When we're young we're kept occupied by university, career, relationships and everything else involved with the transition into adult life. Understandably, private health insurance in Australia often isn't a blip on our radars – but it should be.
Why should you take out private health insurance young? Because getting covered early could save you money in the future thanks to lifetime cover loading, a government initiative designed to encourage people to take out health insurance younger. In fact, every year after 30 that you don't have private health insurance, your premiums will increase by 2 per cent up. Leave it long enough and your cover could end up almost twice as expensive.
Getting private health insurance younger
Lifetime cover loading is designed to get people onto hospital cover earlier, in order to reduce the strain on public facilities and provide better healthcare for all. It's an initiative that means taking out private health insurance under 30 is usually a smart idea, but it also makes doing so more difficult for those who are already well into their 30s, 40s and 50s.
With that in mind, is this really the most effective way to encourage younger Australians to get the cover they need earlier? A recent Finder survey of 2019 Australians suggested otherwise. In fact, it found that a discount for under 30s may be more effective. The results showed that 60 per cent of Gen Ys would take out private health cover earlier if they were offered a discount before they turned 30.
Lifetime health cover loading: Most Australians don't know what it is or where it goes https://t.co/IRnkSTvKNO
— The Age (@theage) April 23, 2017
Discounting private health insurance for under 30s
Here at HICA, we are experts in private health insurance in Australia, not policy making. But we're all for anything that makes cover more affordable and encourages people to get the insurance they need sooner. A simple discount might do just that without unfairly disadvantaging those over 30 who haven't got cover yet?
In the meantime, the focus for the young and uninsured should be on looking at your options and picking the cover that suits your lifestyle and your budget – at a great price. That's what we specialise in here at HICA, so get in touch soon to protect your income and your health without straining your bank account.