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Important Tips to Consider When Buying Health Insurance in Australia

Tue, Aug. 29, 2017 Posted: 07:01 AM

The question of whether you should get health insurance or not beggars no answer because buying health insurance cover is a must. Health cover ensures that you can financially be taken care of when you fall sick as well as get some tax benefits. However, private health insurance does not exist; instead there are private hospital insurance plans that you can purchase if you take time to compare health insurance policies available to you such as a plan with a 20% co-payment clause from your own pocket.

Many people prefer to purchase health and life insurance plans towards the end of every financial year because it provides a way of saving on tax. Due to the constant escalation of medical costs, having health insurance is unavoidable. One thing that makes it a difficult task is the fine print and industry jargon used, and the confusion brought by indecision about what you want. Here are a few important tips to help you solve the insurance puzzle.

Make a Comparison of Plans Available Online
Health plans can be compared online across several frames of reference such as costs and duration. Find an aggregator of various financial products to help you understand what kind of policy best suits you needs. Things to look for include benefits for maternity, free medical examinations, ambulance charges, convalescence benefits, coverage for day care, no-claim bonus, OPD coverage, treatment coverage, and options for non-allopathic treatment.

Looking For Combined Cover?
Extras and hospital cover can be combined into a single policy. Since you deal with the same health fund for both plans, it is more convenient. And the fund will also find it easy to sell you two policies in one lot. What you should consider is whether you have to get them from one fund, and whether you need both extras and hospital fund. Do not waste good money on an insurance plan you will not use. Remember that private extras and private hospital insurance are not the same. Some combined policies are good, but you can do better by purchasing hospital and extras insurance from different funds.

Search for Policies with Broader Networks
Since hospitals network with insurance across the country, you can access facilities for cashless transactions if your insurer networks with the hospital where you are. Hassle-free settlements can be conveniently settled. To make a claim to your insurer outside the network, you must use your own cash to settle the bills before completing the paperwork for a claim.

Go For Comprehensive and Adequate Plans
Besides cover for hospitalisation, many insurance companies provide a wide variety of features in the same insurance policy. Stiff competition forces them to offer OPD expenses, expenses for pre-and post hospitalisation, plans for critical illness and much more. Choose a comprehensive plan giving enough sum assured. Compare all the existing features and get the best plan for your budget instead going by the cost of premiums alone. To help you manage the inflation of healthcare cost, remember to increase your coverage periodically.

Understand the Co-payment Clause by Reading it Through
Sometimes you can foot part of the medical bill from your pocket by a pre-determined percentage that the insurer offers you. The clause might specifically refer to some illnesses or treatments that need a 20 percent or more co-payment. You can save on the costs of premiums by going for a higher co-payment that can lower your premium. This is ideal for younger and healthy people with no medical issues. Other factors to consider are policies that offer restoration benefits, cost efficiency using a family floater, checking about sub-limits on renting a room, and a lot more.

Now that you have these useful tips, isn’t it time you started comparing insurance plans?

George Smith