When it comes to securing the right Health Insurance at the right price, getting the excess right is important. But what is it, and how can you use it to your advantage? Here are some key points to consider.

What is it?

In a nutshell, the Health Insurance Excess is the amount you agree to contribute towards the total costs of any Insurance claims you may make.

How are excesses charged?

This may vary by policy and by Insurance provider. For example, your Insurance may charge an excess ‘per claim’ or once per person per policy year.

In this second case, if you selected an excess of $500 and your surgery’s costs amounted to $2,600, you would be required to pay the excess of $500 and the Insurance provider will take care of the rest. Plus, any other legitimate claims made during the same policy year will have to be covered in full by the provider.

Not sure what your policy entails? Please feel free to get in touch: we can help you work out how this works, and maybe find the right level of excess for your needs and budget.

How can you use the excess?

Paying an excess is an easy way to reduce your health cover premium.

The higher the excess you agree to contribute upfront, the lower your premiums will be. But remember, the excess itself needs to be affordable, too. If you choose to adjust the level of excess and increase it, it’s important to consider how much it would cost you at claim time.

What about co-payments?

If you’d like to lower your premiums, the Health Insurance excess is not the only option: you can also consider setting co-payments.

As we said, the Health Insurance excess is a one-off fixed amount that you have to pay upon making your claim. Co-payment is different: it’s where you and your Insurance provider share the cost of treatment on a percentage basis. For example, if you agree to pay 20% of the cost, your Insurance will be calculated based on the provider paying the remaining 80%.

If you’re interested in exploring your Health Insurance options or adjusting your existing cover, we can help you understand both the short and long-term costs, and how to find a policy that’s right for your situation.

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