out your combined loading, simply divide the applicable loading by two. For example, Sally has no Lifetime Health Cover loading but Dennis has a loading of 10%. Together, they will pay 5% loading on the base health insurance premium of the hospital component of their private health cover.
Both of you have Lifetime Health Cover loadings
If both of you have Lifetime Health Cover loadings, then the loading that is applicable to your health insurance premium is the average of the two loadings combined.
For example, Jane has a loading of 6% and Tom has a loading of 8%. To work out the Lifetime Health Cover loading on their couples health cover, they add their two loadings together (6+8 = 14%) and divide it by two (14 divided by 2 = 7%). This means Jane and Tom will pay 7% Lifetime Health Cover loading on top of the base health insurance premium for the hospital component of their private health cover.
Keep in mind that all applicable loadings are removed if you keep continuous hospital cover for 10 years.
For further questions on choosing private health insurance or navigating our website, don't hesitate to call the moneytime help desk on 1300 88 26 36 (Monday-Friday 8.30am to 5.30pm EST).
See a case study of a couple that saved over $1,400 a year using moneytime
