Pros and Cons of Couples Health Insurance Policies
If you've been with your partner for some time, you're most likely starting to think about those big adult decisions that come with being in a couple - moving in together, getting married and more. But what about couples health insurance? Is it worth combining your insurance? Is it better not to?
There's no right answer. The method works best for you and your partner depends on a variety of factors, including your individual needs and your lifestyles. We've laid out the important things to consider when thinking about taking out a couples health insurance policy so you can decide if it's the best choice for you.
Your Needs & Your Partner's Needs
The most important factor when deciding whether or not you should take out a couples health insurance policy is whether you and your partner have the same needs when it comes to medical coverage.
If your partner has a medical condition that means they may need greater coverage and benefits in the long-term, while you do not, then taking out separate policies as individual may end up saving you more money.
When you enter into a couples insurance policy the coverage is the same for both person. This means you both have access to the same benefits and the same extras that you opt for. If you or your partner needs a higher level of coverage then you will both be under that level of coverage – and you’ll be paying for it too.
Entering into a couples health insurance policy is pretty equal in cost to the two of you having individual policies. Therefore, there is not much of a difference financially. However, if one of you requires a higher level of coverage and you choose a premium policy as a couple, the other person might be paying more than they need to if they only need a more basic package. This means it would be cheaper to have separate policies.
If you haven't taken out private patient hospital cover before you turn 31 you will most likely have to pay the Lifetime Health Cover (LHC) loading of an extra 2 per cent for every year past 30.
When you sign up for a couples policy, the LHC loading of the policy will become the average of your combined percentages. For example, if your partner's loading is 8 per cent and yours was 4 per cent then your average loading will be 6 per cent.
Ultimately, the averaging out of the LHC loading will have very little effect on how much you are paying overall, whether you have a combined policy or independent policies.
Convenience & Cost
Since there is no real difference in cost, the biggest appeal to entering into a couples health insurance policy is the convenience. If you live together and already have a number of other bills to deal with, consolidating your policies into one monthly cost just makes it a bit easier to keep track of.
If one of you does most of the admin in your household and is primarily in charge of finances, then opting for a combined policy makes the most sense. Otherwise, keeping your policies separate is the best choice if only one of you needs higher coverage and the other doesn't. This is where you're going to see the most potential savings. After all, there's no point paying for premiums that you will absolutely never need.
Considering a couples health insurance policy? Compare and Connect can point you in the right direction toward a policy that matches your needs and fits within your budget. Compare health insurance policies here.