Older Aussies Paying for Health Cover They Don’t Need
New Free Service helps older Australians save big on Health Cover
Health insurance is one area where loyalty may not be paying off for older Australians. A recent survey revealed that 69% of over-50s have been with their current fund for 6 years or more. However, only 2% believe that they are getting good value for their health insurance premium.
These over-50s report that health insurance is the top cause of bill stress, yet many Australians aren’t making the switch to an insurer that does meet their needs. The result is that older Australians are paying for coverage they don’t need, and the ensuing stress is likely to make their health worse. It’s a dangerous cycle, but it’s one that can be broken.
Why older Aussies are paying too much for health cover
The longer people stay with their insurer, the less likely they are to re-evaluate what they’re paying for. It’s easy to pay your health insurance premium simply because you’ve been doing it for years, assuming that paying the bill means that you’re looking after your health.
In order to really look after your health, however, it’s important to take a look your health insurance policy at least once a year. As you age, your health needs evolve. Extras like birth services may not be as important as joint replacement or ambulance cover. Check the details of your policy to see just what it is you’re paying for.
Australians are living longer than ever before, and most older Australians report that they are in good health. This is great news, though it doesn’t change the fact that there are certain conditions associated with age, such as hearing loss and arthritis. Are these the things covered by your health insurance policy, or are you still paying for the things you prioritised 20 years ago?
Another contributing factor is that many people simply don’t know what to look for when it comes to choosing a health insurance policy. The ACCC has found that consumers are affected by a lack of comparable information before purchase, along with difficulty locating the relevant information. Australians may be paying for coverage that isn’t right for them because the right information wasn’t available to them at the time of purchase.
What can be done
The thought of switching to a new health insurance policy – especially when you’ve been with the same one for years – can be enough to make you say ‘no thanks.’ This is exactly the line of thinking that leads to paying too much for coverage. The ACCC also found that people are hesitant to switch policies because they’re not convinced that there is an appropriate policy out there for them. Consumers may also believe they will have to re-serve waiting periods if they move to a new policy, however this is only the case when moving to a higher level of coverage.
Switching to a plan with a similar or more basic coverage level will generally mean not needing to re-serve waiting periods, even if it’s with an entirely different fund.
The first step in assessing your health insurance policy is to take a look at the policy itself. What are you covered for? What do you need to be covered for? The next step is to compare your existing policy with what else is out there. There may be a better, more affordable option for you that will keep you covered the way you want to be covered. Isn’t that worth making the switch?
Here’s How You Do It:
Step 1: Select your life stage below.
Step 2: Once you select your preferred coverage options, you will have the opportunity to compare quotes from multiple health funds.
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