If You’re Planning to Start a Family, Here’s 4 Things to Think About When It Comes to Health Insurance

Great changes are afoot with insurance prices going up on October 1st. Here’s what you need to know.
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Great changes are afoot with insurance prices going up on October 1st. Here’s what you need to know.

The COVID-19 pandemic took the world by storm. It changed how we work and how we socialise. It’s also affected the health insurance industry, most notably by delaying the 2020 insurance price increase. Instead of the customary 1st of April, the changes are happening five months later on 1st of October.

But how will COVID affect you after the price rise? And into 2021? Because most people agree the pandemic will be with us for a long while.

If you’re starting a family in the next year or two – or if you have kids now – there are 4 things you need to think about.

Should you re-evaluate your Health policy? – Check now, it’s simple:

  • Step 1: Click on your current age below.
  • Step 2: Once you answered a couple of basic question, you will have the opportunity to compare quotes from multiple health providers.

Your Premium Will Increase (But the Rate Depends on the Insurer)

The October increase is the lowest we’ve seen in almost two decades, at least that’s what health insurers are telling us. Is that the full picture? Not entirely. If you take a look at the big picture, you’ll see something very different. Namely, here’s what the increases have looked like in the past five years:

● 2015 – 6.18%
● 2016 – 5.59%
● 2017 – 4.84%
● 2018 – 3.95%
● 2019 – 3.25%

Source: The Department of Health

What this means: you’re paying – on average – 26.1% more than 2015. For every $1,000 that’s an extra $261 – money to pay for kids school supplies for the year.

It doesn’t end there, and this is something the industry never openly reveals – the annual increase outstrips inflation, and since 2001, it’s done so by a staggering 300%!

Prediction: prices will probably keep rising into the future. And they’ll probably keep staying ahead of inflation.

The lesson: Review your policy. Check the fine print. And always be willing to compare providers to see if you can get more for your buck.

Pre-Paying May Help You Save Money

Want to save money? Sure, we all do! Which is why it might be possible to soften the blow by pre-paying.

For instance, if you pay for a full year in advance, you may be able to do so at the rate before the October change. The same goes for quarterly, monthly, and fortnightly pre-payments.

Bear in mind that not every fund allows this. Check with your provider to see if they offer such terms.

Certain Item Numbers May Not Be Covered in Your Policy for Dental

You probably know your policy limit. But do you know for certain that your insurance covers everything you need?

Unfortunately, many parents don’t.

Take dental as an example. Many insurance holders assume that it covers the needed services. And then they get a nasty surprise when they discover their insurance doesn’t cover certain item numbers.

Plus, the cover for an item number can vary greatly.

What to do: Whatever you do, make sure that you’re 100% clear on your cover. Again, check the fine print. And if you’re not happy, compare your providers to others.

$5 Million Fine

And sometimes, insurers get it wrong… and don’t deliver on their promises.

In July, for instance, the Federal Court ordered Medibank to pay $5 million in penalties due to false benefits representations. The court discovered that Medibank fraudulently rejected at least 1,396 claims!

Source: ACCC

Free, No Obligation Comparison

In times like these, we need safety and certainty above all! That’s especially true when it comes to our children. So if your policy isn’t offering you peace of mind – or if this article has given you a few things to think about – then get your policy checked.

At no charge and no obligation, we review a wide spectrum of providers and see how your policy stacks up against the rest. We’ll also give you the honest-to-earth truth about the price increase of your policy.

Get started now:

  • Step 1: Confirm your state within the below map.
  • Step 2: Once you answered a couple of basic question, you will have the opportunity to compare quotes from multiple health providers.

Since launching, thousands of Australians have already jumped on board. Over 120,000 Australians have used Billysumo.com.au to compare their household expenses, with the ability to reduce their every costs being referenced as their number one reason for using the site.

Billysumo.com.au is a trusted online service that makes comparison shopping for vital health insurance easy. With the click of a button, they can help you find an affordable policy by stripping away the cover you don’t use, while saving you money on what matters to you.

This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.