Health insurance is a complicated topic, but luckily we’re here to help you find the best plan for your needs. In this guide, we’ll answer all of those burning questions about private health insurance and give you 7 great money hacks to help you keep your cover as affordable as possible.
Key facts
- After the 1st of July following your 31st birthday, you’ll have to pay a loading fee of 2% on top of your insurance premium for every year you don’t have cover after you turn 31.
- You can avoid paying the loading fee by taking out health insurance cover before you turn 31.
- You can save money by taking out health insurance which offers wellness programmes, paying your premiums annually, and taking advantage of the tax rebate initiative.
- While there are no rules stating that you have to take out health insurance, even the most basic health coverages can help you save money on health care treatments, procedures, and services both in and out of hospital.
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Why you need health insurance in your 30s
- You’ll need to pay extra fees after you turn 31: After the 1st of July, following your 31st birthday, you’ll have to start paying a loading fee on top of your annual health insurance rates. The loading fee is an additional 2% of every year you did not have health insurance before the age of 31. Therefore, it is recommended that you purchase or apply for health insurance before your 31st birthday to avoid paying the loading fee.
- You’ll pay more taxes if you don’t have cover: There is a Medicare Levy Surcharge for those who earn over $90k and do not have health insurance. The fee is a levy of between 1% and 1.5% of your annual income and required if you haven’t purchased health insurance previously.
- Premiums won’t be getting cheaper: Generally, premiums continue to rise each year, if you apply for cover when you’re younger, you’ll typically be able to get a lower premium which will then increase on a yearly basis. However, if you wait to apply for cover when you reach your 30s you’ll be paying significantly more for your cover. This doesn’t even include the LHC loading. When that is added to your premiums, you could end up paying up to 20% more for your health cover than other people your age.
7 Money Hacks for health insurance in your 30s
- Get basic: A Basic Hospitals Plan is all you require to avoid paying both the 2% loading fee and the 1 – 1.5% levy. Purchase a health insurance plan, even the most basic, before you turn 30, and you can save money. These types of policies are often significantly cheaper than other Bronze, Silver or Gold policies. Additionally, they cover the services that you’re most likely to need while you’re young. In addition, if you sign up for health insurance cover during peak times, which are in March and June, you’re more likely to save money on your policy rates as insurers usually run discount offers and promotions during these times.
- Choose the right places to get care: Review and compare numerous insurance companies and their plans. Some companies offer discounts when visiting certain healthcare providers, helping you seek out the best provider for your needs while still saving money. Be sure to check which services you require or expect to receive on a regular basis as some companies may offer benefits, deals, and discounts on certain healthcare treatments.
- Enroll in a wellness rewards programme: Many health insurance companies have a linked wellness rewards programme for members that award users benefits, discounts, and reclaimable points when they reach health and wellness goals. If you lead an active lifestyle and regularly make use of wellness services, such as gym memberships, it may be a good idea to take out health coverage as you can receive attractive deals on these types of costs.
- Pay your premiums annually: If you pay your premiums in advance on a yearly basis, you can receive discounts on the total amount, saving you money on your overall premium rates. Some companies offer up to 4% off your total annual policy rate if you pay in advance for the entire year. By following this process, you’re also ensuring that no matter what happens in the year to come, you’ll be covered when it comes to health requirements, services, or needs.
- Don’t pay for Extras you don’t need: An Extras policy or paying for a combined Hospitals and Extras plan can be extremely useful but only proves to be expensive if not required. Remember to review your own lifestyle and health care requirements before purchasing an Extras plan. If you don’t need the health service often, then don’t purchase an Extras plan that includes it. Extras plans include all the out-of-hospital health care services, such as eye and dental care. However, some plans are packed with other types of cover which you may not require as an individual. If this is the case, it’s better to save your money and avoid paying for things you don’t need.
- Take advantage of tax rebates: Depending on your income, the Government contributes annually to the cost of your private health insurance. The rebate is calculated by either the Consumer Price Index growth or the average health insurance premium increase. Whichever amount is the smallest is what the Government will cover. Be sure to check if you are eligible for this programme, and if so, make use of it as you could save an attractive annual amount. To receive the tax rebate, simply apply by filing in the official form and if you’ve been accepted, the rebate will automatically be applied and you’ll begin saving on your annual premium costs.
- Keep your finger on the pulse: You don’t have to stick with the same insurer for life. Health insurance companies are always changing, and sometimes the shift may no longer suit your lifestyle. Another company might be offering exactly what you’re looking for but at a cheaper price, making the move a good idea if you want to save money. Maybe your life is changing, and you have different health requirements than previously. Whatever the case, remember to review and compare insurance companies and plans on a fairly regular basis to ensure you’re receiving the best possible health insurance for your needs.
Frequently Asked Questions and Answers
Do you need health insurance before 30?
While there is no rule stating that you need health insurance before you turn 30 years old, it is highly recommended as the cost of health insurance dramatically increases after you turn 31 years old. With both the loading fee and levy surcharge, you may end up paying more on your policies.
What is the right age to buy health insurance?
There is no correct definitive age to purchase health insurance. Still, the best time would be to purchase health insurance before you turn 30. This is because of the money you’ll be able to save, and you’ll be protected against accidents and health treatments you will no doubt need later on in life.
How much is health insurance a month for a single person?
The cost of health insurance annually and monthly depends entirely on which health insurance company you choose to become a member of and what level of health cover you decide to take out. There are numerous companies, Extras policies, and Hospital plans to choose from, depending on your income, health needs, and lifestyle.
Does health insurance go up when you turn 30?
Health insurance rates increase after the 1st of July following your 31st birthday. The increased rate is added on top of your premium rates. The loading fee is generally 2% of every year you did not have health insurance before turning 31.
What is the best private health insurance for someone in their 30s?
While there is no single best health insurance for everyone, any health insurance coverage is better than nothing. Take out even the most basic hospital plans. You’ll save money on your premium rates and avoid paying the loading fee, which is applied after you turn 31 years of age.