When you think of ways to save money, you might be thinking of cutting back on online shopping or spending less money on take-out meals. However, did you know that health insurance policies can serve as a money-saving tool?
After all, your family’s health is important, and it is best to avoid spending too much on medical and healthcare costs.
Each year, health insurance providers review their yearly premiums to fix a government-approved percentage increase or decrease to cover changes in benefit costs. While this amount varies from year to year, a premium increase can still have an impact on your overall budget. In this article, we will share some suggestions for you to make better health and money-saving decisions.
- Compare Private Health Insurance Policies
When it comes to health insurance policies in Australia, you are spoilt for choice. Picking the one right for you can be overwhelming, since it can take lots of time and effort to shop around and compare different plans to get a good deal. In addition, different health funds offer additional benefits and inclusions. However, various reliable online websites save you time by comparing a range of Australia’s health insurance funds in minutes.
It is essential to read each policy’s product disclosure statement (PDS) to understand the relevant inclusions and exclusions, as well as the extras suitable for you. Usually, health insurance premiums are revised in April, making the peak period of February to March the best time to shop around for a policy. Moreover, health funds compete for new customers by offering a slew of bonuses and incentives before the premium increases.
- Divide Your Coverage
There are two types of health insurance—hospital insurance and extras insurance (for issues related to dental health and physiotherapy treatment). Splitting your health insurance coverage between two providers can sometimes result in lower premiums or better options than purchasing a combined coverage with a single provider.
It is also a good idea to do some reading and go over your hospital and extras coverage separately to ensure that it covers everything you need. For example, if you recently had a baby or got a tooth implant and do not foresee another one in the near future, you can consider taking some features off your plan. However, it is essential to keep in mind that if you discontinue coverage for a particular service, waiting periods may apply when you reinstate it.
- Pay Premium in Full Before Hike
If you pay your premiums before the yearly premium revision, many health insurers will let you pay for 12 months at the previous year’s rate. This is known as locking in your premium. This is an excellent way to save money because in this case, you are essentially delaying having to pay the revised premium for an entire year.
Although this may work out well for you in the longer run, it is important to consider how this may affect your monthly budget because you will be paying a lump sum all at once. Also, it is important to check with your provider about the last date you can pay before the deadline.
- Take Advantage of Your Age
As the government wants to encourage young Australians to buy private health insurance, they have introduced the Lifetime Health Cover (LHC) initiative. If you have yet to turn 30, you could be in for some great saving deals. If you purchase private hospital insurance between the ages of 18 and 29 years, you will receive a 2% discount on your premium for each year you are under 30. And, if you decide to keep that policy, you’ll keep the discount until you’re 41 years old.
If you do not have coverage by 1 July following your 31st birthday, you may be required to pay the LHC loading on top of your premium.
In addition, the government also offers a rebate on private health insurance premiums. This rebate also depends on your age, income, and coverage. If you are eligible for this rebate, you could receive a maximum rebate of up to 32.812% on your premium.
Conclusion
These are just a few ways to save money on your health fund. It pays to do your homework, shop for the best deals, and take advantage of your age and any discounts the insurance company provides. With proper guidance, you can be sure you will get the coverage you require at a price you can afford.
