Press Release

For immediate release

Information verified correct on December 10th, 2016

Health bonus bonanza: be careful of private insurance enticements

  • Hundreds – even thousands – of dollars up for grabs from private health funds
  • Over 1 in 3 providers are offering gift card incentives of up to $300
  • Check your policy details and compare health funds before June 30!

20 June, 2016, Sydney, Australia – One of Australia’s biggest comparison websites1 finder.com.au is urging Australians to be careful of falling for private health insurance promotions, following a new investigation into current deals on offer.

June is the biggest and most competitive time of year for private health funds locking in new customers before the financial year ends. finder.com.au/health-insurance conducted an analysis of all 36 health funds in Australia and found the majority – 21 providers – are offering promotional incentives this month.

Deals include bonuses such as gift cards or other benefits like waived waiting periods. Over one-third of providers (eight of the 21) are offering gift cards for retailers including Myer, Rebel Sport, and Westfield. This makes it the most popular promotion.

Other incentives include monetary prizes, such as entering the draw to win $3,100 (TUH Health Fund), an Apple TV worth $348 (Peoplecare), or an Apple iPad Air 2. And four major funds have waived waiting periods, with ahm, medibank, TUH and Teachers Health Fund all offering this as an incentive. 

Michelle Hutchison, Money Expert at finder.com.au says Australians should review their private health insurance policies before taking advantage of these deals.

“There are some great deals out there for health insurance where Australians could save money on switching funds or signing up for the first time. However, you should be careful before jumping into a policy that seems attractive from the outset. 

“Eight providers are offering one month or more of free cover, but this might not necessarily end up so budget-friendly later down the track. For instance, for someone under 30, the base tier may be $25 per week. However, if another policy costs $20 per week with no free month, after one year this policy could end up costing $160 less than the first policy with the free month.”

Many people look to take up private health insurance at this time of the year for tax reasons. For people earning over $90,000 for singles or over $180,000 for couples, they are eligible to avoid the Medicare Levy Surcharge. Also, those aged over 30 years-old who don’t have cover yet will be charged a Lifetime Health Cover loading if they take out cover later.

“It’s essential for policyholders to check your policy details and compare providers based on your needs such as the level of cover and what’s included and excluded before you even consider the promotion. If you’re looking at taking out private cover for the first time, you should get the best possible understanding of the benefits or pitfalls before you purchase cover.

“A cash back offer might not be worth the extra hundreds – or even thousands – of dollars you may end up spending over the life of your policy, especially if you don’t use it. 

“If you aren’t sure about what policy is best for you, make sure you compare health insurance online to find the best cover.”

The full list of funds and their promotional offers can be found here:finder.com.au/eofy-health-insurance-deals

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Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

About finder.com.au:

finder.com.au is one of Australia’s biggest comparison websites and has helped over 4.8 million Australians find better credit cards, home loans, life insurance, shopping deals and more since 2006. finder.com.au compares 250 credit and debit cards from 31 providers, over 300 home loan products, and information from 13 life insurance providers as well as online shopping promo codes, mobile phone plans, travel insurance and more. One Australian every five minutes is using finder.com.au or creditcardfinder.com.au to find better (Source: Google Analytics).

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