Why private health insurance is more important than ever in 2026.

ARTICLE

1 January 2026

4 min read

Is private health insurance really worth it?

It’s a question we get asked all the time - and for good reason! If you’ve ever faced a big medical bill, a long wait to see a specialist, or ongoing costs for services like optical and dental, you’ll understand the financial and mental toll our health can sometimes take. That’s where private health insurance can help.

At AIA, helping Aussies live healthier, longer, better lives is at the heart of everything we do. From our policies to our personalised, science-backed health and wellbeing program, AIA Vitality, we're here to help you live well every day. Not just when emergencies strike.

So, what can private health do for you? Let’s break it down:

Consistent care determined by you.

Instead of being passed between unfamiliar specialists, private health insurance puts you in the driver’s seat. It gives you the opportunity to choose who treats you, when and how. Not only can this empower you to play a more active role in your overall health journey, but it also enables you to build an ongoing relationship with a healthcare provider who knows your history and understands your needs. This kind of continuity can make a real difference. Especially if you're managing a long-term condition or navigating a life stage like pregnancy, where regular appointments are key.

More benefits, less worries.

While we’re incredibly lucky to have universal healthcare here in Australia, Medicare doesn’t cover everything, like optical, dental, physiotherapy and private hospital costs. So, when the unexpected happens, those out-of-pocket expenses can start to add up, placing extra stress on you, your loved ones, and your overall wellbeing.

Private health insurance can help ease that financial pressure by allowing you to claim certain medical expenses not covered by Medicare. Whether you rely on glasses every day or need an emergency filling, private health insurance can help you access the care you need, without those extra out-of-pocket costs. And as an AIA Health member, you can enjoy additional benefits to help you live well and stay healthy, including free preventative dental checkups, access to mental health apps, consultations with nutrition experts, and more. Completing these checks support members to earn AIA Vitality Points to unlock greater discounts and rewards.

Skip the queue.

With public hospitals busier than ever, being able to access the care you need, when you need it, can be a huge relief, especially when you’re not feeling your best. Whether you're dealing with something serious or simply want to avoid a long wait for a routine procedure, private health cover ensures you receive the care you need, while also alleviating some of the pressure on our public health system.

And if you still want to go public? Not a worry. Private health insurance doesn’t limit your access; it simply gives you the freedom to choose the care that’s best for you.

Tools to help you live healthier, longer.

Private health insurance isn’t just there for the “what ifs.” It’s also there to help you live well now and into the future. As more of us look to stay active and independent, private health insurance can give you the tools and support you need to live a long life and stay well while you do.

At AIA Health, we take things one step further with AIA Vitality. Our personalised, science-backed wellbeing program not only supports and rewards you for making healthier choices, from gym discounts and annual health checks to access to preventative health programs, it also arms you with the insights you need to truly understand your health so you can continue to make the best, informed decisions to take care of it. After all, the healthier we are, the better we'll feel.

How AIA Health can help you Do It For Life.

It’s not what private health insurance saves you that makes it meaningful, it’s what it gives you: more time with your parents, energy to chase your kids up the hill, space to do the things you love, as well as you can, for as long as you can.

At AIA Health, our policies have been designed with life in mind. From straight up hospital cover to extras with all the trimmings and a science-backed wellbeing program that rewards you just for taking an interest in your health, we’re here to help you live a healthier, longer, better life every day. To learn more or get a custom quote, chat to a member of our team today.

Save more today and tomorrow.

While public healthcare might seem like the more economical choice, private health insurance can often be the more financially savvy option. For instance, if you don’t have hospital cover by 1 July following your 31st birthday, you’ll pay a 2% Lifetime Health Cover (LHC) loading for every year you delay. What’s more, if you earn over $101,000 and don’t have hospital cover, you’ll be hit with an extra 1–1.5% tax due to the Medicare Levy Surcharge (MLS).

The good news? If you’re turning 31, earning more, or coming off your parents’ private health insurance, now’s the time to act; you could avoid the LHC loading and the MLS and reduce out-of-pocket medical expenses for years to come.

Private health insurance is about more than just cover; it’s about setting yourself up for a healthier, longer life.

Whether it’s staying fit enough to run around with the grandkids, taking that hiking trip you’ve been planning, or just having peace of mind that you can get the care you need when you need it, it’s worth asking yourself: What kind of life do I want to be living 10, 20, or 30 years from now? And what can I do to help myself get there?

Private health insurance may very well be one of the answers.

Staff Writer

Staff writers come from a range of backgrounds including health, wellbeing, music, tech, culture and the arts. They spend their time researching the latest data and trends in the health market to deliver up-to-date information, helping everyday Australians live healthier lives. This is general information only and is not intended as medical, health, nutritional or other advice. You should obtain professional advice from a medical or health practitioner in relation to your own personal circumstances.

Disclaimer:
Copyright © 2026 AIA Australia Limited (ABN 79 004 837 861 AFSL 230043). This is general information only, without taking into account factors like the objectives, financial situation, needs or personal circumstances of any individual and is not intended to be financial, legal, tax, medical, nutritional, health, fitness or other advice. The source information of the articles is current as of the date of publication and may be subject to change. While the information contained herein is believed to be accurate, AIA Australia expressly disclaims any and all liability for representations or warranties, expressed or implied, contained in, or for omissions from, the information.

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