Question related to:
Private Health Insurance; Hospital cover.
Good afternoon (or morning).
Would love some honest advice in regards to the “need” or thereof in regards to hospital private insurance?
I’m a solo parent with two children. I work full time and live in QLD. Last financial year I earned $86k.
I have both hospital & extras. Currently paying $88.05 (01.10, $92.00) a fortnight towards health insurance ($750 excess hospital). This cover is excluding the children.
Before you “yell” rip off. I know.
Since being on maternity leave and have plans to not return to work for another 12 months. I’ve thoroughly updated my budget to see if I can financially afford this as my income will dramatically drop.
In saying all that. I’m now realising I’ve been paying top $ towards my health insurance for no reason. Extras are an absolute must but paying top $ towards hospital is absolutely ridiculous considering our public health system is by far great (in comparison to other countries). I’ve also realised I’m paying for things I will never need (ever) or things I may need later on in life (20-30 years away). For a starters I’m paying towards “male reproductive system” 🤔 that I will never need. I am relatively healthy and so are my children. So the need for hospital insurance seems unnecessary.
After a depressing calculation.
I’m paying:
$50.20 a fortnight towards Hospital. 😮
50.20 x 26 = $1,305 per year
1305 x 30 yrs (I’ll be in my 60s) = $39,156.
Plus I’m already paying a % towards the Medicare Levi each financial year.
From your personal experience is hospital private insurance actually worth it? Especially looking at it in the long run.
I’m considering removing it and only paying towards extras to which I plan to put both my children on.
Extras - top cover (after 01.10)
Solo - $38 fortnight
With kids - $64.50
Will be speaking with my accountant in the next few weeks but if I do decide to remove the hospital cover, would you know how this will financially affect me each year? I worry because I will be earning over $90k in two years. I have no idea how it all works.
Also to add. For the past three years ($3,951 later). I have never needed to use my private hospital cover and everything that was done hospital related was through the public system and done quickly.
Apologies in advance regarding all the questions it’s just I was raised to believe that private health insurance especially hospital cover is an absolute must in life. But since doing my own calculations I could be putting that money towards a house deposit, a bigger car, holiday etc.
I just feel ridiculous paying just under $40k towards something that I “may” need in my 50-60s. Surely I would be able to receive the same care through the public system without being charged a ridiculous amount of money.
Please make a decision for me 😩🤯
3 Replies
If you and your children are considerably healthy and don't visit specialists on a regular basis, me personally, I don't think it is necessary. You can always pick it back up later on down the track.
This is truly a personal decision, and like any insurance policy its there to cover you if something goes wrong.
The reason ive kept mine is because when my son was little he desperately needed an operation and was put on a 18mth wait list, it was horrible watching him suffer when the op would have been done straight away if we had insurance. I dont ever want my kids to go through that again, so for me its peace of mind.
However you are right when you say we have excellent public health and of course if you or your kids needed life saving treatment you would receive it instantly and for free.
Personally, i would keep it, you have a good job and would kick yourself later on if you needed it
I had top hospital and now we only have extras and pay $45 a fortnight for a family
Of 5, kids are covered.
I recently did our tax and the accountant said that you would only pay the extra Medicare levy if our income exceeded $180k a year.
To me I was paying $165 a fortnight and wasn’t using it. My view is, if it’s 100% urgent, you’ll get seen in public.