Crunching the Numbers – How to Pick a Health Plan That Actually Pays Off
When it comes to health insurance, too many Australians are forking out more than they have to, spending money on a policy that doesn’t cover much. With premiums increasing and living expenses tightening every cent, now’s the ideal time to have a close, hard look at your health cover. Let’s see how to choose a health policy that’s actually worth your money.
Choosing a Worthy Health Policy
1. Know What You’re Paying For & Not
First things first! It is important to find out what your current plan includes. You’d be surprised how many people sign up to gold or “comprehensive” cover thinking it’ll protect them from everything, only to find out it doesn’t cover things like physio, dental, or optical without hefty out-of-pocket costs. Take five minutes to check your policy. Look for what’s covered under hospital and extras and compare it with your actual lifestyle.
2. Choose a Tier That Fits Your Life Stage
Australian health plans are categorized into several tiers including Basic, Bronze, Silver & Gold. Each upgrade provides more coverage but at a higher price tag. Don’t simply take a Gold plan for security’s sake. Ask yourself whether you actually need it.
3. Be Aware of Waiting Periods
One of the most challenging aspects of selecting health insurance is knowing waiting periods. They are the fixed periods you must wait before you can claim specific services. If you change funds or schemes, you will likely still be required to do these waits, particularly for those things you were not covered for previously. In addition, be careful about gap fees that’s something you pay out of pocket when the process gets covered.
4. Compare Before You Commit
Don’t settle for the first plan you come across or the one you’ve long had. Health funds differ extremely and it keeps on changing, something that was good value two years ago may not be so now. Utilize a health insurance comparison website that allows you to compare by hospital tier, extras, premium, and excess. Be practical about what you will actually use and think twice about paying extra for things you’ll never claim is simply wasting money.
5. Review Annually – Your Needs Change, So Should Your Cover
Your lifestyle, income and health aren’t static so why is your insurance? Habitually review your health cover annually, particularly before April when premiums increase. You could save money on a better deal or discover you’re entitled to rebates or discounts. Even reducing your extras plan or raising your excess may save you hundreds annually.
Final Word
Selecting the perfect health insurance policy shouldn’t at all be a nightmare. It merely requires a sense of your requirements, reading the fine print, and some homework. Don’t get trapped in buying peace of mind that fails to serve you when you need it the most. So do the maths, switch if necessary, and select a robust health insurance plan that actually fits into your pocket.
