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Save money on private health insurance

27 June 2011 - 5:08pm

Private health insurance costs have been rising by an average of six per cent per year over the past five years, but a new study reveals that savings can be made by individuals and businesses by re-evaluating their current cover.

The Your Money magazine study found that couples and families could save over $2,700 per year by switching plans.

"Even singles looking for a less comprehensive level of cover can save over $1,200 per year, so there’s no reason to spend too much on private health cover," said the magazine's managing editor Jackie Pearson.

This highlights the benefits of doing your research and perhaps talking to an independent health insurance broker to help you find the best deal.

Interestingly, Ms Pearson said a key finding was that you do not have to pay for the most expensive private health cover to achieve a decent level of benefits.

She also warned that some health insurance policies can contain hidden exclusions and restrictions that may cost consumers when they come to make a claim.

"You need to be really careful and read the fine print before signing up to a plan," said Ms Pearson explained. A health insurance broker can help you determine whether or not a particular plan is right for you and may even be able to offer advice on suitable products to consider.