Save
How to avoid a loyalty tax
Australians have a week left to beat the health insurance price increase on 1 April, a comparison site has warned.
How to avoid a loyalty tax
Australians have a week left to beat the health insurance price increase on 1 April, a comparison site has warned.
According to Finder’s Loyalty Tax Report, Australians have been with the same health insurer for 10.6 years on average. Premiums have increased by 81 per cent – or around $920 annually per person based on the average gold-level policy – in that time.
Health insurance premiums are set to rise by another 2.93 per cent on average next Wednesday, 1 April, with some policies increasing by as much as 5.63 per cent.
Sophie Walsh, health insurance specialist at Finder, said the figures indicate that many Aussies do not realise the potential savings to be had from switching providers.
“Health insurance can feel like a total rip-off. Households adjust to a price rise, only to come back a year later and see they’ve gone up again.
“That said, there is a range of things you can do to save on cost without ditching your health insurance altogether,” she said.
Six tips to get a better deal:
Sophie Walsh shares Finder’s top tips for saving on your health insurance:
1. Compare health funds. Finder research revealed there was a $58 gap per month between the most expensive and the cheapest “gold” policy – a potential saving of $635 a year between the highest and lowest-priced policies on the same coverage tier.
2. Ditch the couple’s policy. A recent Finder survey of over 1,000 respondents showed that 64 per cent of Australians wrongly think a couple’s policy is cheaper than two single policies.
“A couple’s policy may help you save on paperwork, but it still costs the same as two single policies. Couples may even end up paying more for their insurance than they need to if one person needs a higher level of cover,” Ms Walsh stated.
3. Mix and match your hospital and extras cover. One in two Australians wrongly think you can’t split your cover, according to Finder’s survey.
“While combined cover may be more convenient, customers may receive better value or more tailored cover if they split their policy depending on their health requirements.
“For example, when it comes to extras cover, you might want to take advantage of ‘no gap dental’ with one health fund, but for hospital cover another provider might have a better partner network. You also have the option to split your policy with the same provider,” Ms Walsh said.
4. Regularly review your hospital tier. “You may have opted for gold cover during pregnancy but no longer need the same level of cover now that your baby is born. Opting for lower tier cover can see your premium drop significantly. Just be aware of what treatments you’ll be ditching before you make the call. Also keep in mind the waiting periods you’ll have to reserve if you do want to increase your cover again at a later date,” advised Ms Walsh.
5. Prepay your annual premium upfront before the April 1 deadline. One in 5 Aussies already do this, according to Finder’s survey. “This will enable you to lock in your rate for the next 12 months at the old price. Some health providers also offer an extra annual discount of around 1 per cent for paying upfront,” Ms Walsh noted.
6. Make the most of sign-up deals when switching: “Some providers may offer four to six weeks free and no waiting periods if you choose to sign up,” Ms Walsh concluded.
RELATED ARTICLES
About the author
About the author
Expenses
Expert tips to secure your financial safety net
New Zealanders are known for their "she'll be right" attitude, but when it comes to handling unexpected bills, being prepared is crucial. Read more
Expenses
Australians continue to opt for free VPNs, ignoring potential privacy risks
Australians, alongside citizens of Sweden, South Korea, and Mexico, are increasingly choosing to use free Virtual Private Networks (VPNs), despite the potential threats to their privacy. Read more
Expenses
Rooftop solar in childcare centres could cut energy bills by millions
The analysis conducted by Parents for Climate has revealed that the installation of rooftop solar and batteries in early childhood education and care (ECEC) centres could lead to savings of up to $130 ...Read more
Expenses
Corporate Traveller identifies key strategies for business travel savings
Flight Centre Travel Group's Corporate Traveller, a premier service provider for managing SME travel, has shared several effective strategies that enabled their business clients to significantly ...Read more
Expenses
Price no longer the prime factor for energy bills
Many Australians are intrigued but unconvinced when it comes to greening their energy bill. Read more
Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. Read more
Expenses
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think. Read more
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. Read more
Expenses
Expert tips to secure your financial safety net
New Zealanders are known for their "she'll be right" attitude, but when it comes to handling unexpected bills, being prepared is crucial. Read more
Expenses
Australians continue to opt for free VPNs, ignoring potential privacy risks
Australians, alongside citizens of Sweden, South Korea, and Mexico, are increasingly choosing to use free Virtual Private Networks (VPNs), despite the potential threats to their privacy. Read more
Expenses
Rooftop solar in childcare centres could cut energy bills by millions
The analysis conducted by Parents for Climate has revealed that the installation of rooftop solar and batteries in early childhood education and care (ECEC) centres could lead to savings of up to $130 ...Read more
Expenses
Corporate Traveller identifies key strategies for business travel savings
Flight Centre Travel Group's Corporate Traveller, a premier service provider for managing SME travel, has shared several effective strategies that enabled their business clients to significantly ...Read more
Expenses
Price no longer the prime factor for energy bills
Many Australians are intrigued but unconvinced when it comes to greening their energy bill. Read more
Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. Read more
Expenses
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think. Read more
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. Read more
More articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Broker Daily
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Centre
- Investor Daily
- Lawyers Weekly
- Money Management
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- World of Aviation
EVENTS AND SUMMITS
- ACE25 The Accounting Conference and Exhibition
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian AI Awards
- Australian Aviation Awards
- Australian Aviation Summit
- Australian Broking Awards
- Australian Cyber Awards
- Australian Cyber Summit
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Law Forum
- Australian Space Awards
- Australian Space Summit
- Australian Wealth Management Awards
- Australian Wealth Management Summit
- Better Business Awards
- Better Business Summit
- Broker Innovation Awards
- Broker Innovation Summit
- Budget Summit
- Commerical Finance Awards
- Corporate Counsel Summit
- Defence & National Security Workforce Awards
- Fund Manager of the Year Awards
- ifa Excellence Awards
- Lawyers Weekly 30 Under 30 Awards
- New Broker Academy
- Partner of the Year Awards
- Partner Summit
- REB Awards
- Rising Star Awards
- SME Bootcamp
- SMSF Technical Strategy Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Finance Summit
- Women in Law Awards
- Women in Law Forum
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Make your nest egg grow. Register now for nestegg updates.