The variety of health insurance plans on offer can sometimes feel overwhelming. But don't let confusion keep you from making the right choice for you. We've collated some of the most asked questions on health insurance and answered them here.
Your most-googled health insurance questions, answered
ARTICLE
04 March 2022
4 mins read
4 mins read
Why is health insurance important? Is it worth it? When do I need to buy it? We answer all your questions and more.
Why is health insurance important?
Over the past few years, we've all experienced how unpredictable life can be. Thankfully, health insurance can help lessen some uncertainty along the way.
The core benefits of private health insurance allow you to be treated in private hospitals. It assists in paying your medical bills and allows you greater flexibility and choice – for example, choosing which hospital to be treated at and even which doctor to see.
Having private health cover may also mean you don't have to pay the Medicare levy surcharge, a fee paid by Australian taxpayers who earn above a certain income – $90,001 for singles and $180,001 for families, couples and single parents – and don't have any private hospital cover.
Depending on your insurance policy, you may also be entitled to benefits for health services like physiotherapy or chiropractic treatment. These are choices based on your personal health needs, which should be considered when you select your tailored health insurance policy.
At AIA, we have a range of policies that suit people from all walks of life. Explore our range of products here, and let our online calculator help you compare and personalise health insurance to suit your circumstances best.
Signing up to a health insurance policy with AIA also grants you access to AIA Vitality, a personalised, science-backed health and wellbeing program that supports and encourages healthy behaviour. Find out more here.
When do I need health insurance?
While it's a good idea to be insured under a health insurance policy all the time, your medical needs will change over the course of your life. It may be helpful to reassess your insurance plans from time to time. If you have a regular doctor or treating specialist, they might be able to help you in this process.
If you're a young adult and still under your parents' health insurance plan, you might want to look at their plan and see how much longer you’ll be covered. Some family health insurance plans will cover adult children up to 25 years. Some will even cover you up to 31. Health funds and policies differ – so you'll need to check the specifics. One thing's for sure: there will come a time where you're not covered by your parents anymore and you'll probably want to sign up for your own health cover.
The Australian government also encourages you to take out hospital cover before 1 July following your 31st birthday – an initiative also known as Lifetime Health Cover (LHC). If you don't have hospital cover following your 31st birthday, you'll need to pay an extra 2 per cent on insurance premiums each year without hospital cover after your 30th birthday.
Are health insurance premiums tax-deductible?
While you can't normally claim your insurance premiums as a deduction on your tax return, there are certain exceptions.
Depending on your income, you may be eligible for a private health insurance rebate. You can claim this either through your health insurer – which will reduce your premiums throughout the year – or when you lodge your tax return.
AIA can help safeguard your income with our Income Protection CORE cover – you can read more about it here.
Are extras worth it?
Health insurance extras help pay for services generally not covered by Medicare, such as optical and dental services. Health extras are generally worth their cost – as long as they're used.
It's important to pick the right plan that suits your lifestyle. Are you an aspiring athlete? Physiotherapy could help with injuries or recovery and maintenance. Have young kids? A robust dental plan might be a good idea. Access our detailed calculator here to help you compare and decide which insurance cover suits you best.
Plus, you can get back up to 100 per cent of your extras premium depending on your AIA Vitality Status, as part of our Extras Value Protect program. You can find out more about this unique benefit here.
Can I make a claim related to covid-19?
You can make a claim related to COVID-19 if it meets the eligibility requirements for your cover. We’ve extended our cover to include COVID-19 for all our policies, so if you're admitted to hospital due to the coronavirus, you'll be covered – as long as you've held an AIA Health Insurance policy for a minimum of two weeks.
Additionally, receiving a COVID-19 vaccination will not affect any claims you make on an existing life policy now or in the future. AIA Vitality members can also earn 1,000 AIA Vitality Points when they’re fully vaccinated (two doses) against COVID-19 – all you have to do is show photographic proof of your vaccination receipt or certificate.
Staff Writer
Staff writers come from a range of backgrounds including health, wellbeing, music, tech, culture and the arts. They spend their time researching the latest data and trends in the health market to deliver up-to-date information, helping everyday Australians live healthier lives. This is general information only and is not intended as medical, health, nutritional or other advice. You should obtain professional advice from a medical or health practitioner in relation to your own personal circumstances. The information in this article is general information only and is not intended as medical, health, nutritional or other advice. You should obtain professional advice from a medical or health practitioner in relation to your own personal circumstance
Disclaimer:
This is general information only and is not intended as financial, medical, health, nutritional or other advice. You should obtain professional advice from a financial adviser, or medical or health practitioner in relation to your own personal circumstances.
This is general information only and is not intended as financial, medical, health, nutritional or other advice. You should obtain professional advice from a financial adviser, or medical or health practitioner in relation to your own personal circumstances.
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offers ways to improve it and motivates you with rewards along the way.
offers ways to improve it and motivates you with rewards along the way.
