Should you compare health insurance policies online or via phone?

Fact Checked
Updated 13/08/2024
Should you compare health insurance policies online or via phone?

Time to read : 4 Minutes

Online health insurance comparison tools are designed to help anyone shopping around for a better deal to evaluate their options… and make better informed decisions. 

But this raises the question: are traditional methods of comparing health insurance such as over the phone, still relevant in today's digital landscape?

To answer this question, we’ll: 

  • look at the considerations for comparing health insurance 

  • weigh up the pros and cons of online and phone-based comparisons.

What should you consider when comparing health insurance?

Finding the right policy involves reviewing your current policy details, researching different benefits or extras, and looking for a policy that covers what you’ll need in the future as well as today. 

It’s not a quick task, or a particularly enjoyable one.

So here’s a quick list of things to consider when comparing your health insurance:

Give your current policy the once over 

Is your current policy a good fit for what you need today? Have you got any operations coming up? Is there anything you don’t have today that you think you might need in the future, like physio or coverage for crowns or root canals? Is there anything you don’t need now that you did in the past, like pregnancy?

Ultimately, you want to work out if your policy is still a good fit or is missing anything. 

Factor in your life stage and plan accordingly 

Whether you play sports, plan to start a family, or are simply feeling that wear and tear on your body as you get older, evaluating your ‘life stage’ will help you have a realistic idea of the value a different policy could give you.  

Be aware of waiting periods

Waiting periods apply when you upgrade to a different level of cover or up your extras benefits.

Be super clear on what these waiting periods are with your new policy. It’s extremely unlikely that you’ll be able to use parts of your new policy straight away, and they differ between items.

Be aware: pre-existing conditions typically come with a 12 month waiting period.

Top tip: new waiting periods typically don’t apply when you’re switching to cheaper equivalent cover. 

As long as you’ve served all your current waiting periods and you’re not upgrading any aspect of the cover, you should be able to enjoy the benefits of your new policy straight away.

Waiting periods for hospital cover:

*The private health insurance act 2007 states that there are pre-determined waiting periods in hospital procedures for certain extras. They are as follows:

  • 12 months for pre-existing health conditions

  • 12 months for pregnancy and assisted reproductive

  • 2 months for psychiatric, rehabilitation, and palliative care, even for a pre-existing condition

  • 2 months for new conditions in all other circumstances.

Waiting periods for general treatment:

  • 2 months for benefits for general dental services and physiotherapy 

  • 2-6 months for benefits for optical items 

  • 12 months for benefits for major dental procedures 

  • 1-3 years for high-cost procedures such as orthodontics.

Is a self-serve online health insurance comparison for me? 

Online health insurance comparison methods include tools or calculators that help you gain clarity on insurance policies by comparing pricing, extras and excess covers. They allow you to self-serve without requiring human interaction and can be done at no cost… but they can take up time in research. 

The benefits of online health comparisons:

Enhanced convenience: online tools enable you to compare insurance from anywhere, at a time that suits you. 

Assistance in decision making: online tools are useful during the initial stages of comparing policies. They help you compare your current policy with other policies  in the market, along with specific details on extras. This enables you to narrow down your options for your final selection. 

The downsides of online health comparisons

According to a 2021 study by Gartner, people who exclusively use digital channels are 23% more likely to regret their purchase. 

Why? Health insurance is complicated. Even if you’ve held cover for a while, there’s still risks involved when it comes to a DIY approach. 

Maybe you’ve not spotted waiting periods? Maybe you didn’t realise that you’re actually getting less lack at the dentist than your current policy? Maybe that super cheap fund doesn’t have an agreement with your nearest hospital?

While the upside is it’s quick, easy and convenient to buy online, it’s also possible that you’ll need to go through the whole process again a few months later when you realise you’ve purchased the wrong policy.

What about phone-based health insurance comparisons?

Personalised support and assistance 

Choosing a health insurance policy is a personal decision, influenced by lots of factors that can be overwhelming and information overload. Understanding whether certain extras or benefits will suit your needs adds another layer of complexity. 

Talking with an expert, like the team at Compare Club, can simplify this process. They can guide you through every aspect of comparing policies so you can make an informed decision.

Instant clarification and change

Online comparison tools can help to a point, but if you have a bunch of questions, that’s where the help may stop. 

You can’t beat having an expert respond to your questions in real time as they arise.  And it’s with this level of service and guidance that you can truly feel confident in your choice. 

Caters to people who prefer phone conversations 

Different generations prefer different communication channels. While younger Aussies are more inclined to self-serve via digital tools, older people may find online systems tricky and prefer to talk to someone. 

So even with society's reliance on technology and AI, phone-based health comparisons still play an important function today.

Bottom line

While some people may be fine to navigate private health insurance comparisons online, others may prefer to talk to an expert. This could be because you become stuck, have questions along the way or just prefer someone with the know-how to do the work for you. 

It’s also common for people to start the process by looking online and then switch to talking to an expert.

How do we deliver the right health insurance policy solutions?

Compare Club^ uses  IPscape’s cutting-edge contact centre software and customer experience solutions so you can be confident we’ll find the right health insurance plan for your needs.

* https://www.ombudsman.gov.au/__data/assets/pdf_file/0017/35612/Waiting-periods-DL-Fyler-Web.pdf

^ Compare Club compares selected products from a panel of trusted insurers. We do not compare all products in the market.