Consumer advocates are urging young Australians not to let "fear-laden" health insurance advertisements pressure them into taking out private health cover.

As the federal government reviews health funds' requests to raise premiums, Choice has warned young Australians of the problems with poor-value "junk" policies, low extras payout rates and the increasing number of complaints to the industry ombudsman.

"Faced with so many issues, it's hard to see how insurers could reasonably expect consumers to pay another 5 per cent premium price hike this year and why many younger consumers would take out cover at all," Choice's Matt Levey said.

"Yet, if we get hit with another 5.6 per cent increase, we'll be paying $100 more a year on average for a standard hospital policy, with premium singles likely to jump from $1405 to around $1505, after the rebate is applied."