Do you know what ‘SINKs’ are? How about ‘DINKs’? No idea? Read on as I explain, because depending on which of these groups you fall into, you could be paying an extra ‘Singles Tax’.
According to recent research commissioned by comparison service, iSelect, Aussies surveyed on a single income with no kids (these are our ‘SINKs’) are spending an estimated $7,691 more per year in ‘Singles Tax’ compared to those living in a double income household with no kids (or ‘DINKs’)! Yep, that’s A LOT of extra cash being forked out by single folks on common household bills and expenses such as mortgage repayments, rent, utility bills or health and car insurance.
If you’re a ‘SINK’, and the thought of paying a ‘Singles Tax’ isn’t to your liking… hey, of course it’s not right? Read on as we reveal three tips that could help you cut down on this extra ‘tax’. Why not make a ‘new financial year’ to-do list and add the following tips to it, along with your tax return of course.
- Check your plans/policies regularly
As they say, life goes by in the blink of an eye. But our circumstances are always changing, especially our health needs. If you can’t remember the last time you reviewed your health insurance plan, now could a great time to do so. When assessing your private health insurance, ask yourself “what do I need to be covered for?” And then review your policy to make sure you’re not paying for things you don’t need and that you’re covered for the things you do. For example, retirees still paying for pregnancy, or younger people covered for cataracts or families without orthodontics cover when teenagers need braces.
- Go shopping & don’t be afraid to switch
No, I don’t mean hit the shops and spend more money of course! I’m talking about shopping around for a better deal on insurance and/or utility products. Loyalty doesn’t always pay when it comes to these types of expenses. Often providers offer better rates/premiums to attract new customers than what are available to existing customers. Whether it’s your energy plan, home and/or contents insurance, health insurance policy or your home loan deal, a comparison service such as iSelect* can see if they can find you a better deal.
- Consider a higher excess & hunt for deals
News flash! Some insurance companies may offer you lower premiums if you opt for a higher excess, so it’s certainly worth checking to see what excess is included in your plan or policy and whether you could increase it if you’re looking to save money. For health insurance though, it may only be a good idea if you don’t think you’ll be admitted to hospital anytime soon.
On the topic of health insurance, around certain times of the year, funds may offer incentives to attract new customers so that could be a good time to shop around and take advantage of any deals. Remember though, don’t be lured by the cheapest deal, you’ve got to make sure that the policy/plan is still suited to your needs.
So, there are three hacks to help reduce your ‘Singles Tax’, and hey, even if you’re in team ‘DINK’ why not try these steps too? Everyone could use a little extra money in their back pocket right about now, that’s for sure!
Disclaimer
*iSelect does not compare all products in the market. The availability of products iSelect compare may change from time to time. Not all products made available from iSelect’s providers are compared by iSelect and due to commercial arrangements, area or availability, not all products compared by iSelect will be available to all customers. Some products and special offers may only be available from iSelect’s call centre or website. Click here to view iSelect’s range of Providers.