(PRLEAP.COM) So you’re self-employed, which probably means you’re busy trying to juggle a million things at once including a business, a family, not to mention your finances. Thankfully navigating your way through private health insurance choices doesn’t have to be a tricky task - let Choosi’s easy comparison service do the hard yards for you. Here are a few things to consider if you’re self-employed and looking for a policy that suits your budget and lifestyle needs.
You won’t pay more than others.
Sometimes self-employed individuals go without private health insurance because they think they cannot afford it. But compare covers with Choosi and you’ll find there are plenty of affordable options.
In Australia, the federal government regulates health insurance providers to keep private health accessible for all. Members of the same fund are therefore charged equal premiums, provided that the policy and coverage is exactly the same. This means you won’t be discriminated against because of your occupation, age or medical risk except in limited circumstances. So being self-employed doesn’t necessarily prevent you from protecting yourself and/or your family with private health cover.
You can save with rebates.
The government’s private health insurance rebate can help offset annual premium costs, offering rebates of up to 40 per cent per annum. Effective July 1, 2012, the rebate percentage is income tested, so the amount you’re entitled to get back will be based on your age, annual income level and the number of dependent children you have. For self-employed low and middle-income earners, the 30, 35 and 40 per cent private health insurance rebates have remained in place.
You can also save on tax.
High-income earners can avoid paying the mandatory Medicare levy surcharge (MLS) if they hold an appropriate level of private hospital cover. As of July 1, 2012, the MLS is income tested. You can expect to pay a 1 per cent MLS if you earn a single annual taxable income over $84,000 or a combined couples/family income over $168,000. This rate gradually increases to 1.25 and 1.5 per cent for higher income brackets. If it looks like you will earn more than the government’s threshold, you may consider purchasing in private health insurance to avoid paying the MLS come tax time.
Now that you know where you stand, it’s time to compare policies with Choosi and find an affordable private health insurance deal that suits you.