Call us on 1300 794 893

Your Money

Private health insurance

We’re a single middle-income family with one child and are trying to work out if we really need private health insurance. I won’t be going back to work for a few years yet. We currently have hospital coverage.

In a perfect world I’d like to say: “Yes, you must have private health insurance.” However, it’s not a perfect world:

  • You can get sick
  • Public hospitals leave a lot to be desired
  • You have a child who can always break an arm
  • Interest rates have bitten into our disposable incomes
  • Petrol price rises have added to our economic misery.

If you use profiling to work out who can gamble and dump private health insurance then you would go for a single person, under 30 years of age, with no congenital problems and not into high impact sports. Ideally he or she would be a very safe driver who uses a lot of public transport in very safe suburbs. They’d also be a non-drinker, non-drug user and a non-smoker.

With this in mind, let’s look at you and here are the question you and others thinking about opting out must consider:

What’s the health profile of all three of you?

Are you a person of high ideals who would want A-grade treatment or can you cop what is doled out at hospitals. (By the way, even with private coverage, you can be given an ordinary experience in hospital!)

Personally, I believe all of us should have insurance where we are vulnerable, but it can be an economic trade-off. Given your position as a parent I’d be very careful about dumping your coverage.

There are websites that compare coverage, but they can be limited in what they compare and can receive kickbacks from the health funds. I’d do some homework to find out if you can get cheaper coverage that still gives you what you want. The hard research work might deliver savings and peace of mind.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Friday, December 18, 2009

blog comments powered by Disqus
Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300