Indian Magazine in Melbourne Australian indian magazine in Sydney indian community magazine in melbourne Indian Newspaper Magazine in Melbourne Indian Magazine in Sydney Bollywood News Magazine Australian indian News in melbourne Image Image Image

| May 26, 2020

Why Choose Us We Are An Audited Publication. Advertise With Us.

Scroll to top

Top

No Comments

WHY TAKING OUT PRIVATE HEALTH INSURANCE MAY NOT BE GOOD VALUE FOR MONEY

WHY TAKING OUT PRIVATE HEALTH INSURANCE MAY NOT BE GOOD VALUE FOR MONEY
Damien Peters

Young people are feeling more and more pressurised to buy private insurance cover once they turn 31, but does it make financial sense? The answer according to Australia’s leading consumer advocacy group Choice is a big no. They believe the move could impact negatively on their financial well-being.

After looking at insurance data dating back to 2001, the non-profit organisation has concluded that a customer would be better off taking insurance only when they need it, even if it meant paying the 2% Lifetime Health Cover loading charged by the government. The penalty adds 2 per cent to future health premiums for every financial year a person fails to buy private hospital cover once they turn 31. However, this applies only to the first ten years of premiums.

According to Choice director of campaigns and communications, Matt Levey, the amount you would save by delaying purchasing insurance would be more than the 30% penalty you would incur if you acquired hospital cover at 45 years of age.

In fact, the analysis by Choice found that if you put the money into a savings account, you could wind up better off by $2000, depending on which state you reside in.

“If young Australians feel pressured into buying health insurance just to avoid a future financial penalty they may end up opting for the quickest, easiest option rather than considering the best value product for their particular needs,” says Levey while speaking to Australia’s news. com.au. He believes that the Federal Government’s priority should be to simplify health insurance and give better value.

You may also like:
https://www.incolink.org.au/
Australian construction workers to get easy access to coronavirus tests. A new initiative ramps up the testing process
Low-cost Diagnostic Test
Low-cost Diagnostic Test Developed By Australian Scientists For COVID-19
financial priorities of households in Australia
Coronavirus is changing the financial priorities of households in Australia
horseshoe bats
An exclusive revelation – Two Chinese scientists studied live bats in Australia
Australian Economy
Australian Economy To Take A $400 Billion Hit Due To COVID-19
CovidSafe App
Scott Morrison says social distancing will prevail until the discovery of a vaccine

Submit a Comment

Enquire About Advertising With Us

error:
Read previous post:
BUYING YOUR HOUSE AT AN AUCTION
A GUIDE TO BUYING YOUR HOUSE AT AN AUCTION

In Australia, buying at auction is one of the most traditional ways of purchasing a home. But the method is...

Close