What is the best health insurance for singles? How much does it cost? Everything you need to know about private health cover for individuals

Finding the best health insurance for singles is easy given that you only have to choose what’s right for you — not anybody else.

Doctor with piggy bank in hand representing medical costs

When we talk about health insurance for ‘singles’, what we really mean is cover for individuals – every type of individual. Whether you’re young, recently retired or new to the country.

Finding the best health insurance for singles is easy given that you only have to choose what’s right for you — not anybody else.

Here is what you need to know about singles health insurance, how it works, the lowdown on extras cover (and whether you need it) and some tips on finding the policy that’s perfect for you.

WHAT IS HEALTH COVER FOR SINGLES?

Instead of having multiple people on one policy, single health insurance will cover one person.

When it comes to private health insurance, what an individual might need can vastly differ from what a family, single parent or couple need. And when it’s just you paying the bills, cost is going to be an important issue so you want to get the cover that gives you peace of mind you’ll be able to cover unexpected health costs, without blowing your weekly budget.

And no, despite what the name might suggest singles cover isn’t related to your relationship status. It simply refers to a policy for an individual. For example, some couples might have two singles policies and/or someone who lives with their family might have their own singles policy.

HOW DOES SINGLES HEALTH INSURANCE WORK?

When looking for the best health insurance companies for individuals, it’s important to get the cover that suits your stage of life, general health, income and preferences.

Singles health cover can be more tailored to the individual, as they may not need the same or want different benefits than those offered in the family policy.

Private health insurance is split into two products: hospital cover and extras cover. You can purchase either of these products on their own, or combine them into the one policy.

Hospital policies cover some of the costs of treatment in a private hospital while extras can help cover other medical services such as dental, physiotherapy, optical and more.

Young singles may not have as many healthcare needs as older individuals. That probably means taking out low-level singles hospital cover (just in case) and a handful of benefits from an extras policy.

If you’re closing in on 30, taking out hospital cover is advisable so you can avoid the Lifetime Health Cover (LHC) loading. If you don’t have a hospital insurance policy by July 1 following your 31st birthday, you’ll pay two per cent more in premiums for every year you don’t have cover.

That means that if you wait until you turn 40 before you get it, you’ll end up paying 20 per cent more in premiums.

Once you hit middle age, you’ll probably start to take your health more seriously and take out cover that’s more comprehensive and includes treatment in private hospitals as well as complete extras.

IS SINGLES HEALTH COVER WORTH IT?

If you’re young and healthy, and not planning a family anytime soon, you might decide you don’t need private health insurance. (But be warned — if you do fall pregnant unexpectedly there are waiting periods for pregnancy related procedures.)

However, having it can help you avoid paying both the Lifetime Health Cover (LHC) loading and the Medicare Levy Surcharge (MLS).

The Medicare Levy Surcharge (MLS) is a fee imposed on Australians who earn more than $90,000 each financial year but don’t have suitable private hospital insurance. It’s intended to encourage high-income earners to take out private hospital cover and ease pressure on the public health system.

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It’s important to do your homework before making a decision. Picture: iStock

WHAT SHOULD YOU LOOK FOR IN HEALTH INSURANCE FOR INDIVIDUALS?

If you’ve decided that private health insurance is worth having, be careful to not just choose a policy based solely on price. Cheaper policies might be tempting, but their level of cover can be less extensive and exclusions and restrictions can apply.

To avoid or minimise unexpected and unnecessary costs to you, the key things to examine on existing or potential policies are out-of-pocket expenses, ambulance cover and extras.

An out-of-pocket cost or expense – sometimes known as a gap payment – is the difference between the amount a doctor charges for a medical service and what Medicare and any private health insurer pays. Lots of health insurance funds have arrangements with specialists, which aim to help reduce the costs you pay in doctors’ fees when you go to hospital.

Medicare doesn’t cover the cost of ambulance services and the way ambulance fees are charged and paid varies from state to state so it’s advisable to look into what you may need and ensure your health insurance offers it.

The best extras policy for you will be the one that matches your lifestyle. If you wear glasses, look for a policy that includes optical. If you’re sporty but have an ongoing injury, look for a policy with a high limit for physiotherapy.

According to the Australian Prudential Regulation Authority (APRA), dental is consistently the most popular extras benefit and in the three months prior to September 2020, more than 11 million dental claims were made.

With insurance premiums about to rise on April 1, it’s a good time to compare health insurance and ensure you’re getting the best value.

Singles health insurance: Frequently Asked Questions

Is couples health insurance cheaper than singles cover?

A couples policy doesn’t work out cheaper than two single policies. This is because Australian private health insurance is based on the ‘community rating’ principle, which means insurance companies can’t charge one person more than another for the same policy.

Also, a couples policy may affect your extras as they’re still classified as “per person” limits, so if your partner is yet to claim on their optical and you’re hanging out for some new glasses, bad luck buddy. They’ll only be able to claim on extras for their own personal use.

Is singles health cover different for men and women?

Unlike life or car insurance, health insurance doesn’t consider sex when setting premiums.

Can you get singles health insurance if you have pre-existing health conditions?

You can get singles health insurance to cover your pre-existing health conditions, but a waiting period of up to 12 months may apply before you are able to claim benefits on that cover.

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This article was created in sponsorship with iSelect.

Originally published as What is the best health insurance for singles? How much does it cost? Everything you need to know about private health cover for individuals