As we age, our health needs inevitably change, and so should our health insurance*. Yet, many Australians over 60 find themselves sticking to the same old policy year after year. This loyalty can come with a hidden cost that's worth examining. In fact, many are stuck paying for a policy that is no longer the best fit* for their current lifestyle or health requirements.

The rising cost of health insurance is a concern for many, particularly for those on fixed incomes or managing retirement funds. It's easy to overlook the importance of reviewing your health cover regularly*, but doing so can save you from paying for services you don't need or missing out on new benefits that could be crucial for your well-being down the road.

Are you a victim of the loyalty tax? Image Credit: Shutterstock

How much are you overpaying?

If you haven’t compared or switched health insurers* recently, you could be paying an average of 49.04 per cent more than your peers.

Ex-NSW Insurance Monitor Professor Allan Fels claims this so-called ‘loyalty tax’* impacts over 10 million Australian households, costing over $3.6 billion each year in overpayments.

Consider this: does your current policy cover the optometry and dental services you're more likely to use now? What about hospital stays or specialist visits that become more frequent as we get older? And if you're enjoying an active retirement, does your insurance reflect the activities and lifestyle you've chosen?

An outdated policy can be more than just a financial drain; it can leave you vulnerable at times when you need reliable support the most. That's why it's essential to ensure your health insurance is up to date and tailored to your current needs*. After all, isn't peace of mind what health insurance is all about?

Does your health insurance cover match your priorities? Image Credit: Shutterstock

Now, you might be thinking that comparing policies and switching funds is a daunting task reserved for those with endless time and energy. But it doesn't have to be. The process can be much simpler than you expect, and with the right help*, it can be done without any penalties for leaving your current fund.

Enter Compare Club*, a service designed to take the hassle out of shopping for health insurance. Their specialists are adept at identifying where you might be overpaying and where you could be getting better rebates. In the last five years, they've saved customers an average of $300 on annual premiums*.

With access to quotes from multiple health funds, Compare Club's experts are committed to finding you better value health cover*. They'll discuss your options with you, and if you decide to make a switch, they'll handle the heavy lifting.

Key Takeaways

• Loyalty tax affects over 10 million Australian households, costing them significantly in overpayments.
• Professor Allan Fels estimates the loyalty tax could amount to around $3.6 billion a year in overpayments for Australians.
• Australians with health insurance who haven't switched insurers recently may be overpaying by an average of 49.03 per cent.
• Compare Club* offers a service to simplify and assist in comparing health insurance options from various providers, potentially saving customers money on their premiums.
• Switching health cover through Compare Club has saved Australians an average of $300* over the past five years.

So, why not take the time to review your health insurance today*? It could lead to significant savings and ensure that you have the coverage that's right for you at this stage of your life. Remember, staying informed and proactive about your health cover is not just about saving money—it's about securing the best possible care for yourself when you need it most*.

It's never too late to reassess your health insurance* and make changes that could benefit you in the long run. After all, your health is your most valuable asset, and it deserves the best protection you can provide.

Review your health cover today*.

*Please note, members, that this is a sponsored article. All content of ours that has an asterisk next to it means we may get a commission to write an article or post a deal. We do this to assist with the costs of running the SDC. Thank you!

 

[Penny4]

Private health insurance is downright expensive, depending on the choice of cover. People have to decide if they can afford it or not. Public hospitals are excellent for urgent medical issues or surgery. Although, public elective surgeries are placed on a waiting list, with private health insurance this isn't the case.
It all comes down to the mighty dollar.

 

[PattiB]

I certainly cant complain about the cost of health insurance, without it my husband would have suffered more serious consequences than the loss of an eye last year. It was only the constant skin checks done every few months that led to the discovery of the tiniest lump which turned out to be an aggressive invasive BCC. Without Bupa cover he wouldn’t have been at the surgeon or in hospital a week later. We have had very little in out of pocket expenses but the costs that Bupa have paid were a bit scary. Now any little lump or spot it’s straight to the surgeon for checks. He also has an amazing opthamologist who will see him anytime he’s concerned about anything. Private health cover is something that I will never give up so I hope that our budget will always provide for it.