Knowing which level of cover suits you best requires careful consideration of your life stage, health needs, and financial circumstances. When you hold private health cover, its good practice to always review your cover each year to ensure you are on the right level for your needs.

What Life Stage Are You In?

When reviewing your private health insurance, a good first step is to think about where you are in life. At Navy Health, we like to think of four key life stages that could guide your decision-making in choosing the right level for your needs.

Young and healthy

You may be in a position where you are young and healthy and want to continue enjoying life knowing you’re covered in an emergency. At this point in life, you may be seeking a health insurance cover that will reduce your yearly tax and focuses on lifestyle extras. This way your health insurance could help you maintain your health so you can continue living your life without much hassle. This is common for people newly working full-time in defence or defence-related industries or also partners of those in the ADF.

Planning for your future

You also may be planning for your future and looking for a cover that might prepare you for any big life changes, including starting a family. With a lot going on, you’re likely looking for a cover that is comprehensive, but straightforward and easy-to-understand. A comprehensive cover could be important as your needs may change over time, and you may want a cover that could help you manage this. Again, many individuals in this stage are full-time defence workers or partners of defence members, trying to juggle multiple priorities with the confidence that their health cover has them covered.

Protect you and your family

On the other hand, you might be pretty settled in your everyday life and seeking to find a cover that will protect you and your family. At this point, you’re likely wanting a level of cover that is comprehensive and offers the highest level of benefits. Having peace of mind is probably a priority for you, and you want to be rewarded by your insurance so look for the best value from your cover. Many people at this stage are still working full-time in defence or defence-related industries or are part of a defence family.

Protect your lifestyle

Finally, you may be newly retired or empty nesters and are looking for a cover that will protect your lifestyle. You’ve worked hard, and now you’re likely looking for a cover that offers preventative care that is also comprehensive. You want to focus on enjoying life, so you want a cover that you know will protect you when needed. Many at this stage are transitioning from defence-related roles or retirement, managing this shift into civilian life while ensuring their health is well-protected for the future.
It seems like a simple step and might be obvious for some, but once you understand what you’re looking for, it becomes much easier to make informed decisions about the right level of cover to align with your specific needs and life stage.

How can Private Health Insurance Fit Your Lifestyle?

At any life stage, the right level of private health insurance is the level of cover that matches your lifestyle. Now that you know where you sit, start by asking yourself:
• What health services am I currently using? And how often do I use them?
• What services might I need in the future? And how often will I need them?
Think about your current habits. Are you regularly visiting specialists or using extras like dental, optical, or physio? If you’re not, think about if you would like to. Are there any extras you’re not taking advantage of that you want to be? For example, did you know remedial massages can be covered by your private health insurance? Learn more about how to make the most out of your extras cover here.
As you age or your family grows, you might need additional services like maternity, higher hospital cover, or treatments for chronic conditions. These are important factors to consider when reviewing your plan and deciding on the right level.

Weighing the Benefits Against the Costs

Next, you need to consider the difference in benefits from each level. At Navy Health, your Extras premiums reflect how much you get back. Higher premiums mean more coverage when you make a claim. Now that you have considered what services you use, you can compare the costs of each level and decide what suits you best.
The same applies to hospital cover. The higher your premiums, the more extensive your cover.
Don’t forget to factor in how you could be impacted by government penalties, such as Lifetime Health Cover (LHC) loading or the Medicare Levy Surcharge (MLS). These can affect the amount of tax you pay at tax time if you don’t maintain the right level of cover.

What About a DVA Card?

If you have a DVA card, it’s important to assess which services are already covered by DVA and where gaps might exist. Although DVA covers a wide range of health services, now that you’ve clarified your needs, you may notice that some services aren’t included but are still important for you to have. Private health insurance may offer additional cover for services not fully covered by the DVA. Ensuring there are no gaps is crucial, as any uncovered services could leave you paying out-of-pocket for costly treatments.

Review Navy Health’s Levels of Cover

Finally, take a moment to review Navy Health’s different levels of cover that can be found here. Whether you’re “young and healthy” or wanting to “protect your lifestyle”, it’s crucial that you choose the right level of health cover to fit your life stage. Make sure you’re on the right level that suits your current and future needs.
Choosing the right level of private health insurance means balancing your lifestyle, needs, and budget. By evaluating your life stage, health service use, and potential future needs, you can make an informed decision that benefits you now and into the future.
If you do decide to change your level of cover its important to be informed about the risks and how they might affect you. Read more about that here.