Money Hack: Save up to 4% on your health insurance every year

Richard Laycock 29 July 2017 NEWS

Man sitting at computer happy after finding a deal

Offset ever-increasing health insurance premiums with payment discounts.

Are you sick of your health insurance premiums going up every year? Of course you are.

Since 2010 health insurance premiums have gone up on average 44.81%, leaving many Australians looking for ways to cut back on how much they're spending on health cover.

While there are many hacks to cut down on your annual health insurance costs, such as paying your premiums before 1 April, paying by direct debit, taking advantage of sign-up bonuses and earning frequent flyer points when paying your premiums, there is one surefire way to save ...

The hack

Pay your premiums upfront. Some health funds in Australia offer members up to a 4% discount on health insurance if they choose to pay their premiums either bi-annually or annually.

While this option can put some stress on the family budget – as the annual cost of a health insurance policy can run into the thousands of dollars – the struggle only has to come in the first year.

Once you have taken the initial hit in year one, open a savings account and "pay" your premiums into that account each month. That way, once the time has come to renew your policy, you'll have enough set aside for your full year's premiums without it affecting your everyday budget.

If you can also time this payment to occur before the annual price hike on 1 April, you'll be able to save even more.

Premiums have risen by almost 6% each year since 2010, meaning that if you combine your annual payment discount with beating the price hike you can save almost 10% on your health insurance costs each year.

Plus, if you're really savvy, you can take advantage of savings account bonus rates to earn extra interest on the money you're saving to pay your premiums.

If you're looking to save money on health insurance by paying your premiums annually, below is a table of the funds offering annual payment discounts.

Fund Direct debit discount Annual payment discount
n/a
  • Annual: 4%
  • Biannual: 2%
4%
n/a
n/a
  • Annual: 2.5%
2%
n/a
4%
n/a
  • Annual: 4%
  • Biannual: 2%
  • Annual: 4%
  • Biannual: 2%
2.5%
n/a
n/a
  • Annual: 4%
  • Biannual: 2%
4%
n/a
  • 2.5% (debit cards)
  • 1.5% (credit cards)
n/a

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Picture: Shutterstock

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