Why You Should Reassess Your Health Insurance Plan Every Year
Published March 23, 2026
For many Aussies, having a health insurance policy is a vital aspect of their financial and personal security, and it is largely due to the protection it affords you against unforeseen medical expenses and the peace of mind knowing you’re always taken care of. However, many Aussies also have a tendency of not reviewing their health insurance policy, which can result in them not getting the most out of their policy. That’s why an annual health insurance review Australia is essential to ensure you’re getting the most bang for your buck.
Why does reviewing your health insurance policy matter?
Life is full of surprises, and there are many milestones we go through in life, including marriage, having children, growing old, and changing careers. Therefore, it is evident that as we go through life, our needs also change. A policy you thought was great a year ago might not be giving you the level of cover you need today, or it might have features you don’t even use anymore. If you don’t review your policy from time to time, you will definitely incur unnecessary expenses.
Why an Annual Health Insurance Review Australia Matters
Change is an inevitable part of life. From getting married to having children, growing older, or changing careers, change is always constant. Your health needs are bound to change as you go through life. A health insurance plan that worked for you last year may not be adequate to provide you with the level of coverage you need at present. It may have features that you no longer need to use. Therefore, if you do not review your health insurance plan on a regular basis, you are most likely to incur unnecessary expenses.
In addition to change resulting from individual circumstances, there are other changes that are always constant. Every year, health insurance companies adjust the cost of their premiums. This means that if you are not aware of what is going on, you could be paying more than you need to.
Three reasons to review your health cover annually
1. Changing Life Stages
You will need a health plan that changes as you go through different life stages:
- Starting a family: A health plan must include obstetrics, which has a waiting period of 12 months. So, if you’re planning a family, you must upgrade your health plan.
- Raising kids: Families need a health plan with good extras cover, especially for dental, orthodontics, and optical, as these are usually required for kids.
- Empty nesters: Once your kids are no longer dependents, you can change your health plan to remove any unnecessary, costly benefits, like obstetrics.
- Retirement: The elderly need health plans that provide cover for age-related health issues, like cataract removal or joint replacement surgeries.
In short, you will need a health plan that changes as you change, which will help you avoid unnecessary expenses for health services you no longer need.
2. Rising Cost of Living
In today’s environment of increasing inflation and the cost of living, the fact is that we need to look for ways to save money wherever we can. For many Australians, they are overspending on their health insurance by holding onto their policy that has unused benefits. For instance, if you don’t use alternative medicine such as acupuncture or orthodontics, there are other plans that may be more suitable for your needs that will save you hundreds of dollars.
3. Tax and Other Financial Incentives
While health insurance is not only about getting medical coverage, it is also about tax. As a higher-income individual, you could be exempt from paying the MLS if you have private hospital insurance. This could save you up to 1-1.5 percent of your income. As a single person earning over 101,000 or a couple/family earning over 202,000 for the financial year 2025-26, you could save a lot. While health insurance is not only about getting medical coverage, it is also about tax. As a higher-income individual, you could be exempt from paying the Medicare Levy Surcharge (MLS) if you have private hospital insurance. This could save you up to 1-1.5 percent of your income. As a single person earning over 101,000 or a couple/family earning over 202,000 for the financial year 2025-26, you could save a lot.
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