What Do I Need to Know to Buy Health Insurance for Parents?

LBaconIcecream on 26/03/2017 - 06:15

Hi All, my parents are approaching 60, they are doing light labour work not anything intense or dangerous, and with no regular medication requirement. But I do anticipate their health to be less robust as they are at quite an old age now…

I am thinking of buying them health insurance, none of us have any at the moment, so I am a little clueless, if any of you could answer the following, that'd be great:

  1. Is it recommended to have private health insurance?
  2. Is it very costly for my parents to buy health insurance now? They had some minor operations before, but nothing too major.
  3. Around how much will the cost range?
  4. Anything other info/tips I should know in making this decision

Cheers in advance.

Health & Beauty

Comments

  • [Deactivated] on 26/03/2017 - 09:29
    1. After 30 I am pretty sure there is a Loading % of 2% on your yearly premium which does add a sting to the cover, if they pay a year ahead they could negate this charge in the form of a bigger discount from the PHI.

    http://www.privatehealth.gov.au/healthinsurance/incentivessu…

    Maximum of 70% for the loading

    1. Would be costly based on loading above, probably not worth it but it all depends on what you want from your cover
    2. Cost range varies, have you done some comparision quotes on comparethemarket etc?
    3. I personally wouldn't bother, they are now almost 60, thats almost 30 years of Loading added to their cover for not having it after 30 years old, they have gone so far with the public system and seem to of done pretty good, Public Health system in some cases is just as good anyway (subjective and my own personal experience)
    4. How are they currently health wise, if theyre doing okay then I would not waste further money on cover

    As you said yourself, they are doing light duties, seem to be okay in health, its just another expense yearly for them which could go towards retirement etc

    Personally I wouldn't bother with PHI and would focus more on Life Insurance to ensure ample coverage once they do get ill / pass on etc

  • NancyCat on 26/03/2017 - 11:21

    What you called 'minor operations' could be classified as 'pre-existing conditions'. Make sure you check with the insurance company on what they cover/not cover.

  • BaconIcecream on 27/03/2017 - 05:51

    Doesn't sound like it's a good idea to go into PHI for parents now! TA

  • BigTed on 27/03/2017 - 15:21
    +1

    The 'stick and carrot' approach used by the government only really works if the stick is unattractive, and the carrot is attractive.
    I assume from your post that your parents haven't had PHI before.
    So - with the age loading they would get hit with quite a large additional cost. So, that's a stick AGAINST taking it out.
    Also, you don't mention their income, but nor do you mention the MLS so I will assume they are below the threshold. Given this, again I think that this stick doesn't apply.
    I would also guess that they have managed without PHI up to now - so no issues there.
    Frankly, unless there is some good reason you have for taking PHI up, I can't really see the case for it.
    Frankly if I was below the MLS threshold I probably wouldn't bother with it the way things are going.

  • [Deactivated] on 28/03/2017 - 14:22

    how much you spend on your parents insurance is the direct inverse of your inheritance.

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