Benefits of Taking out a Private Health Insurance Plan


Why are people investing in private health insurance although it can be expensive? Private health coverage may look like a needless expense for people who do not have a record of serious illness, but is this true?

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Although it is an additional expense for people investing in a private health plan, health insurance helps them to save their money in a number of ways. People sign up to private health insurance for various reasons, based on their circumstances and requirements, but there are several other major reasons behind their investment in a health insurance plan.

Extras not covered by Medicare

Although Medicare rebates provide partial coverage for a range of health treatments, there are a number of treatments for which they do not provide coverage at all. Such treatments can be highly expensive for people without a health insurance plan.

The following are some of the treatments that are not coming under the coverage of Medicare:

  • Chiropractic treatment
  • Physiotherapy
  • Optical
  • Dental

Some private health fund members save their money on one or more of such treatments with health insurance, while other people make investments in private cover to minimize the expense of specific healthcare. There are some healthcare treatments which can be highly expensive for customers with no private coverage.

Peace of mind / security

People who do not have a history of major health problems may not expect to spend time in hospitals, undergo surgery or make payments to huge medical bills, but health issues often crop up without any warnings. No matter what happens, people who have signed up to private health insurance can have peace of mind and security.

In case of emergency medical care, private cover ensures people get the best possible treatment without the need to wait for a long period or pay large medical bills. With health insurance, customers may have access to expensive treatments which are otherwise unaffordable to them. Hence, people need not bother about their future healthcare needs if they have health coverage.

Waiting lists

In Australia, waiting time is consistently shorter for private health patients compared to patients who rely on the public system. In 2015-16, the median wait time was 20 days for private health patients who underwent elective surgery, compared to 42 days for public patients.

In Australia, waiting periods are unacceptably high for public patients and signing up private health insurance is the best option available to avoid long waiting periods. Health insurance is especially useful for patients who have pain or mobility issues, and want to get on with treatment and recovery.


The Australian government has implemented a series of incentives for taxpayers to encourage them to make an investment in private health insurance. The government charges an additional income tax called the Medicare Levy Surcharge (MLS) for Australians who have income above the threshold but do not have private health insurance.

In addition, recent federal government legislation has implemented various incentives for people to sign up private health coverage before the age of 30 years and penalties for those who do not. Whatever may be the reason for investing in private health insurance, iSelect – Health Insurance helps customers compare polices to invest in the best value plan for their money.

About iSelect

As Australia’s Life Admin Store™, iSelect helps customers take care of some of life’s most important purchase decisions. They are proud of the service they provide to the millions of Australians who seek expert advice each year. With plenty of partners and hundreds of policies, plans and products, iSelect gives customers the confidence to make the right call on the things that matter most.

Their dedicated departments cover all of life’s essentials, from choosing the right health insurance, life insurance, obtaining a car insurance quote to a home loan comparison. iSelect can help customers with electricity providers, broadband connections, and even take care of travel insurance.  

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Last updated: Nov 19, 2018 at 10:52 AM

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