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5 reasons to take out health insurance if you’re under 30

By  AAMI

Whether it’s funding your weekly social outings, grabbing a green smoothie on the way to work or forking out gym membership fees so you can look and feel your best, staying healthy can come at a cost.

So, when you find a way to make healthy living essentials, like health insurance, more affordable, it’s time to pay extra attention (and not extra cash)!

Here are five tips from the AAMI Health Insurance Team to help save money with your health insurance today.

1. Save on tax

No one loves tax time, but if you’re earning money, you’ll likely have to pay a percentage of your income to the government.

However, if you take out and keep AAMI Health Insurance Hospital Cover, you could avoid paying the Medicare Levy Surcharge (MLS). The MLS is an extra 1% to 1.5% in tax paid by Australian residents who earn over $90,000 for singles (or $180,000 for couples or families) and don’t have private hospital cover. In other words, you may be paying up to $900 more in tax for every year you don’t have the right level of hospital cover*.

To avoid paying the MLS, join any AAMI Health Insurance Hospital Cover before 1 July and maintain your hospital cover for the full financial year. Find out more about how to calculate income and the income brackets for MLS purposes and different surcharge rates that may apply to you through the ATO’s dedicated page.

2. Avoid the LHC

No one wants to pay more than their friends for the exact same thing, but that’s what could happen if you don’t take out hospital cover.

The Lifetime Health Cover (LHC) loading is a government initiative that sees an additional 2% added to your hospital premium for each year you don't have private hospital cover before the first of July, following your 31st birthday. The loading increases each year up to a maximum of 70% and will only be removed after 10 years of continuous hospital cover.

This means if you sign up at the age of 40, you could pay an extra 20% for hospital cover, compared to your buddy who joined at age 31.

But stress a bit less, you can avoid paying the additional LHC by simply taking out AAMI Health Insurance Hospital Cover by the first of July following your 31st birthday. As long as you keep your private hospital cover, you can avoid paying the 2% annual loading.

3. Get discounts on your hospital cover

Who doesn’t love a discount? With AAMI Health Insurance Hospital Cover, there is an age-based discount (ABD) available, so you may be eligible for up to 10% off your hospital cover.

The ABD is available to new and existing members aged 18-29 who take out AAMI Health Insurance Hospital Cover. And the good news doesn’t end there; as long as you hold your eligible hospital cover, you could keep this discount until you turn 41 and then drop 2% every year after that.

What ABD could you be eligible for?

The discount you’re eligible for varies depending on the age you are when you purchase AAMI Health Insurance Hospital Cover.

Age

Discount

18-25

10%

26

8%

27

6%

28

4%

29

2%

4. Lower your premium with our excess options

It’s important to have options when it comes to your health insurance, which is why AAMI Health Insurance now gives members the option to choose a higher level of hospital excess in return for a lower premium.

You can choose an increased excess of $750 for singles and $1,500 for couples or families. Get a quote online or log into your online account to confirm your current excess amount and call 13 22 44 to change your excess.

5. Save 4% by paying via direct debit

Who has time to pay bills manually anymore? The AAMI Health Insurance Team are all about making your life easier, which is why members have the option to pay their premium using direct debit.

Not only does direct debiting reduce your life admin (no more phone reminders to log onto your account and pay), but the AAMI Health Insurance Team rewards members who use direct debit by reducing your health insurance premium by 4%. Log into your AAMI online account today and update your direct debit details.

When it comes to health insurance, one of the biggest perks that comes with being young and healthy is that you might not need to take out the most expensive cover option. If you want to keep things more affordable, AAMI Health Insurance Basic Hospital Plus could be a good option.

If you’re ready to compare health insurance, it takes just a few minutes to get a quote with AAMI Health Insurance online. If you’d like to discuss your options with an AAMI Health Insurance expert, give the AAMI Health Insurance Team a call on 13 22 44.

Compare AAMI Hospital Cover

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*On an income of $90,001 for a single with no hospital cover, the MLS would be 1% or $900 based on thresholds for individuals for the 2019/2020 financial year.
This article has been prepared by nib health funds limited ABN 83 000 124 381 (nib). Please note that the health and related information above is provided for general information purposes only and is not intended to be a substitute for professional advice. Accordingly, the above information not intended to be used as a substitute for advice from healthcare professionals. We recommend that you see a qualified health professional to obtain advice relevant to your particular circumstances.
AAMI Health Insurance is issued by nib health funds limited ABN 83 000 124 381 (nib), a registered private health insurer, and is marketed by Platform CoVentures Pty Ltd ABN 82 626 829 623 (PC), a Suncorp Group company. PC is an authorised agent of nib and receives commission from nib. Read the Product Disclosure Statement before buying this insurance.