Roses are red, violets are blue – love is sweet, but is joint health insurance right for you?
Compare the Market’s Chris Ford said some people might actually be worse off under a couples policy.
“Being in a couple often means sharing a Netflix account, divvying up household bills and even opening up a joint bank account, but you’re not obliged to share a health insurance policy if you’re married or in a de facto relationship, Mr Ford said.
“In the same way that you and your partner have different tastes in movies, TV shows or food, chances are you’ve also got your own health needs as well. And depending on your circumstances, a couples policy may not always work out to be the best option.”
According to Mr Ford, there are several things you need to consider.
Do you and your partner have similar health needs?
“Couples policies work best when your needs align – but when health is so highly individual, going solo is often the way to go,” Mr Ford said.
“If you’re looking for pregnancy cover, you don’t both need to be on a gold policy. And when it comes to extras, like dental and optical, don’t assume that coupling up doubles your limits – some providers split benefits between all people on the policy.”
How does the Lifetime health cover loading impact what you pay?
Took out hospital cover after the first of July after you turned 31? You’ll pay 2% extra for each year you skipped having insurance. It’s called Lifetime Health Cover (LHC) loading.
When it comes to couples policies, the LHC loading is averaged and added to the premium. Even if only one of you has an LHC loading, you’ll get stung.
For example, if you don’t pay LHC but your partner does at 10%, the LHC fee on a couple policy would be 5% – technically increasing your amount but bringing down the percentage applicable for your partner on a couple policy.
The reverse is also true if you or your partner benefit from an age-based discount for holding cover before turning 30.
“Depending on where you sit in this scenario, coupling up for hospital cover could work out slightly less – or more – expensive,” Mr Ford said.
What about government rebates?
Singles earning under $158,000, and couples earning less than $316,000 annually are entitled to rebates from the government to help them pay for health insurance premiums.
Depending on your incomes, you may be able to score a bigger discount by banding together.
Say you’re under 65, earn $102,000 annually and you had a singles policy, you’d be eligible for the Tier 1 rebate of around 16%.
That’s not bad – but say your partner earned less than you and your combined income was under $202,000. On a couples policy you could swing a bigger rebate of around 24%.
Mr Ford said that while reviewing health insurance mightn’t light your fire, potential savings could help fund date nights or a romantic trip away.
“Insurance mightn’t be the hottest topic but getting it right could return more money to your pocket for the things you love,” Mr Ford said.
For more information, please contact:
Phillip Portman | 0437 384 471 | [email protected]
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