Getting the right health insurance

Making sure you get the right health insurance policy can be just what the doctor ordered, as it could provide a valuable financial safety net should you fall ill.

According to the Sydney Morning Herald, there are number of factors to consider when selecting a health insurance policy.

Steve Johnston, health policy officer with Australia's largest consumer protection group Choice, told the publication that one of the first things to recognise when looking for a new policy is that even after the excess payment - the amount the consumer agrees to pay until the insurance takes over - there may well be "gap" expenses associated with some policies.

These vary from fund to fund, but some policies for example have a maximum daily amount they will pay out for a hospital bed.

Sue Bowman of comparison specialist iSelect added that it is also essential to check whether a policy offers full or restricted cover.

In some cases, consumers may be able to save money by voluntarily adding restrictions to their policy. Younger, relatively healthy consumers could, for instance, exclude hip replacements from their policy as they are unlikely to need such cover, the site says.

Another important factor to check is whether a policy offers an annual limit or a per visit limit on cover.

Annual limits are better suited to people who use health services such as physiotherapists regularly while per visit payouts may be more appropriate for those who use services more sporadically.

Finally, Mr Johnston said, once consumers have selected a policy they should review it every year to ensure it still meets their circumstances. It is also worth carrying out an annual review of the policy's cover and charges.

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