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Sydney, July 7: A new Australian Bureau of Statistics (ABS) data found that Australia’s millennial generation is overtaking baby boomers, and the personal finance marketplace and advice company Compare Club is telling the industry that health funds are missing out on this growing market of younger customers.
The company’s data shows that Australians under 30 are willing to buy health insurance but the products available aren’t designed properly for them.
Following the focus on mental health since the start of the pandemic, under the 30s are increasingly seeking out policies with good mental health coverage.
Compare Club’s data shows that under the 30s are 155 per cent more likely to request psychology extras in the cover, but are put off by the cost as mental health is often only available in more expensive policies that provide a lot of features that this age group is unable to access.
Here personal finance marketplace and advice company Compare Club CEO Andrew Davis shares his top tips for how you can use tax time to save money on health insurance.
1. Earning more? It’s not too late to set yourself to pay much less from 1 July.
If you’ve had a pay rise this year and are earning over $90k (or $180k) as a couple, then you’ll be hit by the Medicare Levy Surcharge tax. A Basic Hospital Cover policy will help you avoid having to pay this, but for a few dollars more each week you can get a good quality Bronze policy which means you’re covered for most common hospital procedures and you pay less in tax. Win-win. And if you’re just about to turn 31, taking out an affordable Bronze hospital policy means you’ll avoid Lifetime Health Cover loading (LHC). If you take out hospital cover at a later age, you’ll have to pay an additional two per cent for each year you haven’t held appropriate hospital coverage, so it’s a good investment if you think you’re likely to take out health insurance in the future.
2. Take advantage of the great offers available this EOFY.
Many health insurers have offers such as getting four to six weeks free or waiving two to six month waiting periods on extras. This means it’s a great time to review your health cover and shop around to see if you can get a better deal. As we get closer to June 30th, expect more of these offers to be released to the market. And when you’re speaking to a sales consultant, ask if there are any offers available. For example, six of the funds on Compare Club’s panel currently have offers running.
3. EOFY is a time when savvy consumers set themselves up to save
If you’re reviewing your finances at the end of the financial year, it’s an excellent time to look at your extras such as dental, optical, physio, chiro and more. Four health funds, including Defence Health, reset your extras limits on July 1. As most other funds reset extras at the start of the year, you’re now six months into your annual limits. If you’ve already used up your limits or haven’t touched your extras at all, there’s a good chance you’re on the wrong policy, so shop around and see if you can get better value elsewhere.
4. Don’t catch the loyalty tax virus this winter.
Many of Australia’s biggest funds are yet to implement their annual premium increase. While that means customers will have slightly cheaper premiums for the next few months, the most somebody will save by hanging onto their policy is around $48. But the benefits of switching to better value cover could save you hundreds of dollars. This year we’ve already saved over 36,000 families an average of $443 when they switch to a better-value health insurance policy, so there are big savings to be had.
5. As others pay more for everything you can pay less for many of your largest household expenses
Don’t just stop at health insurance. Use EOFY to really cut your expenses. Our research suggests households who are proactive could save an average of over $7,000 just by moving to a better deal. That includes refinancing your mortgage and car loan, switching energy providers, moving to a cheaper life insurer, and moving the outstanding balance on your credit card, as well as health insurance. A few hours and a handful of phone calls could make a substantial difference to your wallet in the second half of this year.
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