However, there are some health insurance traps of which you need to be aware, so here are five questions you should ask first, to find the best deal:

What’s my loading?

There is a 2 per cent lifetime health cover loading that applies for each year after the age of 30 that you do not have a hospital policy. It goes as high as 70 per cent – if you take out cover at age 65.

However, the loading lasts only 10 years, and there are some exemptions for returning expats, new migrants and defence force personnel.

Splitting your health insurance policy – from family to single/family – could mean other family members avoid paying for your loading, if they are not liable for one, to reduce the overall cost.

What’s my rebate?

The federal government pays a rebate on private health insurance policies. The highest rebate is 32.8 per cent for over-70s, followed by 28.7 per cent for those aged 65-69 and 24.6 per cent for under-65s. The rebate also drops for higher-income earners.

When looking at health insurance quotes, check whether they include the appropriate rebate, so you know you are comparing “apples with apples”.

What are my waiting periods?

Waiting periods exist for some treatments, to prevent new health insurance purchasers from making an immediate claim. However, some health funds waive them to attract new business.

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If you are taking out health insurance to avoid a lengthy public elective surgery waiting list, compare the waiting periods of several funds on the procedure you need, to weigh up the best option.

Do you have an arrangement with my doctor?

If you need elective surgery, and have a preferred doctor or hospital, private health insurance can help pay for it.

However, check first with the fund before signing up, as they may even have a “no gap”, or “known gap scheme” with your preferred doctor. That can really reduce the cost.

What’s the deal?

Health insurers may offer new customers up to six weeks of premiums free, or hundreds of dollars in cash backs to join. So, you can afford to demand a good deal when signing up.

You should also consider switching between funds regularly to save a few hundred dollars a year in premiums.

For example, right now, BUPA, AIA Health, Medibank and AHM are all offering six weeks free, and NIB is offering $300 cahback for new sign-ups.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.