Health insurance: prizes including cash are on offer, but make sure the cover is worth it
GIFT cards, waived waiting periods, one month’s free cover and the chance to win prizes including iPads are being used by health insurers to snare new customers.
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GIFT cards, waived waiting periods, one month’s free cover and the chance to win prizes are among the lures being used by health insurers to snare new customers.
With June 30 not far away, health insurance providers are rolling out a platter of their most enticing offers in a last-minute attempt to score new business before the new financial year arrives.
Many of us sign up to health insurance in June to avoid being hit with Lifetime Health Cover loading.
This hits customers who haven’t taken hospital cover by July 1 when they have turned 31 — they are charged a two per cent loading on top of their premium for every year they don’t have hospital cover.
As a result, June is the busiest time of year for private health insurers to roll out new promotions, shows analysis by financial comparison website Finder’s spokeswoman Michelle Hutchison.
“The most popular incentive this year is the gift card with 38 per cent of these funds offering gift cards for retailers such as Coles Group, Myer, Rebel Sport and Westfield,’’ she says.
“Four funds have waived waiting periods — AHM, Medibank, TUH and Teachers Health Fund, and eight insurers are offering one month or more of free cover.”
Some prizes to be won by insurers include $3100 in cash, an Apple TV worth $348 or an Apple iPad Air 2 worth about $600.
There are more than 25,000 health insurance products on the market so it can be difficult to choose which policy best suits you.
A good place to start is the Federal Government website www.privatehealth.gov.au/compare which lines up all the polices side-by-side.
But Patrick Canion, from specialist financial advice service Ipac, says look beyond the bonuses added onto policies and don’t let these perks overshadow what might be the best cover for you.
“In a couple of years time, when you need dental work done for example, and it’s not covered because you chose a plan only to get a gift voucher, then that incentive will be long forgotten,’’ he says.
“Get in to beat the lifetime loading but what is most important is that you are getting value for money for your circumstances. Get a policy price without any incentives and compare it on that basis and then treat any incentives as a bonus.”
Originally published as Health insurance: prizes including cash are on offer, but make sure the cover is worth it
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