Singles health insurance

Private health insurance is split into two products: hospital and extras cover. You can purchase either of these types of cover on their own or combine them into one policy. Hospital policies pay for your treatment as a private patient in a hospital, while extras policies cover out-of-hospital treatments like general dental, chiropractic and physiotherapy.

When you’re young, you may only want to take out a low level of hospital cover (just in case the unexpected arises) and maybe an extras policy for a few key out-of-hospital services.

When you’re older, your priorities change, and you may want the peace of mind that comes with broader coverage. The health services you want coverage for may be quite different from what you needed when you were younger.

For example, you may have a few elective surgeries on the horizon that require a higher level of hospital cover. Or you could find that the extras services you’re covered for no longer match your lifestyle. You might want to prioritise general dental for check-ups over orthodontics, or physio and chiro over cover for gym memberships. Ultimately, the right cover for you will depend on your personal health needs.

Keep in mind that when you upgrade to a higher level of cover, you’ll be required to serve any relevant waiting periods for services that weren’t previously included on your policy. If you’re yet to complete any waiting periods on your previous policy, you’ll also need to serve the remaining time.

It’s also worth remembering that we all have different health needs. Some younger people may need a higher level of cover than others due to their health needs. Always consider your own personal circumstances and preferences when comparing potential policies.

Because health insurance is community rated, your base premium will never increase because of your age. However, it’s not always that simple. Here are a few ways your age could impact what you pay in premiums:

• Lifetime Health Cover Loading. If you hold and maintain a hospital insurance policy by 1 July following your 31st birthday, you’ll avoid the Lifetime Health Cover (LHC) loading. If you don’t, you’ll pay 2% more in premiums for every year you choose not to take out cover over the age of 30, up to a maximum of 70%. For example, if you take it out at age 40, you’ll pay 20% more in premiums.
• Australian Government rebate. The amount you can get back from the government’s private health rebate will depend on both your age and income. The highest rebate tier is 32.385% for those over 70 earning less than $101,000 annually.
• Age-based discount. If you take out a hospital health insurance policy between 18 and 29 years of age, you can get an age-based discount of up to 10% off on eligible policies. Maintaining an eligible policy means you can keep your discount into your 40s.

The cost of private health insurance for singles depends on the following factors:

• Rebates, loadings and discounts. The amount you pay for your health insurance will depend on your eligibility for the private health rebate, LHC loading and an age-based discount.
• Excess and co-payment. Some providers allow you to choose a higher excess in exchange for a lower premium, and vice versa. Conversely, some providers may offer a co-payment instead, which is an amount you pay for every day you’re in hospital.
• Your location. Hospital charges and insurance premiums can both vary between the states and territories.
• Rate rises. Traditionally,  many health funds increase their premiums around April each year. Not all health insurance providers will raise their premiums by the same amount. This is a good time to review your policy and compare health insurance to make sure you’re getting the best deal and price.

Typically, no, couples insurance isn’t cheaper than two single policies as premiums are generally calculated per person. However, depending on your eligibility, you and your partner may be able to receive a larger rebate from the government. It might also be easier to manage one policy.

You may choose to switch to a couples policy when you begin a relationship and then to a family policy if you choose to have children. Be aware that pregnancy and birth-related services have a 12-month waiting period for coverage, so be sure to plan ahead. Policies for single parent families are also available.

Unlike other types of insurance (like life or car), health insurance doesn’t take your sex into account when setting your premiums. Therefore, the average cost of health insurance won’t be heavily influenced by whether you’re a single male or single female. In fact, the only difference based on sex that you might find in health insurance is policy benefits, since men and women have different health care needs and seek different cover options.

Getting the chance to avoid public hospital waiting lists is one of the more compelling reasons why singles can benefit from private health insurance. You can avoid public hospital waiting lists for specific elective procedures, depending on your level of cover and clinical eligibility.

Another plus is that you’ll get a private room (if it’s available) while waiting for and recovering from your elective surgery, and you’ll generally have a choice of doctor.

Depending on your state, private hospital cover can pay for emergency ambulance transportation. In some states, you can subscribe directly to the state’s ambulance service or choose to cover it with private health cover. QLD and TAS residents and Department of Veterans’ Affairs cardholders typically don’t need to pay for ambulance trips.

Health insurance is community-rated, which means providers can’t charge you a higher base premium based on your age, occupation, gender or health conditions.

You can still include eligible extras and hospital benefits in your cover that relate to your pre-existing conditions at no extra premium, though you’ll typically have to wait 12 months before you can claim on relevant hospital services.