If you’re looking for an easier way to pay for your health insurance premiums, have you considered using plastic? It’s simple and convenient to pay your health insurance premiums with a credit card and using plastic can also help you access a wide range of other benefits.
Let’s examine the pros and cons of paying for health insurance with your credit card and what you need to do to get started.
Yes, you can pay your health insurance premiums with a credit card. Regardless of whether you’re a member of a major fund or a smaller restricted-access fund, credit card is a widely supported premium payment option across the board.
Using your credit card can be a much more convenient option than some other payment methods, such as mailing a cheque or paying in person at a health fund branch, with most health funds allowing you to use your credit card when paying premiums online or over the phone.
You will need to provide the following details to pay insurance premiums using your credit card:
Another option when paying your health cover premiums is to set up a direct debit from your credit card. To do this, it’s a simple matter of filling out a form provided by your health fund with your credit card details. Your fund will then deduct the relevant premium amount from your credit card each month, quarter, year, or whenever your regular premium payment is due.
There are several benefits to paying your health insurance premiums by direct debit from your credit card, including:
| Fund | Direct debit discount | Annual payment discount |
|---|---|---|
| 4% |
| |
4% | n/a | |
n/a |
| |
2% | n/a | |
|
| |
2.5% | n/a | |
n/a |
| |
4% | n/a |
While direct debits from your credit card undoubtedly have their benefits, there are a few downsides to be wary of. These include:
Another risk you should be aware of is whether your credit card provider treats your health insurance premium as a purchase or as a cash advance. If your card provider classifies health cover premium as a purchase, you will be able to take advantage of the interest-free days available on your card and also earn reward/frequent flyer points (if your card offers them).
However, some card providers will classify a health insurance premium payment as a cash advance, which means it will attract a higher interest rate than purchases and you will not be able to take advantage of any interest-free days. A cash advance fee may also apply to your transaction.
You generally can’t earn reward points on cash advances either, so it’s a good idea to check the terms of your credit card contract before using plastic to pay for your health insurance premiums.
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