Comparing Private Health Insurance can seem daunting; the plans can appear too complicated, working out the best value options seem difficult and you’re never certain that you have the cover you really need.

Regardless of your age or circumstances, there are some very important questions you need to ask before you decide on the best Private Health Insurance for you.
Do you need Private Health Insurance?
Who do you include in your Private Health Insurance?
What ‘extras’ are included in your policy?
Is your policy flexible?
Is this an affordable policy that best suits your needs?

Do you want to unlock the jargon and choose the cheapest Private Health Insurance for you? Whether you’re single, a couple, a family, a small business or even if you’re visiting from overseas!

Some important terms that you need to know:

The Australian Federal Government has a number of incentives that are designed to encourage you to take out a Private Health Insurance policy.

Lifetime Health Cover (LHC) was designed to provide a balance between the private and public healthcare sectors, offering greater choice and access to excellent health care. This system encourages people under 30 to take out Private Health Insurance Hospital Cover for life. Your premium rating is set for life when you first take out Hospital Cover. You will pay a 2% loading on top of your premium for every year you are aged over 30. For example, if you take out Hospital Cover at 40, you’ll have a 20% loading! Don’t worry – there is a maximum loading of 70%. Also, as an additional incentive, the loading is removed after 10 continuous years, as long as you keep your Hospital Cover.

Medicare Levy Surcharge (MLS) is a way to “encourage” people whose taxable income is greater than a specified amount to get private cover. If you don’t have an “adequate” level of private hospital cover you pay a 1% surcharge on top of the standard 1.5% Medicare Levy. The MLS is imposed on individuals and couples or families earning over the threshold who do not have an appropriate level of hospital insurance.

30% Rebate is the amount the Australian Federal Government pay toward the cost of your Private Health Insurance. You are entitled to 30 cents from every $1 you pay. You can choose to take this as either a reduction in your premiums, a direct payment from Medicare upon presentation of a receipt from your Health Insurance fund or as a tax deduction at the end of each financial year.
Some Private Health Insurance policies have options providing you the flexibility to customise your policy. Some key terms to be on the lookout for include:

Excess is the amount you agree to pay for hospital services in exchange for lower premiums. Some policies allow you to contribute each time you go into hospital while in others you elect to pay a set amount each calendar year. Some policies will only charge the excess if you’re admitted to hospital instead of day surgery.

General Treatment Cover are the extras offered in you Private Health Insurance policy. Carefully read your Product Disclosure Statement to see which services are included, such as: physiotherapy, dental, optical, podiatry and select alternative therapies.

Exclusionary Cover allows you to remove services from your policy that you think you won’t need in exchange for a premium discount. While this cover can provide cheaper health insurance, it can’t predict your future health needs.

Author Bio: Frank Wall is a student of Private Health Insurance in Australia. He helps people compare private health insurance cover, find the cheap private health insurance and best extras or anciliary cover.

Category: Finances
Keywords: health insurance, australia, waiting period, times, pregnancy, cheap, compare