Dollar Saver Tip #20
Health insurance premiums are going up – but you can lock in a cheaper premium by pre-paying.
Let's get the bad news out of the way first. If you've got health insurance, your premiums are about to go up in April.
This year, costs are set to go up an average of 2.9%.
Now, the good bit: there's a way to avoid the price increase until as late as 2025.
Did you know?
A Finder survey of 1,054 respondents revealed 1 in 10 (10%) Australians have recently dropped or reduced their insurance coverage.
To get cheaper premiums, here's what you do.
1. Join a health fund that has deferred the April 2023 premium hike.
Funds including Medibank, Bupa, HCF and NIB are delaying the increase until later in the year.
2. Pre-pay your premium for 12-18 months, just before the 2023 premium increase.
Lots of funds let you pay a year (or more) of your health insurance upfront. These funds include Medibank, Bupa, HCF, HBF and NIB.
For example, HCF lets you lock in for 18 months. It's delaying its 3.33% price increase until September 2023. That means you could lock in 2023 prices until March 2025.
Depending on the policy you have, you could save up to $134 by prepaying.
Yes, the saving requires you to pay upfront. But if you can afford it, it's an easy way to keep your premiums down.