5 things to consider when choosing private health insurance

Picking the right cover can be confusing. These tips can help you cut through the noise and find a policy that truly fits you.

With over 30 insurers and thousands of different policies on the market, picking the right health insurance can feel overwhelming. However, focusing on a few important factors can help you weed out the options that won't work, and find a solution that truly fits your needs.

Whether you're taking out cover for the first time or reviewing your existing policy, here are five key considerations to help guide your decision.

1. Extras cover

Pay close attention when comparing extras policies - specific benefits, waiting periods, and annual claim limits can vary wildly between brands so it's worth taking a close look at what's covered and thinking about whether you're actually likely to use the cover.

A high limit on orthodontics might sound impressive but, in reality, it's worthless unless you or your family plan on getting braces. Be realistic about the health services you're likely to need and use, and it'll help you decide which policy is best fitted to your lifestyle.

For example, eligible HIF extras members¹ can claim up to $500 for remedial massages, and up to $300 for glasses, including prescription sunglasses. HIF members² can also access Mental Health Navigator, a confidential service that provides an expert review of your mental health diagnosis and treatment plan.

Remember to pay attention to waiting periods too - this is the length of time you have to wait between buying your policy and claiming a particular benefit. They can vary from no waiting period to up to 12 months. In some cases, you might be able to skip waiting periods - for example, HIF waives all 2-month waiting periods on extras when you join a combined hospital and extras policy by 30 June 2025. You just need to use promo code 8W2M at the checkout - and always check the T&Cs to ensure this is the right product for you.

2. Future healthcare needs

While it's impossible to predict exactly what healthcare issues lie ahead, it's worth taking some time to review family and personal medical history and think about issues that are likely to arise.

For example, if you're thinking about starting a family in the next few years, hospital benefits for pregnancy and birth usually have a 12-month waiting period so you'll need to plan ahead to ensure your waiting periods are served and you can access the cover. If you have children who may require braces, looking for extras policies with generous dental and orthodontic limits could be a good idea.

Remember, the most cost-effective health insurance isn't necessarily the cheapest - it's the one that provides adequate cover for your health needs while meeting your budget.

3. Proactive, preventative healthcare

Prevention is better (not to mention usually easier and cheaper) than cure, so consider what support is on offer to help you maintain a healthy life and avoid preventable health conditions.

For example, eligible³ HIF extras members can claim up to $150 a year for healthy lifestyle expenses, including approved gym memberships, weight management programs, health assessments, quit smoking plans and skin cancer screenings.

By investing in health insurance that supports your wellbeing today, you might be able to reduce your need for more expensive or invasive medical interventions down the track.

4. Take advantage of tax breaks

As well as supporting your physical and mental wellbeing, private health insurance can also help you at tax time.

For example, for the 2025-26 financial year, if you earn over $101,000, or $202,000 for a couple or family (for families with children, the thresholds are increased by $1,500 for each child after the first) and you, your spouse and dependent children do not have the appropriate level of health insurance, you could be required to pay an additional tax called the Medicare Levy Surcharge (MLS), which ranges from 1% to 1.5% of your income for MLS purposes taxable income. For an individual earning $101,000, that could mean an extra $1,000 in tax.

However, you can potentially save this tax by taking out appropriate hospital insurance but you need to do your homework and look at your personal financial situation carefully when examining policies available. An entry level policy such as HIF's Basic Plus Hospital Cover could be worth exploring.

5. Other perks and inclusions

Aside from the specific benefits offered or healthcare categories covered by your policy, look at other perks and inclusions that may be associated with a certain brand or provider.

Some insurers offer additional benefits to members, often to support overall wellbeing or help them save money elsewhere. For example, eligible⁴ HIF members can access discounts on glasses and travel insurance, as well as a range of digital healthcare services that typically require a paid subscription.

Whichever health insurance brand or policy you opt for, always check for perks to see if there are ways you can get more from your policy, and for your money.

Making an informed decision

Finding the right health insurance can feel complicated but by focusing on what matters to you - whether that's specific extras coverage, future healthcare needs, preventative services, potential tax benefits, additional perks, or something else entirely personal to you - you can make a choice that supports both your health and your financial wellbeing.

Learn more about switching to HIF

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Sources
ATO - Taxable, accessible and exempt income

Footnotes
¹Only applies to HIF members on 'Top Extras Cover'. Waiting periods apply. Refer to product factsheets and the Health Cover Guide for more information here.
²Only available for active HIF policies. HIF Members must be 18 years and over to access this program.
^{3, 4}Available to an HIF member that has purchased an eligible product and met payment requirements. Waiting periods, limits, exclusions, restrictions and co-payments apply. Refer to product factsheets and the Health Cover Guide for specific information in relation to products and benefits here. For more information regarding promotions and services please visit HIF.