What people are sacrificing to afford health insurance
Unless you have an unlimited income, chances are you will have to make some sacrifices to afford certain expenses. Unfortunately, many Australian’s are being forced to sacrifice certain expenses, such as their grocery bill, just so they can afford their health insurance premiums. With premiums rising on the 1st of April every year, the amount of sacrifices families have to make will only get bigger.
How much are premiums rising?
For the 15th year in a row, health insurance premiums will be rising on the 1st of April, with the average yearly increase over the past 5 years being 5.72%. That’s only an average, so some health funds are increasing their premiums by even more than this rate, some funds increased their rates by 18%. Chances are, your income doesn’t increase by an average of 5.75% each year, which leaves you worse off than you were the year before. Since 56% of Australians have health cover in some form, that a lot of Australians losing out every year.
What is the average cost of health insurance?
The amount your family would pay depends on many circumstances, such as the size of your family and the level of cover, but the average cost for a family is $5329, while the average cost for a single parent family is $4491. That makes health insurance one of the biggest expenses in a family’s budget.
What are Australian’s sacrificing?
So what are Australian’s sacrificing to afford health insurance? After all, the money to cover annual health cover rate rises has to come from somewhere. Sacrifices include:
- Getting takeaway
- Eating out at restaurants
- Takeaway coffees
- Charity donations
- Buying lunch at work
- Using the car less
- Using air conditioning less
- Taking shorter showers
What is the alternative to making sacrifices?
What’s the alternative to making the above sacrifices? There is only so much money in a family’s budget, and if the money to pay for health insurance doesn’t come from making sacrifices, it has to come from somewhere else. The answer is the health insurance itself. Unless you have already done your research and found the absolute cheapest policy that suits your needs, you could save hundreds if not thousands of dollars every year, which might give you a little more breathing room in your budget.
You could spend a day or more getting quotes from every health insurer, and then going through each quote to compare policy inclusions and work out which suits you better. An easier way is to use a comparison website that does the hard work for you. Rather than visiting the website of every health fund and filling in endless forms to get quotes, a comparison website will do the work for you. You will be given a list of policies that suit your needs, along with quotes from the providers. These services don’t cost you a cent despite the fact that they save you many hours of hard work, so they are well worth using.