Yahoo Finance Couples v singles health insurance, which is best?
It’s long been said that you should stick with your partner in sickness and in health. But when it comes to your health insurance policy, it might be best to ditch them.
Related story: Answered: Is public or private healthcare better for childbirth?
Related story: Everything your health insurance should cover, according to your age
Related story: Your coronavirus travel insurance guide
Sure, this may sound like tough love. But you might find you’re actually paying a lot more for health insurance when you go under a couples policy. Below, we’ll cover some of the key things you need to know about couples policies to help you decide whether you’re better off as a single (policyholder).
A couples policy will save you time, not money
Sorry folks, a couples policy is no 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. It wouldn’t be fair on all those singles out there if couples were getting a discount for joining policies.
While a joint policy won’t save you money, it can still help you save time. You’ll only have one lot of paperwork to deal with, along with a single bill to the one account.
You can’t mix and match your extras
A couples policy is basically two singles policies billed together. This means your extras are still classified as “per person” limits, so you’re unable to swap them around. If your partner is yet to claim on their optical and you’re hanging out for some new glasses, tough luck. They’ll only be able to claim on extras for their own personal use.
Answered: Is public or private healthcare better for childbirth?
See-ya! The one cost-cutting tactic 2 million Aussies have used
Related story: What do the changes to private health insurance mean for you?
You could end up paying for protection you don’t need
You and your partner will need to have the same level of cover on a joint policy, regardless of your health needs. If one of you needs a more expensive policy, the other will have to fork out as well.
This is most often the case with pregnancy. If you plan to get pregnant and need gold level cover, then your partner will have to pay for it as well. This means you’re paying double pregnancy, which isn’t exactly great value.
Stick to singles policies if you want to start a family
Unless you’re both planning to get pregnant, separate policies make the most sense to avoid double pregnancy cover. Once your baby is born, you can either add them as a dependent to a single policy or upgrade to a family policy.
Choosing a couples policy
Still prefer to take any bit of convenience you can get? Then a joint policy may be your answer (provided you’re happy to pay for the same level of cover as your partner). Before signing up to a policy, take advantage of the tips below to get the most value for money:
Pay upfront. Insurers will usually offer a discount of around 2% if you choose to prepay your premium annually. You might also receive a further discount for setting up a direct debit.
Seek out deals. You can save some extra cash by taking advantage of sign-up bonuses. This can include one month free, waived waiting periods and various other perks.
Negotiate. If you’re happy with your current singles policy, there’s no need to leave – yet. Check with your insurer to see if you can get your partner added, then try and negotiate a cheaper price for bringing them business.
Whether you're planning to start a family or want top-level extras, it’s important to take out adequate health cover that best suits your current life stage.
Sophie Walsh is an insurance expert at Finder.
Make your money work with Yahoo Finance’s daily newsletter. Sign up here and stay on top of the latest money, news and tech news.
Follow Yahoo Finance Australia on Facebook, Twitter, Instagram and LinkedIn.
