In our Episode 7  Money Extra segment, we address health insurance.

It’s an infernal dilemma – do you need private health insurance? It’s a significant cost, and it usually still leaves a lot of out of pocket expenses for medical services.

In this segment, Jodi Bird from the consumer organisation CHOICE takes you through the basics to help you make the decision.

It’s important to know the two components of private health insurance – hospital and what are termed “extras” for dental, optical, physio and other services.

Jodi Bird suggests you make a list of the reasons you might need health insurance. For example you might be looking at a joint replacement in the coming years. Is there a waiting list for the procedure you need? If you need to avoid waiting, then private hospital cover might be desirable.

Do a comparison online using CHOICE, and perhaps one or more of the health insurance comparison websites. Calculate how much you realistically spend annually on extras such as dental compared with the cost of the premiums.

Note that CHOICE receives no commissions for recommendations and offers independent unbiased advice. Other online comparison services may not disclose commission details.

Money Extra is brought to you with the support of Baby Boomers Guide sponsor, the Ecstra Foundation.  The foundation is a grant-making charitable organisation committed to building the financial wellbeing of all Australians within a fair financial system.

Useful links –

Choice health insurance comparison

Do you need health insurance: ask yourself these questions

Government health insurance comparison

Canstar health insurance comparison