You and your partner share a lot, but when it comes to health insurance, should you share this, too?
Many Aussies may take out a couples policy with one insurer because it’s easier to manage but actually end up overpaying, while others may be paying unnecessarily high premiums or missing out on tax savings by sticking to individual policies.
It’s why it can pay to compare couples and singles policies to find a good deal.
Should we get a couples policy?
With a couples policy, you and your better half will be covered under the same fund, with just one premium to pay.
Remember, both partners have to be on the same level of cover.
Benefits:
- Insurers often create packages for different ages – from young couples to empty nesters.
- Overall premiums may cost less than two singles policies.
- You’ll only have one account and one premium to pay.
- You could get a better government rebate. Singles earning over $90,000 can’t get a full rebate, but for couples this threshold goes up to $180,000.
- More cost effective if you both need top tier hospital cover.
Potential issues:
- Couples who have very different health needs may find one policy too restrictive or expensive.
- If your partner has a high Lifetime Health Cover loading (an additional tax to pay if you take out hospital cover is taken out after 31), you’ll have to pay the average of your two LHCs.
Should we get two singles policies?
If you have very different health needs, it may make more sense to take out two separate policies.
Benefits:
- If one partner has a high LHC loading, the other can avoid sharing the cost
- Useful if you want pregnancy and birth-related cover. One partner can take out a top tier cover and the other takes out a cheaper policy.
- If one partner needs higher-tier policy, it can work out cheaper if the other buys Basic hospital cover, or even an Extras-only policy.
Potential issues:
- Taking out two similar policies can be more expensive than couples cover.
- You’ll have to manage two separate policies
Whether or not it’s cheaper to take out two singles policies really depends on your health needs and how old you are, but it’s worth using all the tricks of the trade to save money on your health cover.
And if the whole process is just too confusing, the specialists at Health Insurance Comparison can compare couples and singles policies from their panel of trusted insurers and see where you could save.
This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.
