How to save on your private health insurance
The annual private health insurance reforms mean prices will rise once again starting from the 1st of April, with an expected average premium increase of 3.25% and some policies could be even higher (5.91%).
It comes as no surprise that three out of four private health insurance members struggle to meet the cost, citing that the premiums are one of the biggest strains on the family budget.
If you are stressing over the ever-increasing cost in premiums, the Credit Savvy team have some savvy tips to share on how you could save on your health insurance.
Review your policy regularly
There are many people paying for a higher level of cover than they need to, therefore, it pays to review your policy regularly and pay only for what you need. Here are a few questions you should ask yourself:
- How much am I paying on my existing policy?
Is it worth staying with your current insurer or can you possibly find the same level of cover but at a lower rate elsewhere?
- Have my circumstances changed?
As your stage of life changes, you’ll most likely have different needs. Plan ahead and only have cover for the benefits you are most likely to claim on.
Review your excess
You will only ever pay an excess if you go to hospital. Depending on your circumstances and how often you make a claim, you could consider lowering your premium by opting in to pay a higher excess. The higher the excess you agree to contribute upfront as part of your cover, the lower your health cover payments will be.
Pay your annual premiums upfront
If you pay your annual premium as a lump sum before 31 March, some insurers will allow you to get the cover at the old rate and by doing this you could delay the premium increase for 12 months. Also, if you pay your annual premium in advance, you could also receive a discount of up to 4%.
Pay via direct debit
Check with your insurer, as some may give you a discount of up to 4% if you pay via direct debit.
Do you know if you qualify for a corporate discount? Private health insurance legislation allows health funds to give up to a 12% discount under agreements with companies.
Compare & switch
Remember, there are no lock-in contracts with health insurance. If you’re unhappy with your cover then take the time to shop around as new offers and deals are frequently in the market. When you’re ready to make the switch, you’re entitled to keep the waiting periods you’ve already served, along with a refund of any premiums you’ve paid in advance.
Choosing a health insurance policy can be overwhelming, with many insurers to choose from, each providing different policies. It’s important to look closely to find one that suits your needs and be aware of exactly what you’re getting in terms of cost, coverage and value for money.