How your home budget can accommodate the cost of private health cover
This statistic isn’t surprising.
According to a survey carried out by Compare the Market 1 in 3 Aussies with private health cover struggle to afford their premiums.
With the cost of private health cover set to rise by an average of 5.6% on 1 April, now is definitely the best time to revise your home budget and see what things you could perhaps sacrifice or switch to be able to comfortably afford the cover. I did it and I’m glad I did!
It’s a myth that you have to be rich to afford private health cover, you just have to be smart with your household budget and perhaps sacrifice some of the everyday non-essential items. Most importantly, I think it’s really important to see your health as a core part of your budget, a priority expense like electricity.
So how do everyday Australians afford private health cover? Well, I actually asked some people how they manage to afford it and this is how they do it.
How they save on their policy
- Remove your extras cover and save this amount in a savings account instead to cover the cost of things like dental and optical. This will reduce the premium.
- If you have children aged 2-17 years old, consider reducing or removing your dental cover (use the suggestion in point 1) and use the Medicare dental allowance for kids where they get $1000 over 2 years every 2 years. To find out if you’re eligible, click HERE.
- If you still want extras, consider splitting them. You don’t need to have hospital and extras from the same insurer.
- Many covers allow you to select only extras you will use in order to save you money.
- If you’re finished having babies, make sure you’ve taken measures first to avoid any unexpected pregnancies and then remove obstetrics from your cover.
- Don’t be afraid to move to more affordable health insurance. Revise your private health cover if you haven’t done so yet and try to do this every 2 years, you’ll normally come out getting a better deal. Click HERE to take the next step in finding the best private health cover for you.
- If you are a young and healthy family, consider removing things like hip/knee replacement, heart surgery etc. from your policy.
- Check if your employer has a corporate arrangement with a health fund, you can usually get a healthy deduction on your health cover.
- Try increasing your excess in order to make your premium more affordable.
- Pay your premium in full before April to get the previous year’s rates.
How they save on living expenses to pay for private health cover
- Cut back on things like takeaway and eating out
- Cancel Foxtel and Netflix accounts
- Make fewer donations to charity
- Cut down on takeaway coffee
- Revise the gift budget. Do you really need to spend that much at Christmas time?
- Consider working on public holidays for extra pay
- BYO lunch to work instead of always buying it
- Cut down the grocery bill.
- Drink less alcohol
- Revise electricity and gas bills and put the savings back into health insurance.
- Reduce your energy use
- Try carpooling to work and split fuel and parking costs
- Revise your mobile phone and internet plan and put these savings back into health insurance.
- Opt for cheaper family holidays
- Revise your home & contents insurance and put these savings back into health insurance.
OK, so you’re thinking “I’m going to miss my morning coffee, my weekly takeaway, my wine…I CAN’T GIVE THEM UP….ahhh!” I don’t blame you, they’re some of my favourite things too.
But don’t fret, consider THESE switching options instead of sacrificing the things you love. It IS doable!
This post was a collaboration between Compare The Market and The Multitasking Woman as per my Disclosure Policy.
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