Media Release

One in four inherit their health fund

  • finder.com.au research shows 1 in 4 Australians inherit their health fund from their parents.
  • Federal Government announces discount to encourage young Australians to sign up for health cover.
  • Australians stay with their health fund for 11.8 years on average.

18 October 2017, Sydney, Australia – Following the Federal Government’s private health insurance reforms announcement, more young Australians will be looking to Mum and Dad for advice on choosing a health fund, according to finder.com.au, the site that compares virtually everything.

The latest finder.com.au survey of 1,400 Australians with health insurance found 28% (one in four) inherit their health fund from their parents.

“Our research shows that Australians are heavily influenced by their parents when it comes to choosing a health fund for the first time,” said Graham Cooke, Insights Manager at finder.com.au.

“With the announcement that a discount on premiums will be offered to Australians under 30 to encourage them to sign up for private health cover, even more will be looking for help choosing the right policy,” he said.

The research also found that only one third of those who inherit their health fund switch to a different insurer or ditch cover later in life.

“Australians are extremely brand loyal when it comes to health insurance. Our previous research found Australians stay with their health fund for nearly twelve years on average,” said Mr Cooke.

Women are more likely to be influenced by their parents when it comes to choosing health insurance, with 30% selecting the same health fund initially, compared to just 24% of men.

“Unsurprisingly, Australians living at home with parents are much more likely to be with the same health fund as their mum and dad (47%), compared to 25% of renters and homeowners,” said Mr Cooke.

“Australian adults can usually stay on their parents health insurance policy until the age of 25 or when they stop studying full time,” he said.

Mr Cooke encourages young Australians to compare their options online before signing up to a policy.

“The concern is many young Australians may be signing up for health insurance without understanding what they’re paying for in terms of cover.

"It pays to do your research so you’re not paying for cover you don’t need, like hip replacements.”

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Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

About us

More than 3 million Australians turn to finder.com.au every month to save money, time and make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.

Our free service is 100% independently-owned by two Australians: Fred Schebesta and Frank Restuccia. Since launching in 2006, we’ve helped our users make more than 17 million decisions.

We continue to expand and launch around the globe, and now operate in the United States and United Kingdom. For further information visit www.finder.com.au.

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