What is health insurance and why do you need it?

Health insurance can help pay for private treatment, meaning you're less likely to be stuck on a waiting list.

amy smith
Amy Smith
Updated 14 December 2021  | 2 mins read

What is private health insurance?

Health insurance – also called private medical insurance – can help cover the cost of private treatment for pre-agreed conditions.

You pay a set amount monthly or annually, and you’ll also likely need to pay an excess when you claim but you’ll be able to access private health care when you need it, depending on what your cover includes.

Exactly what’s covered varies, but it usually includes hospital stays, health checks, tests, surgeries and out-patient care. Some policies also cover cancer, mental health and physiotherapy.