Dollar Saver Tip #15
Save: $261+
Tip overview:
Whether or not your family's growing, you can save hard cash by being smart with your health cover.
James here, Finder's editor for insurance and chief deliverer of some bad insurance news.
The government is about to sign off on a bunch of health insurance premium hikes. Fair warning: it'll happen very soon. Possibly, before you've had a chance to read this email.
Every health fund in Australia raises their premiums annually on the 1st of April, and like death and taxes, there's no way of completely avoiding it.
The good news? There are a couple of ways you can stay ahead of the insurers – and save.
Did you know?
For millions of Australians, the 2022 premium hikes were delayed. Learn more from our in-house expert Tim's recent appearance on Sunrise.
Option 1: Pre-pay your premium to lock-in today's prices.
Major health fund nib – which has raised its premiums by 3.44% on average over the last 5 years – is one of 6 insurers who'll let you make upfront payments for your cover. You can do this for up to 13 months with nib, rather than having to pay monthly.
I ran some quick numbers and found a top-tier policy would be $261.88 cheaper, if you pre-paid for 13 months of cover ahead of the increase.
Option 2: Switch to a better deal.
The cost of your policy, and what you're covered for, can vary massively from one fund to another.
For instance: on Finder, there's a difference of $134.06 per month between the cheapest and the most expensive extras policies. Comparing what you're paying now against the best offers in the market could save you a small fortune.