The Premium Jump at 65
Health insurance premiums increase gradually through your 50s, but around age 65, they often jump significantly. A plan costing $100/month at 60 might be $150+ at 65 — a 50% increase.
This reflects the reality that health insurance claims increase as you age. People over 65 use healthcare 3-4x more frequently than 45-year-olds.
If you're approaching 65, get quotes now for what your insurance will cost at 65. Don't assume your current premium trajectory continues smoothly.
Pre-Existing Condition Reassessment
When you reach 65, insurers sometimes reassess your coverage. If you've been receiving an exclusion on arthritis, your insurer might narrow that exclusion or apply new conditions. You're not required to switch insurers at 65, but your existing insurer might propose changes at renewal.
Read renewal documents carefully. This is the time to shop around. Switching to a different insurer at 65 might get you better terms than accepting your current insurer's 65-plus adjustments.
Coverage Limits and Age
Some insurers have lifetime limits on cover (e.g., "$50,000 total cover after age 65"). Others have annual caps that don't change with age. Understanding your specific policy is critical.
If you're with an insurer with age-specific limits, understand what happens to your cover at 65, 70, and 75. Some policies become progressively more limited as you age.
Common Conditions at 65+
Arthritis, heart disease, vision changes, hearing loss, diabetes, high blood pressure — these are the common diagnoses at 65+. Most are chronic conditions requiring ongoing specialist management.
Ensure your coverage at 65+ includes major medical access (not just surgical cover). You'll be seeing specialists regularly, and specialist consultation costs need to be covered.
The Choice to Stop Insuring
Some people stop health insurance at 65, either due to cost or belief they won't need it. This is a significant risk. Even with free public healthcare at 65+, waiting times increase for older people (ironically, when they most need faster access). Private access becomes more valuable, not less.
Maintaining insurance into your 70s and 80s is important unless you can genuinely afford private healthcare out-of-pocket.
Income in Retirement Changes Strategy
If you move from full-time work to superannuation at 65, your income might drop significantly. This affects how you structure insurance:
- Higher excess ($1,000) is less suitable if you're on a fixed retirement income
- A $500 excess with slightly higher premiums is better for retirees because they can't absorb large unexpected costs
Switching Insurers at 65
Switching at 65 means new health declarations and potential new exclusions. If you've developed conditions since your current policy started, a new insurer might exclude them.
Get advice from a licensed adviser before switching at 65+. The pre-existing condition risk is real and requires careful navigation.