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Health Insurance for young singles
I'm young and healthy – why do I need health insurance?
If you're one of over a million young Australians aged between 25-34, you may be wondering whether health insurance is worth it for you. 70% of people in that age bracket are not covered by health insurance at all, and those that are, have probably heard that the Federal Government budget changes mean they can drop their cover with no tax penalty.
So why bother, right?
Even if you're young and healthy, there are still some great reasons to get health insurance. Here are a few to chew over:
1. The later you join, the higher the cost
Under the Government's Lifetime Health Cover (LHC) scheme, your premium is calculated according to your LHC age, which is the age at which you began hospital cover. If you take out hospital cover before age 30 and keep it continuously, then you have a LHC age of 30 for life and pay the lowest possible premium. For each year after the age of 30 that you do not have hospital cover, a 2% age loading is added to your premium. For example, if you take out hospital cover at age 35, you will have a LHC age of 35 and pay 10% age loading on your premium.
To avoid an age loading, you need to take up hospital cover no later than 1 July following your 31st birthday. If it's already too late to avoid the loading, you can still save by joining now and keeping your LHC age as low as possible. After 10 years of continuous hospital cover, you will be rewarded by the removal of all loadings and an adjusted LHC age of 30.
LHC is applicable for all Australians, so it pays to take out hospital cover early in life, and to keep it. Not only will you avoid a higher premium, you also enjoy peace of mind with private health insurance to cover any accidents, injuries and unexpected medical needs that can come up in life.
2. Reduce your tax
Currently, an extra 1% tax called the Medicare Levy Surcharge (MLS) kicks in for singles earning over $50,000 and couples/families earning over $100,000 who don't have hospital cover.
Approximately one out of every two single Australians aged 25-34 and earning $50K or more per annum do not have health insurance, according to Roy Morgan Research 2007. That means that you could very likely be paying extra tax that you don't need to pay. You can actually enjoy a basic level of hospital cover that exempts you from the MLS, that is actually cheaper than the MLS itself!
Not only does hospital cover exempt you from the Medicare Surcharge Levy, it also covers you for life's medical 'just in case' incidents. Why pay more tax when you can get modest private health cover instead? Compare hospital covers from leading Australian health funds today at www.moneytime.com.au.
3. Top medical care
With private health insurance, you can make sure that you're covered for those unexpected medical emergencies that can – and do – arise in life. Being young and fit can't exempt you from things like sporting injuries, gallstones, appendicitis or road accidents.
Australia has a great public health system, but it's been well documented that public hospital beds can become scarce very quickly, and surgical procedures often require much longer waits than recommended. A recent report by the Australian Institute of Health and Welfare revealed that hospital admissions increased by 4% in the past year, but public hospital beds only increased by 0.4% each year for the last decade. Also, 15% of Australians were not admitted for surgery within a 'clinically appropriate timeframe'.
Don't get caught in the fallout – with private health insurance, you can be assured of a hospital bed, and better still, some policies even guarantee a private room in a private hospital. You can choose your own hospital and doctor, and have greater flexibility for scheduling surgical procedures.
Get protection against life's mishaps with private health insurance. Log onto moneytime.com.au and choose the things you want cover for. You can get instant quotes from a number of leading Australian health funds, and even join on the spot.
4. Benefit without getting sick
If you choose to take out Extras Cover in conjunction with your hospital cover, you can get great benefits on a range of ancillary services like dental, optical, physio, chiro and remedial massage. Some health insurance policies even offer a rebate on gym membership, so you get great benefits from your health fund without getting sick. With regular visits to the physio, dentist, optometrist etc, you can recoup the cost of your premium so you're not out of pocket and stay in tip top shape.
Another major benefit of health insurance, and not to be underestimated, is the peace of mind it brings. Just consider how much you risk when you don't have health insurance. If you're involved in an accident or suffer an unexpected illness, the public health care route could see you placed at the end of a long waiting list, and the private health care route (without private health insurance) could see you facing a massive medical bill. Don't risk financial disaster to save a few bucks. Take your health into your own hands and compare health insurance on www.moneytime.com.au today to find the the policy that suits your lifestyle and budget.
5. Get a great deal
All the health funds generally have products that are tailored for fit, young people, which exclude things like obstetrics cover, hip replacements and other things you don't need. Because you are less likely to incur hospitalisation expenses, the Hospital component of your cover may be basic but sufficient, while the Extras component can include things you'll most likely use, like dental, physio and remedial massage.
To get an even better deal on a great product, you can choose a high excess or co-payment option. Excess and co-payment options are a great way to pay a lower up-front premium by agreeing to an out-of-pocket expense if you are admitted to hospital. The higher the excess or co-payment, the lower your premium. You can determine the reasonable risk while still being protected in case of a health emergency.
On www.moneytime.com.au, you can see the different excess/co-payment options for each health insurance policy available on the website at a glance. By clicking different options, the premium changes right before your eyes, so you know exactly what sort of deal you're getting. Log onto moneytime today and compare health insurance policies to find the one that suits you.
Just keep in mind that if you're an over 30s single earning over $50,000 p/a, you'll need to keep your excess/co-payments below $500 p/a to avoid paying the Medicare Levy Surcharge. Otherwise, your excess/co-payment rate is unlimited.
To compare health insurance quotes from a number of leading Australian health funds, log onto moneytime.com.au today.