Getting started with Private Health Insurance

A practical guide to choosing cover, setting it up, and using it with confidence

How to get started

Private health insurance can feel confusing at first, but it doesn’t have to be. When you understand how the process works and what happens after you join, it becomes much easier to make decisions with confidence.
 
Getting started isn’t about making one choice. It’s about working through a few practical decisions that shape how your cover works day to day – what you’re covered for, when benefits apply, and how you actually use your policy once it’s active.
 
That usually means thinking about:
 
  • Whether hospital cover, extras cover, or a combination of both suits your needs
  • The level of hospital cover you’re comfortable with and whether an excess makes sense for you
  • Which extras you’re likely to use based on your regular healthcare habits
  • How waiting periods affect when you can start claiming
  • What managing and using your cover looks like after your policy begins
This page walks you through each of these steps, so you know what to consider, what to prioritise, and what to expect once your cover is in place.

Deciding what type of cover you need

Most people begin by choosing between three options:
 
Hospital cover only
 
Hospital cover is designed for situations where you’re admitted to hospital as a private patient. People often prioritise hospital cover when they want:
 
  • Access to private hospital treatment
  • Choice of doctor for in-hospital care
  • Protection against larger, less predictable medical costs
  • To avoid the Medicare Levy Surcharge (if applicable)
Extras cover only
 
Extras cover supports everyday health services outside hospital, such as dental, optical, physiotherapy, and other allied health services. It’s often chosen by people who:
 
  • Use these services regularly
  • Want help managing ongoing healthcare costs
  • Are less focused on hospital care
Combined hospital and extras cover
 
Combining both allows you to plan for major health events and everyday care.
 
There’s no universal “right” option – the goal is to choose coverage that aligns with how you use healthcare now, while keeping future flexibility in mind.

Choosing a hospital cover level and excess

If you’re taking out hospital cover, you’ll also choose:
 
  • A hospital cover tier (such as Basic, Bronze, Silver, or Gold)
  • Whether to include a hospital excess
Understanding hospital tiers
 
Hospital tiers determine which treatments are included under your policy. Higher tiers cover a broader range of services, while lower tiers focus on essential or limited treatments. Comparing tiers helps you balance cost with access.
 
Choosing a hospital excess
 
A hospital excess is the amount you agree to pay if you’re admitted to hospital. Choosing an excess can:
 
  • Reduce your premium
  • Give you greater control over upfront costs
  • Be suitable if you don’t expect frequent hospital admissions
Excesses are capped in how often they can be charged each year, making them a predictable cost.

Selecting extras that match your healthcare needs

Extras cover works best when it reflects the services you genuinely use.
 
When comparing extras policies, it helps to look at:
 
  • Which services are included (for example, general dental vs major dental)
  • How much the policy pays back per service
  • Annual limits and how quickly they can be reached
  • Whether limits are per service or combined
Extras benefits are typically paid as a percentage of the cost, up to yearly caps. Choosing extras with unrealistically high limits won’t add value if you only use those services occasionally.

What happens when your policy starts

Once you take out a policy, your cover begins from an agreed start date, however not all benefits are immediately available.
 
Waiting periods
 
Waiting periods are standard across the industry and apply before you can claim for certain services. They commonly include:
 
  • Shorter waits for general services
  • Longer waits for pregnancy, major treatments, or pre-existing conditions
If you already held similar cover with another insurer, waiting periods you’ve served are usually recognised.
 
Annual limits and benefit resets
 
Extras limits typically reset every 12 months, based on your policy terms. Understanding when they reset helps you plan treatments and claims more effectively.

How to use your cover day to day

Using private health insurance is easier once you know what to check before booking treatment.
 
Before making an appointment, it helps to:
 
  • Confirm the service is covered under your policy
  • Check how much benefit is available
  • Bring your health insurance details to the provider
  • Be aware of any out-of-pocket costs you may need to pay
If you’re going into hospital, your insurer can confirm what’s covered before admission, helping you avoid unexpected costs and reduce confusion.

Managing, reviewing, and changing your cover

Private health insurance is designed to adapt as your needs change over time.
 
As your healthcare needs evolve, you can:
 
  • Upgrade or downgrade your hospital cover
  • Add or remove extras cover
  • Adjust your excess
  • Switch insurers without losing waiting periods already served on equivalent cover
Many people review their cover around major life events, such as starting a family, changing careers, or when their healthcare needs shift.

Getting started with AIA Health

When you’re ready to take the next step, AIA Health offers hospital and extras cover designed to support both everyday healthcare and more significant treatment when you need it.
 
With flexible cover options and simple ways to manage your policy, getting started is straightforward — whether you’re new to private health insurance or reviewing your current cover.

Frequently asked questions

You can usually take out private health insurance online in minutes. Your policy starts from an agreed date, with waiting periods applying for certain services.

Some benefits may be available immediately, but most hospital and extras services have waiting periods before you can claim.

You can change or upgrade your cover at any time. Upgraded benefits may have new waiting periods, while downgrades usually don’t.

Yes. If you switch to an equivalent level of cover, waiting periods you’ve already served are typically honoured by your new insurer.

Many people choose to take out cover earlier to reduce future waiting periods, avoid Lifetime Health Cover loading, and have insurance in place before their healthcare needs change.