Considering whether to purchase private health insurance as a young person is a big decision. Like any significant financial move in our lives there are both benefits and drawbacks to weigh up before making a choice. For those of us early in our careers or still studying, understanding these aspects can help make an informed decision that we won’t end up regretting later.

The biggest advantage of private health insurance is access to a broader range of healthcare services. Public hospitals can be great, but they can also have long waiting times for elective surgeries or specialist appointments. This can make a great deal of difference to your comfort and overall experience if you do need to undergo something like this. Private insurance can reduce these waits, providing quicker access to certain treatments. This is especially helpful if you have a chronic condition or need ongoing specialist care.

Private health insurance often includes extras like dental, optical, and physiotherapy services. These aren’t typically covered by Medicare, so having insurance can make maintaining overall health more affordable. For example, regular dental check-ups can prevent more serious issues down the track, and having optical cover means you can get new glasses or contacts when needed without a huge out-of-pocket expense.

However, the cost is a significant consideration. Private health insurance can be expensive, and for many of us, it might feel like a waste of money if we rarely need medical treatment. It’s important to weigh the cost against the benefits. Sometimes, the peace of mind and the convenience of faster service can be worth it, but this isn’t always the case.

There are government incentives that can make private health insurance more appealing. The Australian Government offers a rebate on private health insurance premiums, making it more affordable. Also, if you earn over a certain amount and don’t have private health insurance, you might have to pay the Medicare Levy Surcharge, which is an additional tax. For many young professionals, this can be a compelling reason to consider getting insured.

When approaching health insurance, it’s smart to shop around and compare different policies. Not all health insurance is the same, and the cheapest policy might not cover what you need. Look at what’s included in each policy and think about your current and future health needs. For instance, some policies might not cover pregnancy-related services, which might not matter now but could be relevant in a few years.

Consider higher excess plans. These plans have lower premiums, which means you’ll pay less each month, but if you need to make a claim, you’ll have to pay more out-of-pocket. This may be an option to think about if you’re generally healthy and don’t anticipate needing a lot of medical care.

It’s also useful to review your insurance regularly. As your life circumstances change, so might your healthcare needs. What worked for you as a student might not be the best option once you start working full-time. Adjusting your policy can ensure you’re not paying for services you don’t need.

For students, particularly First Nations students, there are specific programs and scholarships that might include health cover or offer financial support for healthcare needs. Universities often have health services and partnerships with local healthcare providers, so check what’s available through your institution.

For those of us in professional roles, workplaces sometimes offer health insurance as part of their employment benefits. This can be a cost-effective way to access private health cover. Even if it’s not included, some employers provide discounts or subsidies for private health insurance.

It’s also worth noting that our community faces unique health challenges. For young Indigenous professionals, cultural competency in healthcare is important. Some private health insurers offer policies that provide access to culturally appropriate services, which can be a valuable benefit.

In conclusion, while private health insurance has clear benefits, it’s not a one-size-fits-all solution. Check out your personal health needs, financial situation, and the available incentives. Take advantage of student programs, workplace benefits, and government rebates to make the most informed decision. Regularly reviewing your policy and being proactive about healthcare can help balance the costs and benefits, ensuring you get the coverage you need without unnecessary expenses.

Like every article on this website, this is not personal financial advice.