How to Save Money on your Private Health Cover
With April 2020 looming around the corner and private health insurance premiums set to rise by an average of 2.92%, health experts cannot place enough stress on the importance of regularly reviewing your health cover.
Everyone has different needs and of the 37 health funds in Australia, none hold the title of the ‘best health insurance provider.’ However, there is a perfect policy for everyone, and the only way to know that your policy is working in line with your current health needs is to review your health cover at least once a year. In addition to this, there are a few other key tips to help you save money on your health insurance cover, Health Deal tells you how
Increase your Excess
Principally, the whole purpose of having an excess is to pay less on your premiums. Since April 2019, insurers have the choice to offer excesses on hospital cover generally in the one of the following amounts of $250, $500, $750, $1,000 and $1,500. The basic rule is the higher your excess, the lower your health insurance premium payments.
Get Insured Before your 31st Birthday
You can avoid paying the Lifetime Health Cover Loading(LHC), which is the government-imposed tax on individuals of a certain income without health insurance, by taking out health cover before your 31st birthday. Unless you sign up for private health insurance before this time, you may be liable to pay higher premiums for up to 10 years.
Use your Extras
Many people don’t make full use of their extras cover, which is the component of private health insurance that takes care of services like dental and optical treatment. Some members pay for a comprehensive cover and then only use a small part of it, which is why it’s important to have your health cover reviewed regularly. If you choose an extras policy with a good rebate, you’ll be able to save even more on your health cover.
Pay your Premiums through Direct Debit
Many funds offer a discount when you opt to pay your health insurance premiums through direct debit. Some health funds can offer you a discount of up to 4%, and every cent counts.
Be Seen By your Fund’s Preferred Provider
To get the best value for your health insurance, use your health fund’s approved or agreed provider. Most health funds have agreements with certain health care providers to offer their members gap-free treatment. This means that you can save on your out-of-pocket expenses, or even eliminate it altogether. Ask your health fund about their gap cover today.
Young People’s Discount
If you are between 18-25 years old, you can save a substantial amount of money if you choose to take out health cover at this stage in your life. Through the Young People’s Discount, you are eligible to receive a 10% discount on your health insurance premium. This discount will apply to your policy until the age of 40, where it will decrease by 2% per year
Pay your Premiums before the 1st of April
To save money on your health cover, if you paid your annual premium before the 1st of April, you can lock in your cover for the next 12 months at its current price, avoiding the hike for at least a year.
The April 2020 premium hike is the lowest increase in the last decade. If you want to go even further and lock in your cover for 2 years, you can achieve this through some forward planning. For example, if you purchased a year’s worth of coverage on April 2nd, and then did the same thing on the 31st of March 2021, you’d have locked in your cover at the same price for 2 consecutive years. It is important to note that during that period if you wished to upgrade your cover or change insurers, there is no penalty and your health fund will simply refund your remaining premiums.
Choose a health fund with a great hospital coverage
If you’d like to save on your out-of-pocket, you will want to choose a health insurance provider that has agreements with a high number of hospitals. This ensures that you can enjoy the same hospital benefits and gap cover in more locations across Australia should you ever require hospitalisation away from home.
How Health Deal Can help you Save Money
The best way to guarantee that you save and get the best value for your money and to save on your out-of-pocket is to review your health cover, and that’s exactly what Health Deal does. We are a private health insurance comparison service that helps Australians to get the best medical coverage that they need for that period of their life for the best price. And the perfect bit is? It’s absolutely free. Call Health Deal today on 1300 369 399 for a free comparison.
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