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Myth 3 - ``I Have Private Health Insurance, I'm Covered!``


Private health insurance is a great way to protect you and your family against medical expenses associated with illness or injury. The government provides incentives to Australians who have private health insurance, including 30% tax rebate on premiums and a reduction in the Medicare surcharge levy.

Private health insurance, however, can leave you with protection gaps and should be used as a complementary product to term life, TPD, trauma and income protection insurance.

A good private health insurance policy will cover the immediate expenses associated with an illness or injury, while life insurance will protect your lifestyle from being disrupted.

What Is Private Health Insurance?

There are two types of private health insurance cover available: hospital cover and ancillary (or extras) cover.

The amount of treatment you are covered for depends on a number of factors, including the level of hospital cover you purchase, the hospital and doctor you choose to treat you and whether they have an affiliation with your health fund.

Will Private Health Insurance Cover The Cost Of All My Medical and Rehabilitation Costs?

Not necessarily. Private health insurance may not cover the total cost of the doctor’s services provided to you in hospital, or your out of hospital rehabilitation care including the costs of your medication.

This can leave you with a gap between the costs of the treatment and the amount covered by your health fund. This is why life insurance is so important.

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